Price of Base Lexus IS 2026 Rises by Nearly $5,000 After Dropping Four-Cylinder and V8 Engines

Updates for One of the Longest-Produced Sedans

The updated Lexus IS sedan will soon arrive at US dealerships, giving one of the brand’s longest-produced models a new lease on life. First unveiled in Japan in September, the 2026 model year received a sharper look, noticeable interior improvements, chassis refinements, and a simplified trim lineup.

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The 2026 model features a redesigned front end and arrives with a clearer trim strategy, having dropped several previous variants, which significantly raised the starting price.

Price Increase and Simplified Lineup

Price of Lexus IS 2026 Rises Nearly $5,000 After Dropping Four-Cylinder and V8 Engines

The biggest change in pricing is linked to the discontinuation of the base four-cylinder IS 300 and the all-wheel-drive V6 IS 300, making the IS 350 the base model.

This alone raises the starting Manufacturer’s Suggested Retail Price (MSRP) from $41,830 to $46,795, a jump of nearly $5,000. However, comparing equivalent trims, the increase is less dramatic. The F Sport Design trim went up by $1,640, and the fully loaded F Sport version by $2,015. All prices include a $1,295 destination and handling fee.

Even with this higher base level, the IS 350 remains competitive in its class. The 2026 BMW 330i starts at $47,500, and with all-wheel drive at $49,500. However, Lexus offers a 3.5-liter naturally aspirated V6 with 314 horsepower, compared to BMW’s 255-horsepower 2.0-liter turbocharged four-cylinder. This extra displacement still matters.

What’s New for 2026?

The current generation IS has been around since 2013, but Lexus decided to continue its sales with a third facelift for the 2026 model year, following updates in 2017 and 2020. The overall shape remains unchanged, but the 2026 update adds a more sculpted front bumper, a refined spindle grille, and revised air intakes for a sharper and more aggressive look.

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Beyond the updated front end, the changes are relatively restrained. There is a new design for the standard 19-inch wheels, and buyers can order red brake calipers and a larger ducktail-style rear spoiler. The Lexus emblem on the trunk lid has also been replaced with a full-letter script.

Paint colors such as Ultra White, Iridium, Cloudburst Gray, Caviar, Infrared, and Ultrasonic Blue Mica 2.0 have returned to the color palette. A new body shade called Wind has been added to the list.

How Much Has the Interior Changed?

The IS interior has arguably changed the most. A new dashboard design, revised door panels, and an updated center console give the cabin a more modern and cohesive look. These updates could easily be mistaken for a transition to a new generation.

The touchscreen now measures 12.3 inches, and Lexus has paired it with physical switches for climate control. The turbine-style air vents visually borrow some drama from the GR GT supercar. A new Radiant Red interior theme and optional forged bamboo trim add variety to the familiar black-and-gray palette.

The standard 10-speaker audio system can be upgraded to a 17-speaker Mark Levinson system. The cabin also features four USB-C ports and wireless charging. In terms of safety, the latest version of Lexus Safety System+ 3.0 offers updated driver assistance features.

Special Appearance Package

For early adopters, Lexus is offering a limited-run Special Appearance Package for the first 350 units of the Lexus IS 350 F Sport sold in the US. It adds a matte Hakugin White exterior color paired with a contrasting black-and-white interior theme.

The package also includes unique black-forged 19-inch BBS wheels, triple-beam LED headlights, a moonroof, as well as a set of premium features including the Handling and Technology packages, the Mark Levinson audio system, power rear sunshades, and special floor mats.

V6 Only

Lexus has simplified the American lineup to one engine for 2026. Every IS is now equipped with a 3.5-liter naturally aspirated V6 producing 314 hp and 280 lb-ft of torque. It can be paired with an eight-speed automatic transmission for rear-wheel-drive models or a six-speed automatic for all-wheel-drive ones.

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Both the base IS 300 and the powerful V8-powered IS 500 are gone, with no signs that either will return. In Japan, buyers also have access to the IS 300h, a hybrid model with a 2.5-liter engine and a combined output of 217 hp, but this version is not coming to the US.

Chassis updates for 2026 include new steering and suspension tuning. The brand claims the updates provide more consistent steering feedback and more natural response in corners. They have also refined the return of both the steering wheel and pedals to improve smoothness and control in everyday driving.

The goal, according to Lexus, is a more intuitive and engaging driving experience, even if the hardware itself remains familiar.

Detailed pricing for the updated Lexus IS is shown in the table below, alongside figures for the previous model for comparison. The updated sedan is expected to arrive at US dealerships in early 2026.

US Market Pricing

Lexus IS
2026 Model Year
2025 Model Year

IS 350 F SPORT DESIGN: $46,795 ($45,155)
IS 350 F SPORT DESIGN AWD: $48,795 ($47,155)
IS 350 F SPORT: $49,245 ($47,230)
IS 350 F SPORT AWD: $51,245 ($49,230)

Lexus’s decision to simplify the IS lineup to a single powertrain and significantly raise the starting price is a bold move in today’s market, where many competitors are betting on smaller and more economical engines, including hybrids. It can be seen as a bet on loyal enthusiasts who value the reliability and character of a naturally aspirated V6, especially against the backdrop of the general trend toward turbo engines and electrification. The success of this strategy will depend on whether there are enough such buyers to justify abandoning more affordable options. The updates, especially to the interior, certainly make the model more relevant, but the main challenge remains competing with more technologically advanced German rivals for similar money.

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