The 2026 Toyota Highlander Hybrid is a strong contender for families who want a three-row SUV that saves on gas without skimping on space or tech. With a combined fuel economy of up to 35 miles per gallon (MPG), it’s a standout in the midsize SUV class. But competitors like the Hyundai Palisade Hybrid, Mazda CX-90 PHEV, and Lexus TX 350h are nipping at its heels with their own efficient powertrains. Below, we compare the Highlander Hybrid’s efficiency against these rivals, looking at MPG, range, and real-world usability to help you decide which SUV stretches your fuel dollar furthest.
Fuel Economy Breakdown
The 2026 Highlander Hybrid pairs a 2.5-liter four-cylinder engine with electric motors for a net 243 horsepower, delivering 35 MPG combined (35 city/34 highway) in front-wheel drive (FWD) models, with all-wheel drive (AWD) models slightly lower at 34 MPG combined. Its 17.1-gallon fuel tank offers a range of about 598 miles in FWD, ideal for long family road trips. The Hyundai Palisade Hybrid, new for 2026, uses a 1.6-liter turbo hybrid system with 329 horsepower and an estimated 30 MPG combined, but its smaller 13.2-gallon tank limits range to around 396 miles. Mazda’s CX-90 PHEV (plug-in hybrid) combines a 2.5-liter engine with a battery for 27 MPG combined on gas alone, but its 14.8-mile electric range boosts efficiency for short trips. The Lexus TX 350h, a luxury cousin to the Highlander, hits 36 MPG combined with a 17.2-gallon tank, stretching range to about 619 miles, though it’s pricier.
Real-World Efficiency Factors
MPG numbers only tell part of the story. The Highlander Hybrid’s smooth transition between gas and electric power makes it easy to hit its rated 35 MPG in mixed driving, especially in city traffic where the electric motors do more work. Its regenerative braking also helps recharge the battery during stop-and-go drives. The Palisade Hybrid, with its turbocharged setup, offers more power but sacrifices some efficiency in highway cruising, dropping closer to 28 MPG in real-world tests. The CX-90 PHEV shines for commuters who can charge daily, as its electric mode covers short trips, but long highway drives fall to 25-27 MPG once the battery depletes. The Lexus TX 350h matches the Highlander’s efficiency but feels more refined, though its higher cost may not justify the 1 MPG gain for budget-conscious buyers.
Efficiency and Performance Trade-Offs
The Highlander Hybrid’s 243 horsepower is enough for daily driving, hitting 0-60 mph in about 8 seconds, but it’s not a speed demon. The Palisade Hybrid’s 329 horsepower feels punchier, accelerating in roughly 6.5 seconds, but its lower MPG means more stops at the pump. Mazda’s CX-90 PHEV offers 323 horsepower in its top trim and a sporty feel, but its gas-only efficiency lags, and the plug-in setup requires charging access to maximize savings. The Lexus TX 350h, with 246 horsepower, performs similarly to the Highlander but adds a quieter cabin, which might tip the scales for those prioritizing comfort over cost.
Quick Comparison Table
Here’s how the 2026 Highlander Hybrid compares to its rivals in key efficiency metrics:
| Model | Combined MPG (FWD/AWD) | Fuel Tank (gal) | Est. Range (miles) | Base Price (est.) | Horsepower |
|---|---|---|---|---|---|
| Toyota Highlander Hybrid | 35 / 34 | 17.1 | 598 / 581 | $43,000 | 243 |
| Hyundai Palisade Hybrid | 30 / 29 | 13.2 | 396 / 382 | $38,000 | 329 |
| Mazda CX-90 PHEV | 27 / 27 (gas only) | 18.5 | 500 / 500 | $40,000 | 323 |
| Lexus TX 350h | 36 / 35 | 17.2 | 619 / 602 | $55,000 | 246 |
Data based on 2025-2026 estimates; MPG and range for AWD where applicable.
Chart: Fuel Efficiency Comparison
To visualize the efficiency differences, here’s a chart comparing combined MPG across these hybrid SUVs:
Which SUV Saves You Most?
The 2026 Highlander Hybrid leads for families who want top fuel economy and long range without the hassle of plugging in, making it ideal for those who drive far or don’t have charging access. The Palisade Hybrid offers more power for less money but burns more fuel. The CX-90 PHEV is best for short commutes with charging, while the Lexus TX 350h edges out slightly in MPG but at a premium price. For budget-friendly efficiency and Toyota’s famed reliability, the Highlander Hybrid is tough to beat. Test drive one starting November 2025 to feel its smooth, wallet-friendly ride.