EV ownership just got pricier in Minnesota, with rising fees based on MSRP and a new tax hitting fast chargers by mid-2027
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7 hours ago
EV registration fees now scale with a vehicle’s original MSRP.
F-150 Lightning buyers could pay over $300 in registration fees.
Plug-in hybrids now face a new $75 minimum yearly surcharge.
Owning an electric vehicle or plug-in hybrid in Minnesota just became a pricier proposition. New legislation rolling out this month increases registration fees across the board, meaning drivers of EVs and PHEVs will see their annual costs jump, some significantly so, depending on the vehicle.
Up until now, electric vehicle owners in the state have paid a flat $75 annual surcharge in lieu of gas taxes, which are traditionally used to fund local road maintenance.
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Under the updated rules that went into effect on January 1, 2026, that surcharge has doubled to a minimum of $150 for all EVs. Plug-in hybrid drivers, previously exempt due to their partial reliance on gasoline, are now included as well, with a new minimum fee of $75 added to their registration.
How Value Shapes the Surcharge
The updated surcharge isn’t flat. It scales based on the vehicle’s original sticker price and age. In the first year of registration, fully electric vehicles will be assessed an additional fee equal to 0.5 percent of the manufacturer’s suggested retail price (MSRP). For plug-in hybrids, the rate is set at 0.25 percent.
As vehicles age, the surcharge is reduced each year according to a sliding scale. By the second year, the calculation uses 95 percent of the original MSRP. That figure drops to 90 percent in year three, 80 percent in year four, and continues to decline by 10 percent increments. Once a vehicle is more than ten years old, the fee is based on just 10 percent of its original MSRP.
What Does It Mean for Popular Models?
For those considering an electric pickup like the Ford F-150 Lightning, the first-year fee could run as high as $325. By year two, that drops slightly to $309, and by year three it falls to around $253. Drivers of a Tesla Model 3, one of the state’s most common EVs, would be looking at $221 in the first year, followed by $210 in year two and $172 in year three.
As reported by Kare11, lawmakers have framed the new system as a way to ensure road infrastructure funding keeps pace with the shift away from internal combustion engines. Still, the move has raised concerns that it could dampen enthusiasm for EVs and plug-in hybrids at a time when adoption is just beginning to gain momentum.
The registration fee increases are not the only policy changes on the horizon. Beginning July 1, 2027, all public charging stations in the state that operate at 50 kW or higher will face a new tax of five cents per kilowatt-hour delivered. While relatively modest, the fee adds another layer of cost for EV drivers using fast charging options.
