EV Road Use Tax: Where and How Much in 2025
Electric vehicle (EV) road use taxes have become a significant topic as more consumers opt for electric over traditional gasoline-powered vehicles. With states grappling with diminishing fuel tax revenues, there’s a growing trend to impose specific taxes and fees on EVs. Here’s a breakdown of where these taxes are in place and how much they typically cost.
| State | Annual EV Fee | Additional Notes |
|---|---|---|
| Hawaii | $50 or $8/mile (capped at $50) | Launching mileage-based tax; active from July 2025. |
| Texas | $400 for first 2 years; $200 annually thereafter | Covers registration and highway funding. |
| New Jersey | Up to $290 (2028) | Highest registration fee projected. |
| Colorado | $50 + $12 EV usage fee (increasing annually) | Adjusted fees based on future mileage. |
| North Carolina | $180 | Applies to both hybrid and electric vehicles. |
| Ohio | $200 | This includes a registration renewal fee. |
| Utah | $44.50 for plug-in hybrids, $56.50 for EV | Additional fees may apply based on vehicle class. |
| Pennsylvania | $50 (increasing to $62.50 by 2026) | Specific to EVs, separate from general registration. |
| Kentucky | $120 | New fees starting in 2025. |
| Montana | $130 (≥6,000 lbs), $190 for <10,000 lbs | Permanent registration fees based on vehicle weight. |
| Iowa | $130 | Similar structure based on vehicle weight. |
Current Trends and Implications
- GrowingEV Tax Base: As EVs become more prevalent—accounting for about 3.57 million registered EVs in the U.S. by the end of 2025—states are increasingly worried about lost revenue from declining gasoline taxes. Implementing road use taxes and fees on electric vehicles helps to bridge this gap.
- Diverse Rate Structures: Each state has adopted different structures for these taxes, often influenced by factors like local infrastructure needs, population density, and state budgets.
- Mileage-Based Charging: Some states, like Hawaii, are moving toward mileage-based fees, which means drivers will pay based on actual road usage rather than a flat annual fee. This method aims to fairly allocate road usage costs to all drivers, regardless of vehicle type.
- Incentives vs. Taxes: While many states offer incentives for purchasing EVs, such as tax credits or rebates, the growing taxes can offset these benefits. For example, Hawaii’s new per-mile charge, if adopted statewide by 2033, highlights a significant shift toward user-pay models.
- Registration Fees: States such as Texas impose substantial registration fees that can discourage potential EV buyers despite an environmental commitment. These fees can range from $50 to over $400, depending on the state and vehicle type.
Conclusion
As electric vehicles continue to gain traction on U.S. roads, states are adapting their tax policies to ensure that EV owners contribute to the funding of essential infrastructure. This evolving tax landscape reflects broader concerns about sustainability, financing public projects, and maintaining fairness among all vehicle types. Users considering an EV should be aware of these road use taxes, as they can significantly impact the overall cost of ownership.
From ChatGPT