The Tax Foundation’s 2026 analysis examines how states tax and incentivize electric vehicles. Because EV drivers generally do not pay gasoline taxes, which help fund transportation infrastructure, states have increasingly turned to special EV registration fees and other charges to make up the difference.

As of July 2026, 41 states impose additional fees on electric vehicles, ranging from $50 in Hawaii to $270 in New Jersey. Fourteen states recently increased their EV fees, while several others adjusted them for inflation. At the same time, 15 states continue to offer EV purchase incentives, ranging from $500 in New York to as much as $8,000 in Maine.

The report notes that some states are pursuing both incentives and additional fees, creating a mixed tax treatment for EV owners. It also highlights alternatives such as taxes on electricity used for charging and vehicle-miles-traveled (VMT) fees, which the Tax Foundation argues could more directly link transportation taxes to actual road usage.

Major 2026 changes include higher EV fees in several states, a new fee in Delaware, an increased rebate in Rhode Island, and the end of EV tax-credit programs in Oklahoma and Vermont. The report also says many state incentive programs have exhausted their available funding.

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