I bought a new Tesla Model Y and have driven over 36,000 miles. Since taking delivery, the price has come down. And as an owner for close to two years, I can give a total cost breakdown. To make this even more useful, I’m using current prices.
This is a guide for buying a new Tesla Model Y in 2025. Does it make financial sense? Let’s start by looking at the upfront costs. I’ll include credits and discounts. You’ll also find all transaction costs, sales taxes and more. Don’t overlook all the expenses of becoming an owner, along with the potential savings.
Total Cost to Own a Tesla Model Y
Here’s a quick guide. You can use the on-page links below to jump around this article.
- Tesla Model Y Vehicle Cost
- Tesla Tax Credits and Discounts
- Car Sales Tax and Registration Fees
- How Much I Pay for Tesla Insurance
- Total Cost to Charge a Tesla Model Y
- Total Model Y Maintenance Costs
- Tesla Model Y Total Cost
- Bonus: Why I Lived in a Model Y for a Year
Tesla Model Y Vehicle Cost
Here’s a chart that shows the Tesla Model Y price history (link for the most up-to-date info).
Whether it’s a standard or long-range Model Y, the price has come down. And going forward, we’ll look at just the long-range AWD. It’s listed at $47,990 and this is without including the potential tax credit and gas savings. Tesla’s site defaults to including those savings.
To compare, here’s the Tesla Model 3 price history as well.
Let’s also stick with the defaults to show the total cost to own a Tesla Model Y. And some quick notes. The default color is now stealth grey (it used to be white and I paid an extra $1,000 for silver paint). If you want a different color, it’ll cost $1,000-$2,000 more.
On top of that, here are some potential changes or add-ons.
- 20’’ Induction Wheels +$2,000 (lowers range)
- Tow Package +$1,000
- White Interior +$1,000
- Seven Seats (adding small 3rd row) +$2,000 (or +$1,000 if white interior)
- Full Self-Driving +$8,000 (it’s fun, but not worth it for 99% of people)
- Home Charger +$420 (plus installation costs)
- Mobile Chargers +$250
There are more Tesla Model Y accessories you can buy when placing an order. Although, there are lower cost after-market options. For example, Tesla floor mats are generally good to have.
If buying any accessory directly, the Tesla Model Y roof rack might make sense. If you install one yourself, there’s higher risk and it might limit any warranties.
The only add-on here I’d recommend are the mobile chargers. Slow charging at home is a lower cost than using superchargers. Also, as long as you’re driving less than an hour a day, slow charging overnight should be enough. Slow charging is also better for certain battery longevity.
The other two upfront costs are a non-refundable order fee of $250 and $1,390 destination fee. This brings the long-range Model Y total cost to…
Model Y Total Cost Before Discounts and EV Credits
$49,880 (includes order fee, destination fee and mobile chargers)
However, there are credits and discounts most people can use. This makes buying a new Model Y much more affordable…
Tesla Tax Credits and Discounts
When buying a new Tesla Model Y, you might be eligible for a $7,500 federal tax credit. The Inflation Reduction Act of 2022 made changes to these rules. This credit now applies when buying EVs from 2023 to 2032.
This could always change. The cost to buy a Tesla has dropped and EVs have hit escape velocity. The EV industry can now stand on its own, even without these credits. However, it’s still a great incentive in 2025. There are two big requirements to be eligible for this credit.
1. Income Limits: Make less than $150,000 in a year ($300,000 for couples filing jointly). If you make over $150,000 in the year you buy, but less the previous year, you still might qualify.
2. Model Y Price Limits: The total cost of buying a Tesla can’t exceed $55,000. This doesn’t include the destination fee. Although, it does include other order charges and accessories.
There was also another big change to EV tax credits. When I bought a new Model Y, I qualified but it didn’t come off the upfront price. I had to wait until filing taxes to get the credit. However today, you can apply the credit upfront when buying. It’ll directly lower the purchase price.
Tesla has also brought back its referral program. If you use a Tesla referral code, you can get a $1,000 discount. To learn more, here’s more info on the Tesla referral program. I’ve almost maxed out at the 10 referrals limit. However, I’ve included friends’ links as well.
Total Cost with Discount and Credit
$41,380 = $49,880 – $7,500 – $1,000
Now we’re getting somewhere. That puts a big dent in the total cost to own a Tesla Model Y. On top of that, you might also qualify for state or local specific EV credits.
