The Cost of Driving Electric Just Went Up in 40 States

The Free Ride Is Over

For years, electric car owners drove past gas stations—and the taxes that came with them. That free ride is ending fast.

In 2026, 40 states are now charging EV drivers extra fees just to register their cars. Michigan just became the most expensive state in the country. Hawaii started tracking odometers. Oregon wants to charge drivers for every mile they travel.

The gas tax system that built American highways is running out of money, and EV owners are being asked to pay their share—sometimes more than gas car drivers already do.

Michigan Charges $267 Per Year

Michigan EV owners got a shock when they renewed their plates in January 2026.

Annual registration fees for light-duty EVs jumped from $160 to $267, while plug-in hybrid fees went from $60 to $113.

The fee hike makes Michigan the most expensive among 40 states that charge a special EV registration fee. Hawaii and South Dakota have the lowest fees at $50 per vehicle, while the national average is a little over $100.

The increase came from a road funding deal passed last fall that barely touched gas-powered drivers but triggered a 2015 law tying EV fees to gas tax rates.

The Gas Tax Funds American Roads

The federal gas tax sits at 18. 4 cents per gallon for gasoline and 24.4 cents for diesel. Every state has an additional tax on motor fuels, with many state taxes set at higher rates than the federal gas tax.

That money flows into the Highway Trust Fund, which pays for highway construction, bridge repairs, and road maintenance across the country.

The Federal Highway Administration receives the bulk of HTF revenue, with the federal government providing approximately 25% of public spending for highway infrastructure across the nation.

Congress Has Not Raised It Since 1993

The federal gas tax has not changed since Bill Clinton sat in the White House. Congress last changed the gas tax in 1993, increasing it from 14 to 18.3 cents.

Because the gas tax is not tied to inflation, it loses purchasing power over time. The gas tax lost approximately 73% of its purchasing power to inflation.

Road construction costs have skyrocketed while the tax stayed flat, leaving highway budgets squeezed from both ends.

What once built interstates now struggles to patch them.

EVs Use Roads But Skip the Pump

Electric vehicles drive on the same highways as everyone else but pay nothing at the gas pump. Like other vehicles, electric vehicles may use federally funded roads.

Unlike other vehicles, EVs do not consume gasoline or other fuels, and thus do not incur federal fuels taxes.

Today, EVs are responsible for just over 2 percent of miles traveled in the U.S. That share is small now, but it is growing.

Lawmakers argue that every EV on the road widens the gap between what highways cost and what drivers are paying for them.

The Trust Fund Could Go Broke by 2028

The math is getting worse. The trust fund has been taking in less revenue than it has been spending for the last 20 years.

The latest Congressional Budget Office projection estimates the HTF will be drained by 2028 and reach a cumulative funding deficiency of more than $240 billion by 2033.

Such transfers have shifted a total of $275 billion to the fund since 2008, including $118 billion authorized in the Infrastructure Investment and Jobs Act in 2021.

Texas Hits New EV Buyers With $400

Some states are not waiting for Congress to act. Texas charges $400 for new EV registrations and $200 for renewals.

That upfront cost lands on top of standard registration fees and makes Texas one of the harshest states for first-time EV buyers.

This creates a disproportionate cost for EV drivers, particularly those who drive fewer miles, as the flat fee structure fails to account for actual road usage.

Pennsylvania Raises Fees to $250 in 2026

Pennsylvania is bumping its EV registration fee from $200 to $250 for 2026. The registration fee will be indexed to inflation for subsequent years.

Likewise, annual plug-in hybrid registration models will cost $62.50 next year, which is also adjusted for inflation.

Starting in July 2026, PennDOT will also allow monthly payment plans for EV and plug-in hybrid owners.

Pennsylvania shows where most states are headed: fees that rise automatically and payment systems designed to make the costs feel routine.

Hawaii Now Charges by the Mile

Hawaii became the first state to require EV owners to pay based on how far they drive. The new road usage charge in Hawaii is $8 per 1,000 miles and is capped at $50.

Odometers will be read and recorded each year during annual vehicle inspections.

Hawaii’s road usage charge will become mandatory starting July 1, 2028, at which point the $50 flat fee will be discontinued.

The state plans to expand the program to all vehicles by 2033, replacing gas taxes entirely with mileage-based fees.

Oregon Wants 2.3 Cents Per Mile

Oregon is moving to follow Hawaii with mandatory per-mile fees.

Starting in 2027, EV owners would pay around 2.3 cents per mile, and plug-in hybrids would be phased in by mid-2028.

Alternatively, drivers could choose a flat annual fee of about $340.

Drivers would have several options for reporting mileage to private contractors, including a smartphone app or the vehicle’s telematics technology.

Privacy advocates have raised concerns, but Oregon says it deletes mileage data 30 days after payment.

Critics Say Flat Fees Punish EV Owners

Not everyone agrees that current EV fees are fair. Per-mile systems fix that imbalance, but they require tracking that makes some drivers uneasy.

The nonprofit Ecology Center estimates that Michigan EV owners were already paying about $20 more than gas-powered vehicle owners annually in transportation-related taxes.

A flat $200 to $250 EV fee exceeds what the average gas driver pays in federal gas tax alone. The problem is that flat fees charge a retiree who drives 5,000 miles the same amount as a salesperson driving 25,000.

Most EV Owners Are Not Switching Back

Despite rising fees and the end of the $7,500 federal tax credit, most EV drivers say they are sticking with electric.

Karl Bloss, a longtime EV owner in Muskegon, predicted the fee hike will not drive any EV owners back into gas cars, but it might prompt EV-curious buyers to stick with gas for a little longer.

Refueling an EV still costs less than half the price per mile of gasoline, and there are no oil changes or belt replacements.

The math still works for most owners. But for people thinking about making the switch, the financial picture just got more complicated.

Learn About EV History in Kingman, Arizona

Kingman sits along historic Route 66 and is home to the Route 66 Electric Vehicle Museum, which traces the history of electric cars from the 1800s to today.

The museum features vintage EVs, early charging technology, and exhibits on how electric vehicles nearly dominated American roads before gasoline took over.

It is located inside the Powerhouse Visitor Center at 120 W. Andy Devine Avenue.

Admission is $6 for adults. The museum is open daily from 9 a.m. to 5 p.m., and you can combine your visit with the Route 66 Museum in the same building.

This article was created with AI assistance and human editing.

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