EV owners could pay $471 a year just to register their car in proposed bill

Illinois eyes a big EV fee increase

An Illinois lawmaker wants to more than triple the fee that electric vehicle owners pay to register their cars. State Sen. Ram Villivalam, a Chicago Democrat, filed Senate Bill 3566 on Feb. 5, 2026.

If it passes, EV owners would pay a $320 annual surcharge starting July 1, 2027, up from the current $100. Add the standard $151 registration fee, and the total annual cost would climb to at least $471.

EV owners already pay more than gas drivers

Right now, all Illinois vehicle owners pay a standard $151 annual registration fee. EV owners pay an extra $100 on top of that, bringing their total to $251 a year.

Under Senate Bill 3566, that surcharge jumps to $320, pushing the total to at least $471. That is a jump of $220 a year over what EV owners pay today.

Why EVs get a surcharge at all

Illinois funds road repairs partly through its state gas tax. EV owners skip the pump, so they never pay into that fund.

The state created the $100 EV surcharge back in 2019 as part of a broader infrastructure package to close that gap. The money goes into the Illinois Road Fund, which pays for road maintenance across the state.

Drivers could pay by the mile instead

Senate Bill 3566 does not just raise the flat fee. It also gives EV owners a way out.

Under a new Road Usage Charge Program, drivers could choose to pay 1.5 cents per mile instead of the flat $320. Those charges cap at $320 per year, matching the flat surcharge.

Drivers who do not put many miles on their car each year could end up paying less. Participants would need to report their mileage regularly.

The fee would grow with inflation each year

Starting July 1, 2028, the surcharge would not stay frozen at $320.

The bill ties it to the Consumer Price Index, meaning the flat fee and the per-mile rate could rise automatically every year. The size of any increase would track the prior year’s inflation rate.

Both the flat fee and the mileage-based option would adjust together, as outlined in the full text of Senate Bill 3566’s CPI adjustment provisions.

Illinois would leapfrog every other state

Right now, Michigan holds the top spot for EV-specific surcharges in the country, at $267 a year, according to the Michigan Secretary of State’s current EV registration fee schedule. Illinois’s proposed $320 surcharge would pass that.

About 40 states charge some kind of special EV registration fee. The national average sits near $100, and most state fees fall somewhere between $50 and $290.

Missing payments could cost you your registration

EV owners who join the mileage program and skip reporting or fall behind on payments could face penalties. Tampering with mileage reporting devices would also carry consequences.

The Secretary of State could put a hold on a vehicle’s registration for unpaid charges. A hold would block the owner from renewing until the balance is cleared.

How EVs stack up against gas cars

Illinois doubled its state gas tax from 19 cents to 38 cents per gallon in 2019.

A driver putting about 12,000 miles a year on a car that gets 25 miles per gallon would burn roughly 480 gallons. At the current tax rate, that driver pays about $182 a year in state fuel taxes.

Under the proposed $320 EV surcharge, an EV owner would pay noticeably more. Supporters of the bill say the fee ensures all drivers share in keeping roads in shape.

Illinois still offers cash back for buying an EV

The state’s EV rebate program is still open, and the fee increase does not touch it.

The Illinois EPA’s Electric Vehicle Rebate Program offers up to $4,000 for qualifying low-income buyers, with other eligible buyers receiving up to $2,000, and the application window runs through May 31, 2026.

The rebate covers new and used all-electric vehicles bought from Illinois-licensed dealers. The rebate program runs on separate funding from the registration fee system.

The bill has a long road ahead

Senate Bill 3566 has been sent to the Senate Assignments Committee, but no hearing date is set as of March 2026. The bill lists no co-sponsors.

Villivalam chairs the Senate Transportation Committee.

Before it could become law, the bill must clear committee, pass the full Senate, move through the House, and earn the governor’s signature. Only then would EV owners see any change.

More states are moving in this direction

Illinois is not alone. By mid-2025, 39 states had adopted some form of special EV registration fee.

States like Oregon and Utah are already testing pay-per-mile programs. The push comes as gas tax revenue shrinks because more drivers switch to electric vehicles.

Some states, including Michigan, now index their EV fees to inflation or fuel tax changes. The national trend points toward higher EV costs for drivers, not lower ones.

What EV owners should watch for

If the bill passes as written, the new $320 surcharge would apply to registrations on or after July 1, 2027. The annual inflation adjustments would follow one year later, starting July 1, 2028.

Illinois EV owners would see no change unless the bill clears the full legislative process and the governor signs it. No committee hearing has been scheduled as of March 2026.

This article was created with AI assistance and human editing.

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