Car Sales Tax and Registration Fees
Car sales taxes vary a lot between states. As of writing this guide, here’s a table of different car sales taxes.
| State | Tax | State | Tax |
| Nevada | 8.3% | Ohio | 5.8% |
| Kansas | 7.5% | Arizona | 5.6% |
| California | 7.3% | Maine | 5.5% |
| Illinois | 7.3% | Nebraska | 5.5% |
| Indiana | 7% | Iowa | 5% |
| Rhode Island | 7% | Mississippi | 5% |
| Tennessee | 7% | North Dakota | 5% |
| Utah | 6.9% | South Carolina | 5% |
| New Jersey | 6.6% | Wisconsin | 5% |
| Georgia | 6.6% | Louisiana | 4.5% |
| Arkansas | 6.5% | Missouri | 4.2% |
| Minnesota | 6.5% | Virginia | 4.2% |
| Washington | 6.5% | Hawaii | 4% |
| Connecticut | 6.4% | New Mexico | 4% |
| Massachusetts | 6.3% | New York | 4% |
| Texas | 6.3% | South Dakota | 4% |
| Florida | 6% | Oklahoma | 3.3% |
| Idaho | 6% | North Carolina | 3% |
| Kentucky | 6% | Colorado | 2.9% |
| Maryland | 6% | Alabama | 2% |
| Michigan | 6% | Alaska | 0% |
| Pennsylvania | 6% | Delaware | 0% |
| Vermont | 6% | Montana | 0% |
| West Virginia | 6% | New Hampshire | 0% |
| Wyoming | 6% | Oregon | 0% |
*the rates can vary across different state counties
There are a few states with 0% and on the high end, Nevada is 8.3%. Uff da, that’s steep. You’d think Las Vegas is bringing enough taxes to sustain the entire state 😂. At least there’s no state income tax in Nevada.
An average comes in right around 5%. So, let’s use that. And also an important note, you should pay the sales tax in the state you live in. For example, I took delivery of my Model Y in Colorado. However, I’m based in South Dakota. So, I paid South Dakota car sales tax.
On top of sales taxes, each state has different registration fees. Wheel taxes, etc. More states have started charging EV fees as well (or charging station fees). This is to compensate for a loss on fuel taxes with gas (used for road repairs and maintenance).
When buying and registering a Tesla, these extra fees for most people should come in below $150. Let’s now look at how this impacts the total cost of owning a Model Y.
Model Y Total Cost with Sales Tax and Registration Fees
$43,962 = $41,380 + $2,582 (average state sales tax of 5% and registration fees)
I’m a numbers guy and a pro in the spreadsheets. However, there’s one thing I missed in my calculations before buying. The destination fee is included when determining the total sales tax. That’s why I didn’t exclude the $1,390 destination fee here. That same is usually true for the $250 non-refundable order fee. Although, when figuring sales tax, I did exclude $250 for the mobile chargers and the $1,000 discount.
One more important note. Each state has different rules on how to factor in the $7,500 tax credit. Some allow you to use it to lower the total purchase price. This can bring down the sales tax. However, others don’t. For example, if I remember right, I was charged sales tax on the full Model Y cost in South Dakota.
Now you have the total upfront cost to buy a Tesla Model Y. However, there are ongoing costs. Let’s look at those next…
How Much I Pay for Tesla Insurance
I currently pay $165 a month for Tesla insurance. I’m a 32 year old male driver and I’m with State Farm. South Dakota is likely on the lower end for car insurance costs as well. Or at least compared to being in big cities with worse traffic and crime.
Coming from a financial background, it’s almost always best to shop around. Get quotes from multiple providers. You’ll often find huge gaps for the exact same coverage. I’ve switched providers a few times. And I wish I could get quotes for insurance directly from Tesla.
As of writing this guide, Tesla offers car insurance in these states…
- Arizona
- California
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
Tesla has more useful driver data to determine rates. As a result, you might get lower insurance premiums based on good driving behavior.
Either way, your mileage will vary. Car insurance costs continue to climb and should factor into the total cost of owning a Model Y.
Total Cost to Charge a Tesla Model Y
Here’s another variable cost. It largely depends on how much you drive and where you charge. But here are some rough numbers to consider.
The average driver in the U.S. drives close to 14,000 miles in a year. Let’s use this along with some other assumptions.
Assumptions
Tesla Model Y Efficiency: 3.45 miles/kWh (EPA estimate)
Charging Method: Slow charging at home
Electricity Cost: 17 cents/kWh (average U.S. residential rate)
Mileage: 14,000 miles
Calculations
Total kWh Consumed: 14,000 miles / 3.45 miles/kWh = 4,058 kWh
Total Charging Cost: 4,058 kWh x 17 cents/kWh = $690.86
Cost Breakdown
Annual Cost: $691
Monthly Cost: $57.57
Cost Per Mile: 4.93 cents
Comparison
Gas Vehicle Annual Cost: $1,960 (assuming 25mpg, $3.50/gallon)
Tesla Model Y Annual Cost: $691
If you’re charging at Tesla superchargers, the cost will be higher. The same is true for most other 3rd party chargers as well. On top of that, depending on the type of Model Y battery you have, fast charging might degrade the battery a little faster.
