7 States with Largest Penalties for EV Drivers

EV penalty fees are surcharges that states impose on electric vehicle (EV) owners to compensate for reduced fuel tax revenue. Traditionally, state and federal gas taxes fund road maintenance and infrastructure projects, with each gallon of gasoline sold contributing to this revenue pool. Since EVs do not consume gasoline, their owners do not pay these taxes, which has led to funding gaps as EV adoption grows. To address this shortfall, states have introduced penalty fees for EV owners so they can contribute to the upkeep of the infrastructure they also use.

Typically, these fees are levied annually, added as part of vehicle registration costs, or included in licensing fees. Some states apply a flat rate, while others have tiered, or escalating fees based on vehicle type or age. For example, certain states charge a one-time registration fee followed by a recurring annual cost, while others maintain a fixed yearly fee. These fees vary widely, depending on each state’s unique transportation funding needs and infrastructure challenges.

Critics argue that EV penalty fees can disincentivize EV adoption and contradict broader environmental goals. Proponents, however, contend that EV fees are necessary for infrastructure sustainability, especially as traditional funding sources wane. The challenge moving forward lies in developing equitable funding solutions that support both infrastructure upkeep and environmental objectives as transportation evolves toward electrification.

Read on to learn about the seven US states that impose the highest annual EV fees.