Toyota has announced pricing for five levels of the all-new 2010 Toyota Prius, starting at $21,000, plus $750 in destination charges. The base version will reach the market well after the Prius goes on sale in May, giving Toyota a model priced to compete with the smaller 2010 Honda Insight currently on sale for about $20,000. Toyota hasn’t announced yet what features will be on the base Prius, so we don’t know how that version will be equipped.

Expected to be the volume seller, the second level Prius will start at $22,000, matching the base price of the current model. However, all 2010 Prius models will come with a larger, more powerful 1.8-liter engine that will deliver 134 horsepower, an increase of 24 over the previous generation. EPA fuel economy estimates rise to 51 mpg city, 48 mpg highway and 50 mpg combined. Other standard features include a driver’s door Smart Key with push button start; EV, Eco, and Power modes; tilt-and-telescoping wheel with audio and climate controls; and six-way adjustable driver’s seat. Safety features will include seven air bags, including a driver knee air bag, and active front headrests. And stability control, a recommended feature that Honda offers only on the top-level Insight EX.

The third level Prius, which will be priced at $23,000, will add a CD changer and integrated satellite radio, plus Bluetooth connectivity.

The fourth level will be priced at $25,800, and it will include a three-door Smart Key system, leather interior, heated front seats, and driver and front passenger water repellent windows.

The top-of-the-line Prius will have an MSRP of $27,270 and will come with larger 17-inch wheels, LED headlights, and integrated fog lights.

Optional equipment will include a navigation package available on the third, fourth, and fifth level models for $1,800, and a solar roof package available on the third and fourth models for $3,600. An advanced technology package, which will includes the navigation package plus dynamic cruise control, lane assist, parking assist, and a pre-collision system for an additional $4,500 on the top of the line model. The total range, therefore, will span from $21,750 to about $32,500.

Last month, there were reports about a possible Prius price cut in Japan and now there is word that the outgoing model may see notable incentives as dealers prepare for the new Prius. Aggressively priced, the new Prius promises strong sales competition between it and the Insight.

For more information, see our Toyota Prius preview.

--Liza Barth