Beginning now, Minnesota electric vehicle owners will incur double fees, and this is only the start. | Carscoops

      The cost of owning an electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV) in Minnesota has recently increased due to new fees linked to the manufacturer's suggested retail price (MSRP) and a tax on fast chargers set to take effect by mid-2027.

      Effective January 1, 2026, EV registration fees will now be dependent on the vehicle’s original MSRP. For instance, buyers of the Ford F-150 Lightning might find themselves paying over $300 in registration fees. Additionally, plug-in hybrid vehicles now have a minimum annual surcharge of $75.

      Previously, electric vehicle owners in Minnesota were subject to a flat annual surcharge of $75 as a substitute for gas taxes typically used for local roadway maintenance. Under the new regulations, this surcharge will increase to a minimum of $150 for all EVs, and plug-in hybrids, previously excluded due to their partial gasoline usage, will now incur a minimum fee of $75.

      The updated surcharge is not a flat fee; it varies based on the vehicle's original price and age. In the first registration year, fully electric vehicles will incur an additional charge of 0.5 percent of the MSRP, while plug-in hybrids will face a rate of 0.25 percent.

      As vehicles age, the surcharge decreases annually on a sliding scale. In the second year, the calculation will consider 95 percent of the original MSRP; in the third year, it will be 90 percent, 80 percent in the fourth year, and continue to decline in 10 percent increments. Once a vehicle exceeds ten years, the fee will be based solely on 10 percent of its original MSRP.

      For popular models, such as the Ford F-150 Lightning, the first-year fee may reach up to $325, decreasing to $309 in the second year and around $253 by the third year. Tesla Model 3 owners, among the most commonly owned EVs in the state, would pay $221 in the first year, followed by $210 in the second year and $172 in the third year.

      According to Kare11, lawmakers have described the new fee structure as a necessary measure to keep funding for road infrastructure aligned with the decline of internal combustion engine vehicles. However, there are concerns that these increases could discourage the adoption of EVs and PHEVs, particularly as their popularity begins to rise.

      Additionally, starting July 1, 2027, all public charging stations in the state operating at 50 kW or above will be subject to a new tax of five cents per kilowatt-hour delivered. Although this fee is relatively small, it introduces an extra expense for EV drivers utilizing fast charging services.