One of the most common concerns we hear about electrification of vehicles is that, because EV’s don’t use gas, they don’t pay gas taxes and therefore do not pay their share of road construction and maintenance. In most states, this is no longer true. By early 2026, at least 41 states have adopted special registration fees for battery-electric vehicles, and 34 of those states have also applied fees to plug-in hybrids or other hybrid vehicles.

Minnesota EV owners will soon pay higher road-use fees. Beginning in January 2026, annual registration surcharges for battery-electric vehicles will rise from the current flat $75 fee to at least $150, with many owners paying more based on vehicle age and MSRP. Plug-in hybrids will also face revised, lower fees.

Starting in 2027, EV drivers will also pay an added electricity tax at public fast-charging stations.

The changes, passed by the Minnesota Legislature in June 2025, are intended to help fund road maintenance as more drivers shift away from gasoline vehicles and pay less in gas taxes. They also raise questions about affordability, fairness, and whether the state is encouraging or discouraging cleaner transportation choices.

How the new EV surcharge is calculated

Minnesota’s new EV surcharge will vary by vehicle value and age rather than charging every EV owner the same amount. The formula mirrors the state’s registration system, with newer and more expensive vehicles generally paying more.

Battery-electric vehicles will pay 0.5% of adjusted MSRP each year, while plug-in hybrids will pay 0.25%. The adjusted MSRP declines as the vehicle ages, from 100% in year one to 10% for vehicles 10 years and older.

As a result, newer EVs will generally face higher surcharges, while fees for older EVs will decline over time. Even so, many EV owners will pay more than the former $75 flat fee.

What Minnesota EV drivers may pay

The new system can result in annual EV fees that are higher than the average state gas tax paid by drivers of comparable gasoline vehicles. This is especially true for newer EVs and larger electric models such as SUVs and pickup trucks. Below are comparison gas tax vs EV fees based on a study by Drive Electric Minnesota.

Example Gasoline Vehicle Taxes in Minnesota:

  
    Vehicle Category
    Example gas vehicle
    Average gas tax
    Average gas taxes paid over 7   years
  
    Sedan
    Toyota Corolla
    $127/year
    $889
  
    Compact SUV
    Nissan Rogue
    $143/year
    $1,001
  
    SUV
    Honda Pilot
    $202/year
    $1,414
  
    Pickup truck
    Ford F-150
    $211/year
    $1,477

Average Gas Tax Paid Over 7 Years: $1,195

Example Electric Vehicle Fees in Minnesota:

  
    Vehicle Category
    Example Battery-Electric Vehicle
    Annual EV Fee in Year 1
    Average EV Fee Paid Over 7 Years
  
    Sedan
    Tesla Model 3
    $221/year
    $1,204
  
    Compact SUV
    Kia Niro EV
    $198/year
    $1,078
  
    SUV
    Kia EV9
    $275/year
    $1,498
  
    Pickup truck
    Ford F-150 Lightning
    $325/year
    $1,771

Average EV Fees Paid Over 7 Years: $1,388

Additional share of road taxes paid by the average Minnesota EV driver:

16% Annually

As we explored in an earlier post, the question no longer is if EV drivers are paying their fair share for roads. It is “Are they paying too much”? Local, regional, and state policies focused on EV fees should be carefully designed to ensure EV users support our communities infrastructure costs while making sure we do not inequitably burden EV drivers.