EV Registration Fees Are Rising in 2026 — And Congress Wants to Add a Federal One
Quick Answer
Most U.S. states already charge EV owners an annual registration surcharge meant to replace the gas-tax revenue they don't pay at the pump — 41 states in total, with a median fee of roughly $150 a year, according to state-by-state tracking updated in June 2026. Several states raised those fees specifically for 2026: Michigan's jumped from $160 to $267, Pennsylvania's from $200 to $250, and Tennessee's is scheduled to climb to $274 in 2027. On top of that, Congress is moving a federal EV fee of its own. The BUILD America 250 Act would add a $130-a-year federal charge for EVs and $35 for plug-in hybrids, starting October 1, 2026 if it becomes law. The bill cleared its House committee by a 62-2 vote in May and is now waiting on a full House floor vote, with the Senate yet to release its own version.
Written by Morgan Ellis, Editor at GearUp Insights | About the Editor | Last reviewed: July 23, 2026
Which States Raised EV Registration Fees for 2026
EV registration surcharges aren't new — most states adopted them years ago specifically to recover the highway funding that EV owners don't contribute through gas taxes. What's new in 2026 is how many states are raising those fees, switching to inflation-indexed formulas, or adding weight-based tiers that push costs even higher for larger EVs and trucks.
| State | Prior EV Fee | 2026 EV Fee | Notes |
|---|
| Michigan | $160 | $267 | Weight surcharge can push light-duty EVs to $367; part of a broader road-funding law |
| Pennsylvania | $200 | $250 | Now inflation-indexed annually; monthly payment plan introduced July 2026 |
| Tennessee | $200 | $200 (rising to $274 in 2027) | Inflation-adjusted after 2027 |
| New Jersey | — | — | Scheduled to reach $290 by 2028 |
| National median (41 states with a fee) | — | ~$150 | 9 states currently charge no additional EV fee |
Plug-in hybrids are typically charged less than full battery-electric vehicles, but they're not exempt: Michigan's PHEV fee nearly doubled too, from $60 to $113 (or $183 for heavier vehicles), and Pennsylvania's PHEV fee rose from $50 to $62.50.
The Federal Fee Bill: Where It Actually Stands
Separate from anything states are doing, Congress is working through its own EV fee as part of a much larger transportation package. The BUILD America 250 Act — a $580 billion, five-year reauthorization of federal highway and transit funding — includes a provision requiring the Federal Highway Administration to collect an annual fee of $130 for battery-electric vehicles and $35 for plug-in hybrids, starting October 1, 2026, if the bill becomes law. Both amounts would rise by $5 every two years starting in 2029, capping out at $150 for EVs and $50 for plug-in hybrids.
The bill has bipartisan backing: the House Transportation and Infrastructure Committee approved it 62-2 in late May. It's now waiting for a vote on the full House floor, and the Senate hasn't released its own version of the reauthorization yet. Timing matters here — the current federal transportation law expires September 30, 2026, which puts pressure on Congress to move something before then, though a final House-Senate compromise on the EV fee specifically could still take longer.
The stated reason for the fee is straightforward: the Highway Trust Fund, financed mostly by an 18.4-cent-per-gallon federal gas tax, faces a projected $138 billion shortfall through 2036 and could become insolvent by mid-2028. EV and hybrid owners drive on the same roads without paying that tax. The Congressional Budget Office scored the fee as raising about $17 billion over 10 years, though it estimates the net revenue gain is closer to $12 billion once other tax effects are factored in.
GearUp Takeaway
This federal fee is not law yet — treat it as a real possibility for late 2026, not a certainty. If you're weighing an EV purchase right now, budget for your state's existing fee, which is already locked in, and treat the extra $130 a year as a plausible add-on starting as early as October rather than a guaranteed cost. In a state like Michigan, stacking the state and proposed federal fee would put combined annual EV charges just under $400 — worth factoring into your ownership math alongside the now-expired federal purchase tax credit.
What This Means for Your Ownership Math
Registration fees are a small line item compared to financing, insurance, or charging costs, but they're moving in one direction only, and they're compounding with other changes this year. The federal EV purchase tax credit expired earlier in 2026, and now the annual cost of simply owning and registering an EV is rising too — through both state increases and a potential new federal layer.
Proponents of the fees argue this is basic tax fairness: gas car owners already pay federal and state gas taxes every time they fill up, and that revenue funds the roads everyone drives on. Critics counter that stacking a new federal fee on top of the 41 states that already charge their own EV surcharge could push combined annual costs for EV owners above what a comparable gas car owner effectively pays in gas taxes over a typical year — narrowing some of the running-cost advantage that makes EVs attractive in the first place.
Either way, the fee doesn't change the underlying math on fuel and maintenance savings that still favor EVs and hybrids at higher annual mileage — it's a fixed add-on, not a variable cost tied to how much you drive. But it's one more line item worth checking before you buy, especially if you live in a state that's already raised its fee this year.
Things to Watch Next
- The House floor vote. The bill has cleared committee but still needs to pass the full House before it can move to conference with the Senate.
- The Senate's own transportation bill, which hadn't been released as of this writing — it may or may not include a matching EV fee provision.
- The September 30, 2026 deadline when current federal transportation authorization expires, which creates pressure for Congress to act one way or another.
- Your own state's fee schedule, since several states, including Tennessee and New Jersey, have already-scheduled increases landing in 2027 and 2028 regardless of what Congress does.
Our Take
Combined with the expiration of the federal EV tax credit earlier this year, this is part of a broader shift in 2026: the incentives that made EV ownership cheaper are fading, and the costs that make it more expensive are showing up instead. None of this erases the fundamental fuel-cost and maintenance advantages of EVs and hybrids over gas cars — but it does mean the gap is narrower than it was even a year ago, and it's worth re-running your own numbers before assuming an EV is the cheaper choice by default.
Sources
- H.R.8870, BUILD America 250 Act, 119th Congress — congress.gov
- National Association of Counties, legislative analysis of the BUILD America 250 Act, July 2026 — naco.org
- American Highway Users Alliance, CBO score of EV/PHEV fee provisions, July 2026 — highways.org
- Committee for a Responsible Federal Budget, "Proposed EV Fee Could Raise $30 Billion," May 2026 — crfb.org
- GreenCars, "A Proposed Federal EV Fee Is Heading to the House Floor," 2026 — greencars.com
- EV Registration Fees by State, state-by-state fee tracker updated June 6, 2026 — costtocharge.com
- FinanceBuzz, "12 States That Charge The Highest Fees for Owning an EV," 2026 — financebuzz.com
- SlashGear, reporting on Michigan's 2026 EV registration fee increase — slashgear.com
- Spectrum News NC, "What the BUILD America 250 Act Means for NC," July 15, 2026 — spectrumlocalnews.com
This article is for educational purposes only and is not financial or legal advice. The federal EV fee described here is a legislative proposal, not current law, and its details could change before any final vote. Figures referenced are current as of July 23, 2026.