If you want to lower your total cost of Model Y ownership further, you can find free Tesla chargers all over the U.S. They’re usually slower chargers but it’s hard to pass up free. Check out that guide to learn more.
Total Model Y Maintenance Costs
There are some big benefits to owning an EV. Overall, it’s not an ICE vehicle (internal combustion engine). You don’t have constant explosions that create wear and tear. There are fewer parts as well.
Thanks to this, say goodbye to oil changes. You won’t need timing belt replacements and no exhaust system maintenance. On top of that, you’ll save money on brake pad replacements.
Brake Pads
Brake pads last longer due to regenerative braking. Compared to gas cars, you might go 2-3 times longer. Some Tesla owners have even reported going 150,000 miles before replacing them. Although, it largely depends on driving behavior. Will you be zooming around and slamming on the breaks? Or slow cruising with regen braking doing most of the stopping?
Cabin Air Filters
The Tesla Model Y has two small air filters up front. After driving 34,000 miles, it was high time to replace them. And it cost me $34. Here’s a video guide on how to install air filters…
That can be a great guide for planning ahead. Here’s the article version as well: Tesla Air Filters.
Windshield Wipers and Fluid
This is another minor cost to owning a Tesla. I haven’t replaced mine yet but will expect it to cost around $50 for both. However, I’ve added windshield wiper fluid a few times. Over 36,000 miles and this has cost me less than $10.
Tire Rotation and Replacement
Thanks to big batteries, a Tesla weighs more than a gas car. As a result, it leads to more wear and tear on tires. So, it’s good to expect you’ll need to replace them more often. That’s what I’ve planned into my budget, but I might be lucky so far…
After 36,000 miles I haven’t needed to replace my tires. On top of that, I haven’t rotated them yet… even though Tesla has been notifying me to do this for close to the past 20,000 miles. I’ve kept a close eye on the tire trends and they appear to be wearing evenly.
A big caveat though… I’m a non-aggressive driver. Either way it’s good to budget these into a Model Y total cost of ownership. I’ll replace the tires soon and expect it to cost roughly $1,700. And tire rotations cost roughly $60. Although, depending on where you buy tires, they might come with free future rotations.
Battery Replacement Costs
This is potentially one of the largest costs to owning a Tesla Model Y. It’s one of the most common concerns I hear. Replacing a Tesla Model Y battery in 2025 would cost $10,000-$15,000. However, I’m not that worried. Here’s why…
Buying a new Tesla comes with some good warranties. On top of that, other insurance providers will likely cover most of the battery replacement costs due to accidents.
Car companies and others are pumping billions into improving batteries. And already, we’ve seen them improve exponentially. Costs have dropped as well. If you’re buying a new Tesla today, time is on your side.
You’ll be able to buy a much higher range battery at a fraction of today’s cost. After 10 years, you might lose roughly 10-15% of your total battery capacity. And already, the Model Y has become the best-selling car in the world. It’s standardized and there should be plenty of battery replacement providers in the years ahead.
Tesla Model Y Total Cost Recap
Here’s a summary of buying a long-range Tesla Model Y. Let’s review the upfront costs and incentives…
Base Costs to Buy a Model Y
$49,880 (includes order fee, destination fee and mobile chargers)
Cost After Credits and Discounts
$41,380 = $49,880 – $7,500 – $1,000
Including Sales Tax and Registration Fees
$43,962 = $41,380 + $2,582 (average state sales tax of 5% and registration fees)
More Ownership Costs
- Tesla Insurance: $1,980 (annual cost)
- Charging at Home: $691 (annual cost)
- Cabin Air Filters: $34
- Windshield Wipers and Fluid: $60
- Tire Rotation and Replacement: $1,760
Once again, these are all rough costs based on my ownership experience. Nonetheless, they should help with some financial planning. And there’s one more big reason I could justify buying a Tesla…
Bonus: Why I Lived in a Model Y for a Year
The total cost to own a Tesla Model Y has come down from previous years. It’s a great car but if your goal is to save money, buying a basic Honda or Toyota is still the better move. However, living in a Tesla Model Y made it a much better financial move.
I no longer had to pay rent and on top of that, you can use Tesla camp mode all night. Compared to gas cars, you can keep the AC running without having to worry about toxic fumes.
Overall, it’s been a great way to keep costs low and travel. I’ve also taken two years off work. So, I had plenty of time to track down and use free slow chargers. Here’s how to find Tesla charging stations.
Living in a Tesla is not for everyone. However, if you’re up for an adventure, test it out for a weekend. Or skip paying for a hotel on your next long road trip. These savings add up. And if you want to learn more, check out my ultimate guide for camping in a Tesla. Here are my top recommended Tesla camping accessories as well.
Now you have a useful breakdown on the total cost to own a Tesla Model Y. If you have any questions, please reach out. Overall, the cost to buy and own a Tesla is close to the lowest it’s ever been. And we’ll likely see even better deals ahead.