Toyota RAV4 vs. Highlander: The Best SUV for 2027

Choosing the right SUV for your family often comes down to finding the perfect balance of space, versatility, comfort, and capability. That's where two of Toyota's most popular SUVs, the RAV4 and Highlander enter the conversation. Both have earned a reputation for reliability, safety, and long-term value, but for 2027 they're more different than ever: the RAV4 continues as a hybrid compact SUV, while the Highlander has been completely reinvented as Toyota's first all-electric three-row SUV. Every Highlander sold in the U.S. has had a gas engine since 2000, this is a genuinely new chapter for the nameplate, not just a refresh.

From everyday commutes and weekend adventures to road trips and family hauling, each SUV brings something different to the table. Here's how they actually compare.

RAV4 vs. Highlander at a Glance

Size and Seating: Two Rows vs. Three Rows

Toyota RAV4: The RAV4 remains a compact SUV with two rows of seating for up to 5 passengers. The second row offers solid legroom for adults and teenagers, making it a great fit for smaller families, couples, or solo adventurers who want room for gear without driving something huge.

Toyota Highlander: The redesigned Highlander steps into a new segment entirely as a three-row electric SUV. It seats up to 7, with second-row captain's chairs standard and a bench seat available if you need that seventh spot. The EV architecture actually stretches the wheelbase by more than 8 inches compared to the outgoing gas model, since there's no engine up front to package around, so the extra interior space isn't just marketing, it's a real structural benefit of going electric.

Powertrain, Efficiency, and Towing

Toyota RAV4: The RAV4 dropped its gas-only engine option in its most recent redesign and is now hybrid and plug-in hybrid exclusively. The standard hybrid makes 226 horsepower with front-wheel drive or 236 with all-wheel drive and returns up to 43 mpg combined, among the best in its class. The plug-in hybrid delivers 320 horsepower and up to 50 miles of electric-only range. Towing capacity actually improved: FWD models now tow up to 1,750 lbs (up from 1,500), and AWD models hybrid or plug-in, tow up to 3,500 lbs.

Toyota Highlander: This is the big one. The 2027 Highlander is fully electric, with no gas or hybrid option at all. The base XLE runs a single front motor making 221 horsepower, while dual-motor AWD models jump to 338 horsepower with up to 320 miles of range on the larger battery. Here's the trade-off worth knowing towing capacity is now tied to battery size, topping out at 3,500 lbs with the larger 95.8-kWh battery and dropping to 2,600 lbs with the smaller 77-kWh pack. That's actually a step down from the outgoing gas Highlander's 5,000-lb rating, and it means the RAV4's AWD towing capacity now essentially matches the Highlander's at the top end, which wasn't the case before.

Cargo Space and Daily Footprint

Toyota RAV4: Still the easier vehicle to park and maneuver day to day, with up to 37.8 cubic feet of cargo space behind the second row, plenty for luggage, groceries, or a couple of large dogs, in a footprint that fits into tight city spaces and crowded lots.

Toyota Highlander: The Highlander still offers more total space with the rear seats folded, and the longer wheelbase helps second and third-row comfort. With all three rows in use, cargo space behind the third row is tighter. Toyota prioritized passenger room over maximum cargo volume in this generation, so if you regularly need both seven seats and a full cargo area at the same time, it's worth measuring your specific gear against the spec sheet.

Which SUV Is Right for You?

You should choose the Toyota RAV4 if:

You rarely need to transport more than 4 or 5 people.

You want strong efficiency without adopting a full EV lifestyle. The hybrid and plug-in hybrid options give you flexibility.

You live in a city or deal with tight parking and want a maneuverable SUV.

You want a capable daily commuter that's equally at home on weekend trips.

You should choose the Toyota Highlander if:

You genuinely need three rows and seating for up to 7.

You're ready to go fully electric and want up to 320 miles of range.

You want the latest Toyota tech. A 14-inch touchscreen, 12.3-inch digital gauge cluster, and vehicle-to-load power for camping or emergencies.

You still need to tow occasionally (up to 3,500 lbs with the larger battery), just not at the outgoing model's level.

FAQ

Is the 2027 Toyota Highlander still available with a gas engine?

No. For 2027, the Highlander drops gas and hybrid entirely and is offered exclusively as a battery-electric vehicle, a first for the nameplate.

How much can the 2027 Highlander tow?

Up to 3,500 lbs with the larger 95.8-kWh battery, or 2,600 lbs with the standard 77-kWh battery, lower than the outgoing gas model's 5,000-lb rating.

Does the 2027 RAV4 still come with a gas-only engine?

No. The RAV4 is hybrid and plug-in hybrid only, with no traditional gas-only option.

How many people can the 2027 Highlander seat?

Up to 7, with second-row captain's chairs standard and an optional second-row bench seat for that seventh spot.

Which has better towing capacity, the RAV4 or the Highlander?

They're now much closer than before. AWD RAV4 models tow up to 3,500 lbs, matching the Highlander's max rating with its larger battery, a real shift from the gas-Highlander era, when it towed far more than the RAV4.

Experience Them Both in Person

Sometimes, the best way to choose is simply to sit in them. Bring the whole family down to the dealership, load up the kids, test the cargo space with your actual stroller, and take both of these Toyotas for a spin, including a first look at what an all-electric Highlander actually feels like to drive.

Give us a call or stop by the showroom today to see our incredible selection of RAV4 and Highlander models!