New 2026 Lexus IS Price, Redesign, Interior   –  The New 2026 Lexus IS has received a power bump – and a new moniker change to match. A couple years after switching to a hybrid-only powertrain, the brand’s smallest crossover is now known as the IS 300h to reflect the adoption of the automaker’s fifth-generation gas-electric system.

The New 2026 IS 300h starts at $45,810, including a non-negotiable delivery fee of $2,205. From there, you can add one of three packages: F Sport Design, LISury, or the F Sport 2 kit added to this tester. Along with an optional coat of paint, it rang in at $53,549 before tax. Because the IS doesn’t get plugged in, it isn’t eligible for any federal or provincial rebates.

New 2026 Lexus IS Redesign and Update Plan

Exterior and Interior

The IS is limited by its subcompact footprint. That’s the case with most small vehicles, of course, but the IS’s mere 487 L of cargo space falls well short of many similarly-sized models from other automakers, where 650 L and up is the norm. However, its bi-level floor is helpful when transporting tall items, or hiding cargo below.

There also isn’t a lot of small-item space up front. Previously, the IS had an infotainment touchpad on the centre console. It now uses a touchscreen, but rather than redesign the console, Lexus put the seat heater controls in its place, rather than add storage space.

New 2026 Lexus IS Specs

All trims come with 18-inch wheels, LED headlights with washers, rain-sensing wipers, and a power sunroof. There’s also an auto-dimming mirror, heated steering wheel, heated and ventilated seats, eight-inch screen with wireless Apple CarPlay and Android Auto connections, cargo privacy cover, and dual-zone climate control.  New 2026 Lexus IS Price

But some items require adding a package, including that 12.3-inch screen, a similarly-sized digital instrument display, head-up display, hands-free tailgate, driver’s seat memory settings, an integrated garage door opener, power-folding mirrors, and a wireless charger. That last one is an odd option in a premium vehicle when it’s standard in so many mainstream models these days.

Engine and Performance

The Lexus IS 300h is powered by a 2.0L four-cylinder engine that, on its own, makes 150 hp and 139 lb-ft of torque. The new hybrid system brings that to a net of 196 hp when gas and electricity are working together – up from 181 hp previously. The system uses an automatic continuously-variable transmission (CVT), while standard all-wheel drive (AWD) is courtesy of a rear electric motor that contributes fuel-free power to those back wheels when extra traction is needed.

The IS isn’t terribly swift but it gets the job done, handling city traffic and passing at highway speed better than the last-generation hybrid did. It automatically switches between gasoline, electricity, or a combination of both, depending on driving conditions. The IS isn’t a sporty driver as its looks might suggest, but it’s fine as an everyday commuter. There isn’t much feedback through the steering wheel, but it responds quickly, takes curves smoothly, and brakes well. It’s confident on the highway, easy to park, and generally a decent driver overall.  New 2026 Lexus IS Price

New 2026 Lexus IS Fuel Economy

Natural Resources Canada (NRCan) rates the New 2026 IS 300h at 5.3 L/100 km in the city, 5.9 on the highway, and 5.6 in combined driving. In my week with it, I averaged 6.1, and it runs on regular-grade gasoline. The IS 300h doesn’t really have any hybrid subcompact rivals in this premium segment, and its gasoline-only equivalents are all around 8.0 L/100 combined or higher.  New 2026 Lexus IS Price

New 2026 Lexus IS Safety Features

The New 2026 Lexus IS its highest five-star rating overall, although that includes four stars for frontal crash. At the non-profit Insurance Institute for Highway Safety (IIHS), the 2024 model received the top “Good” rating for the original front crash and the updated side smash, which now better simulates being struck by a large SUV. However, in the updated front crash that now also assesses potential injury to a rear-seat passenger, it received a score of “Marginal.” It gets a Good+ rating for ease of use of its child seat tether anchors.

All models include such driver-assist technologies as adaptive cruise control, emergency front braking, pedestrian detection and braking, including when turning, lane-keep assist, road sign recognition, highway driving assist, blind-spot monitoring, and the government-mandated back-up camera. The optional packages can add a head-up display and self-parking assist.  New 2026 Lexus IS Price

New 2026 Lexus IS Price and Release Date

The New 2026 IS 300h ranges from $45,810 to $53,549, and all trims are hybrid. For that reason, it’s difficult to compare it to other premium brands, since their subcompacts come with gas-only drivetrains. These include the 2024 versions of the Audi Q3 at $44,115 to $53,565; the BMW X1, starting at $49,380; the Cadillac XT4 at $47,399 to $51,199 in AWD, among others.

The New 2026 Lexus IS is a niche vehicle, and not just because of its hybrid powertrain. It’s well-sized for city streets, but its subpar cargo capacity and cramped rear seat reduces its practicality. Its interior is among the best, though; and while it’s not all that sporty, it’s a very comfortable driver and with excellent fuel economy. Think of it as a small car for two that can take a couple more people in a pinch; and for those who can relate to that, the IS might just be the right choice.  New 2026 Lexus IS Price