Did Toyota Just Make the Highlander Irrelevant?

Toyota has reshuffled the Highlander lineup, dropping the old base trim and making all-wheel drive standard. The result: the midsize SUV now carries a higher starting price than ever before. That alone might raise eyebrows, but the real head-scratcher is how the Highlander now overlaps with the larger Grand Highlander and sits above many of its rivals on the price ladder.

A $5,000 Jump

For 2026, the Highlander lineup starts at $46,765 for the XLE AWD. That’s nearly $5,000 higher than last year’s LE FWD trim at $41,815. With the LE gone, there’s no longer a budget-friendly entry point. The XLE does add more equipment, and the standard AWD brings peace of mind for buyers who tow or drive in rougher climates, but the leap in starting price changes the Highlander’s positioning entirely. To be fair, trim-for-trim increases are only a few hundred dollars.

The Grand Highlander Pricing Paradox

Here’s the part that makes less sense: the larger Grand Highlander is actually cheaper. Its base price is $41,360, and even an AWD version comes in at $42,960. Although it also underwent a price increase for the 2026 model year, the big brother still undercuts the Highlander by $3,800 while offering more room for passengers and cargo. Even when you move up to the XLE trim, the difference is barely there, with the Grand Highlander XLE AWD costing just $460 more than the Highlander XLE AWD. With the sales numbers heavily favoring the bigger model already, Toyota may have created a situation where customers find little reason to stick with the regular Highlander.

Does It Still Have Rivals Left?

Looking outside Toyota’s lineup, the Highlander also finds itself priced above many competitors. A Kia Telluride with AWD starts at $38,390, the Hyundai Palisade AWD begins at $41,435, the Mazda CX-90 comes in at $38,800, and the Honda Pilot with AWD starts at $42,300. That means the Highlander costs more than its rivals and even more than the larger Grand Highlander. SUV buyers tend to be value-conscious, and a gap this wide could make the Highlander feel redundant. Unless Toyota has something else up its sleeve – which we hope isn't another price hike on the Grand Highlander – the 2026 Highlander seems to be the awkward middle child of the three-row SUV market.