Why Are EVs More Expensive to Register in Some States?

As EVs become more prevalent across the U.S., states may have to make up for lost gas tax revenue by imposing high EV registration fees.

Elliot Rieth | 

Jun 24, 2024 | 3 min read

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A majority of states impose these additional registration fees on EVs to make up for the corresponding drop these vehicles represent in fuel tax, so that all vehicles using public roads are paying into infrastructure support.

States With Electric Vehicle Registration Fees

There are currently 32 states that require additional registration fees from EV drivers. Some of those states also have an EV registration fee of $200 or more in addition to base vehicle registration costs.

First-time EV registration in Texas can cost drivers $400 plus base registration fees, which could range from $50.75 to $840 per year, making the state one of the most expensive places in the country to register an electric car.

State EV registration fees can also depend on the weight of the vehicle, age of the driver, model year, and the number of years the vehicle has been registered consecutively. EV owners should check their registration requirements to get a more accurate idea of their final costs before making a purchase.

EV Fees Make Up for Lost Gas Tax

EV registration fees are intended to spread out the responsibility of infrastructure upkeep across all drivers. The United States government wants to increase EV sales to 50% of all total sales by 2030. However, state governments could have a hard time maintaining roads and infrastructure for EVs if they're only using revenue from taxes on gasoline — fees imposed on the purchase of fuel that can be funneled back into upkeep.

As more and more EVs hit the road, the revenue states receive from gasoline will likely diminish, leaving them potentially vulnerable to budgetary constraints. To make up for this loss, some state governments have imposed higher-than-average registration fees, both to prepare for the wider EV transition and to better distribute the cost of upkeep among all vehicle owners.

In some states, fees equal out to be relatively similar to the average tax drivers would pay if they drove a car with a gasoline engine. For example, in Washington, the gas tax in 2023 was about $0.49 per gallon. As an example, consider that the average Washington resident drives 10,949 miles per year: if their car gets 35 mpg they'd pay about $155 in gas tax annually, and if their car gets just 20 mpg they'll pay closer to $270 in annual gas taxes. Meanwhile, the cost to register an EV is $225.

You'll want to consider the math for your specific situation and state.

High Registration Fees Could Mean Better Preparation

Although EV owners could face higher registration fees, the costs may be a sign that their state is preparing for the EV revolution. According to the U.S. Department of Energy, as of 2022, Washington and Texas — two states with relatively high EV registration fees — also had the second and third highest number of electric vehicle registrations by state.

As nationwide adoption increases, these two states must continue to maintain their roads and build new charging stations — as each has an above-average number of EVs per charging station. By implementing these fees, states with high EV registration costs may be better equipped to keep up with growth.