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The Toyota Highlander is the Japanese answer to the three-row family midsize SUV problem. If you are looking for an SUV that is comfortable and practical for at least five passengers with the occasional use of the third row for kids, the Highlander makes a strong case for itself.
However, with four trims on offer for both the non-hybrid and hybrid, does it really make sense to spend more for the higher trims? Or does the base trim do the job for many? Here is a comprehensive look at the 2026 Highlander XLE and Hybrid XLE, to find out if the entry-level trim is the best bang for your buck.
This article examines the performance, fuel economy and features of the 2026 Toyota Highlander XLE. All information has been sourced from the manufacturer, all prices listed exclude destination fees and any offers; pricing and specs are correct at the time of writing. Automakers reserve the right to update pricing at their own discretion and without notice.
2026 Toyota Highlander: Overview
The fourth generation of the Highlander debuted for the 2020 model year. It was built on the TNGA-K platform, and brought with it some major updates, inside and outside. In 2023, it got the 2.4L inline four-cylinder engine for the non-hybrid model. Ever since then, it has only received incremental updates, where it also got positioned next to the Grand Highlander.
For 2026, Toyota has made all-wheel drive standard across the range and also removed lower trims, making the XLE the entry level trim. This does mean that the base price of the Highlander has gone up quite a lot, but it also means that you get a lot more kit inside and outside for your money.
With the 2027 Highlander being completely new with a battery electric powertrain, this is the last year for this generation. However, the production for the 2027 model will be delayed, so you may have time to get a 2026 model if you prefer the previous design.
"There will be a delay in the start of production of the 2027 Highlander to allow timing for final adjustments prior to launch."
- Toyota Representative
Highlander XLE Engine Options
The 2026 Highlander XLE is available with two engine options - a 265-hp 2.4L four-cylinder non-hybrid engine or a 2.5L four-cylinder with three electric motors for a combined output of 243 hp. The hybrid is paired with a CVT gearbox, whereas the ICE gets a conventional eight-speed automatic transmission. From this year, all-wheel drive is standard across the range. The ICE Highlander is permanent all-wheel drive while the hybrid achieves AWD with an electric motor on the rear axle. The gas-powered Highlander is rated to tow up to 5,000 pounds whereas the hybrid can manage up to 3,500 pounds.
The EPA estimated ratings for the non-hybrid powertrain are 21/28/24 mpg (city/highway/combined). The 2026 Toyota Highlander hybrid XLE AWD benefits greatly in terms of fuel economy, with an estimated 35/35/35 mpg (city/highway/combined). The powertrain options and horsepower figures remain the same no matter what trim you choose, which works in favor of the XLE trim, as it is the cheapest entry point.
Highlander XLE Exterior Features
While the exterior has not changed much since this generation was first launched, it still looks quite modern and rather inoffensive. While it does not have sharp lines and angular design elements like its rivals such as the Kia Telluride and Hyundai Palisade, it still features Toyota's signature grille. You also get LED projector headlights and taillights as well as LED fog lights as standard. The front side windows get solar energy-absorbing glass, whereas you get privacy glass on the rear side, quarter and liftgate windows.
With the XLE trim, you get a plethora of options as standard. Some notable features include:
- 18-inch machined-finish alloy wheels
- Power tilt/slide moon roof with sunshade
- Auto-dimming rearview mirror with HomeLink universal transceiver
- Height-adjustable hands-free power lift gate with jam protection
- Silver-painted roof rails
In terms of driver-assistance features, both the hybrid and non-hybrid get the same suite of features.
- Toyota Safety Sense 2.5+
- Pre-collision system with pedestrian detection
- Lane departure alert with steering assist
- Automatic high beams
- Road sign assist
- Blind-spot monitor with rear cross-traffic alert
The exterior does not change much with each trim level, apart from the rim size. While the higher trims get larger 20-inch rims, the 18-inch wheels provide a better ride quality, especially for longer distances.
