The Toyota Highlander has been a family-hauling staple for more than two decades, but in 2025, buyers are steering elsewhere. Sales have cratered by nearly 50 percent this year, and Toyota’s response for 2026 is… perplexing. Instead of bolstering value, the company has trimmed the lineup, ditched cheaper trims, and jacked up the price tag.

The most painful cut is the base LE, which disappeared along with its reasonable $40,320 sticker. The hybrid side lost its XLE Nightshade and Limited 25th Anniversary Edition trims. And while we’re here, every Highlander now comes with all-wheel drive standard. Nice for traction, not so nice for your bank account.

The end result? A new starting price of $45,270—a jump of $4,950 over last year. That’s a brutal increase when you realize the bigger, roomier Grand Highlander starts at just $41,360. In fact, a Grand Highlander XLE AWD is only $460 more than a Highlander XLE AWD. Toyota seems almost eager to funnel buyers up the size chart.

Beyond the pricing shuffle, nothing mechanical has changed. The Highlander sticks with two familiar powertrains. Gas models get the 2.4-liter turbo-four (265 hp, 310 lb-ft) paired with an eight-speed automatic and standard AWD, good for a respectable 21/28/24 mpg. Hybrid versions continue with the 2.5-liter four-cylinder, an e-CVT, and a rear-mounted electric motor, combining for 243 hp and an efficient 35 mpg across the board.

Here’s how the 2026 lineup breaks down:

Trim	MSRP
Highlander XLE AWD	$45,270
Highlander Limited AWD	$49,725
Highlander Platinum AWD	$52,925
Highlander XSE AWD	$47,340
Highlander Hybrid XLE AWD	$47,020
Highlander Hybrid Limited AWD	$51,475
Highlander Hybrid Platinum AWD	$54,675

The Highlander remains a solid, capable three-row crossover, but Toyota’s latest move makes it hard to see where it fits. With the Grand Highlander offering more space for less money, the smaller sibling risks becoming the odd one out.

Source: Toyota