More States Add Road Use Fees for Electrics


Most Texas drivers pay fuel taxes at the pump to help pay part of the cost of our highways.  Drivers of electric vehicles use the same roads but don’t pay the fuels tax. 


And while electric vehicles (EVs) currently make up a small percentage of all vehicles on Texas highways, the number is expected to dramatically increase over the coming decade.  It will be increasingly important that electric vehicle owners pay their approximate fair share of road construction and maintenance costs.


While electric and plug-in hybrid vehicles comprise less than 2% of new vehicles sales, automotive manufacturers are gearing up to build many more in the coming years. As they hit the road the result will be continuing downward pressure on gas and diesel tax revenues. Nationally fuel tax purchasing power per mile driven is about 70% less than it was 15 years ago because of construction cost inflation and fuel-efficiency gains.


Texas has already seen that with higher gas mileage standards and the advent of alternative-fuel vehicles the gas tax is not able to fund transportation in the way it did in the 20th Century.



While fee proposals have been introduced in the Legislature in recent sessions, Texas has not yet given serious consideration to legislation that would add fees for electric vehicles or plug-in hybrids (PHEVs).

In 2020 an increasing number of states are charging new or higher registration fees on owners of electric vehicles.  States imposing new annual EV fees this year are Ohio - $200, Alabama - $200, Kansas - $100, and Hawaii - $50.

Twenty states impose additional fees on electric vehicles ranging from $50 per year to $200 per year.  Here is a list of some of the states with EV fees in addition to traditional vehicle registration fees:

Ohio:  $200 per year for EVs
Alabama:  $200 per year for EVs
Kansas:  $100 per year for EVs
California: $100 annual fee for a zero-emissions vehicle. Starting in January 2021, annual increases will be indexed to the consumer price index.

Colorado: $50 annual fee for full-electric and plug-in hybrid vehicles.
Georgia: $200 annual license fee for “noncommercial alternative fueled vehicles,” including EVs, but not PHEVs.
Idaho: $140 annual fee for EVs; it’s $75 for PHEVs.
Illinois: $100 annual fee for EVs.
Indiana: $150 annual fee for EVs; it’s $50 for hybrids and PHEVs.
Michigan: $135 annual fee for non-hybrid electric vehicles weighing less than 8,000 pounds; it’s $235 for those weighing more than 8,000 pounds. The state charges hybrid owners an extra $47.50 and PHEV drivers an added $117.50.

Minnesota: $75 annual fee on EVs.
Mississippi: $150 fee on EVs and a $75 fee on hybrids. Fees will be indexed starting in 2021.
Missouri: $75 annual fee on EVs, and $37.50 on PHEVs.
Nebraska: $75 annual fee on alternative-fuel vehicles, including EVs.
North Carolina: $130 on plug-in vehicles, including EVs.
Oregon: $110 annual fee on PHEVs.
South Carolina: $120 biennial fee for EVs

; it’s a $60 biennial fee for hybrids.

Tennessee: $100 annual fee for EVs.
Utah: $90 annual fee for EVs and $120 in 2021. Hybrids are assessed a $15 fee that rises to $20 in 2021. It’s currently a $39 annual fee for PHEVs. Starting in 2022 increases will be indexed to the consumer price index.
Virginia: $64 annual license for EVs.
Washington: $150 annual fee for EVs.
Wisconsin: $100 annual fee for EVs.