Highlander XLE Interior Features
The interior is modern and still retains physical buttons for quick controls. The central infotainment is 8-inches as standard, with an option to upgrade to the bigger 12.3-inch screen for $735. That may be one of the biggest caveats with the XLE trim, where all the higher trims get the bigger screen as standard. To get Toyota's latest software, you have to upgrade to the bigger screen as well, although wireless Apple CarPlay and Android Auto are standard. The XLE also gets the 12.3-inch digital gauge cluster as standard. However, the XLE trim misses out on the upgraded JBL sound system.
Nevertheless, the front row has plenty of space with good material usage. The second row can be made into a bench seat at no extra cost to seat a total of eight passengers. However, the third row is tight and is only good enough for kids at best. Some more notable features in the interior on the XLE trim are:
- Qi-compatible wireless charging
- SofTex-trimmed front and second-row seats with heated front seats
- 10-way power adjustable driver's seat including power lumbar support
- 8-way power-adjustable front passenger seat
Highlander Hybrid XLE: What Do You Get For Around $2,000 More?
The 2026 Toyota Highlander Hybrid XLE is relatively identical to the non-hybrid XLE. Mechanically, the hybrid gets a CVT gearbox whereas the ICE gets an eight-speed automatic. The hybrid is also rated to have a lower towing capacity, at 3,500 lbs. While the ICE produces more power on paper, the instant torque from the electric motors should negate any disparity in performance.
The biggest upside of the hybrid system is the increase in fuel economy. The hybrid system is significantly more frugal in the city and on the highway, which is a bonus for people living in urban areas. If you drive a lot and want the highest mileage between fuel stops, the hybrid is a worthy upgrade, especially considering that the next hybrid trim is $4,455 more, which is the Hybrid Limited trim.
Verdict: Is The Highlander XLE A Compromise Or The Sweet Spot?
The 2026 Highlander XLE starts at $46,270 for the ICE powertrain, while the Hybrid XLE has an MSRP of $48,020. With the removal of the LE trim, the XLE offers more kit as standard at a higher starting point. If you plan to tow with the car, the ICE powertrain makes more sense. However, for everybody else, the increase in fuel efficiency will be appreciated courtesy of the hybrid system.
The exterior is largely the same across all trims, which means opting for the base trim means you are not missing out on high-end technology. The interior quality and fit and finish also remain the same. However, you do miss out on leather upholstery.
One of the best options to pick is the upgraded touch screen for $735. In our opinion, the bigger screen is better for day-to-day use and should be more future-proof with its latest software. Apart from that, the interior also remains largely the same. You miss out on a HUD, leather trims, a panoramic sunroof and a JBL sound system on the XLE, which you get as standard on the higher trims.
The XSE trim gets sportier suspension tuning, and is only available on the non-hybrid powertrain. The Limited trim adds leather upholstery, larger rims and a better sound system. The top of the range Platinum trim adds a HUD and a panoramic glass roof. If you feel like none of these extras are deal-breakers, the XLE trim gets you enough kit that it does not warrant the need to upgrade unnecessarily.
The XLE trim offers enough standard kit to justify the increase in price and removal of the base trim. Its biggest rival continues to be its bigger brother based on the same platform, the Grand Highlander, with even more space. If you are looking for an SUV for mainly five people with a third row for kids, the Highlander is a compelling proposition and the XLE trim offers enough essentials without feeling the need to upgrade to the higher trims.
Sources: Toyota, EPA
FAQ
Q: What is the cost of a 2026 Toyota Highlander XLE?
The base MSRP of the Highlander XLE is $46,270. The Highlander Hybrid XLE starts at $48,020.
Q: Is Toyota making a Highlander in 2026?
Yes, this is the last year for the fourth-generation Highlander, with the 2027 Highlander being a major update to the platform.
Q: Is Highlander XLE or XSE better?
The XLE trim is the entry level trim that offers better value for money. The XSE trim is $2,070 more and gets blacked out trim with sportier suspension tuning.
Q: Is the 2026 Highlander any good?
The 2026 HIghlander is good for people looking for an SUV with the occasional use of the third-row for kids. It gets more tech as standard as well as AWD on the base XLE trim.
