The government says EV drivers don’t contribute to road maintenance since they don’t pay fuel taxes
- Saskatchewan has doubled the cost of registering or renewing an EV’s plates, from $150 to $300
- Earlier this year, Alberta added a $200 tax for EVs on top of their provincial renewals
- Both provinces say the fees will cover road maintenance, since EV owners don’t pay fuel tax
Saskatchewan drivers who register an electric vehicle (EV) starting June will be looking at a $300 charge, double the current amount; while earlier this year, Alberta levied a $200 tax on their registrations. In both cases, the provinces say they have earmarked the extra charges to help pay for road maintenance.
In a press release, the Saskatchewan government said the number of EVs registered in the province continues to grow, and that “these vehicles contribute to wear and tear on provincial roadways but, since they do not consume traditional fuels, they do not contribute to highway maintenance through the provincial fuel tax.”
Saskatchewan initially placed an annual “Road Use Charge” of $150 on EVs registered in the province in its 2021-2022 budget, the first province to introduce such a charge. The rise to $300 was in the 2025-2026 budget, “to better reflect the costs of road maintenance and ensure owners of electric vehicles contribute a more comparable amount to owners of traditional vehicles.” The $300 hike will begin on June 1, 2025.
Earlier this year in mid-February, Alberta levied an annual $200 tax when EV owners register new vehicles or renew their registrations. Initially introduced in the province’s 2024 budget, it is charged on top of the vehicle’s registration fee, which starts at $93.
In the budget, the government said EVs “tend to be heavier than similar internal-combustion vehicles and cause more wear and tear on provincial roadways while their owners pay no fuel tax,” and the $200 tax is considered comparable to what owners of conventional vehicles pay in fuel taxes – although the province’s fuel taxes aren’t specifically dedicated to repairing roads. The extra tax doesn’t apply to hybrids, or to electric motorcycles or ATVs.
While Saskatchewan and Alberta are the only provinces so far to charge extra registration fees on EVs, several U.S. states charge additional registration fees for them, ranging from US$50 to US$200. In addition to any applicable state “green” rebates, the U.S. Department of Energy offers tax credits of up to US$7,500 for new EVs; up to US$4,000 for used ones; and up to US$1,000 on home chargers.
British Columbia also suspends its provincial sales tax (PST) on used EVs and plug-in hybrids (PHEVs), which began in 2022 and is slated to wrap up on February 22, 2027. However, the province still charges PST on new electric vehicles.