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Electrified Charges: Alberta to introduce $200 annual electric vehicle tax

Edmonton, Alberta — Electric car owners in Alberta will be required to pay an annual $200 electric vehicle tax starting in January 2025.

The province unveiled its 2024 budget last Thursday and says that the new tax will be applied when electric vehicle owners register their vehicle and will be in addition to the current registration fee.

According to the province, the reason for the tax is because electric vehicles tend to be heavier and cause more destruction on highways and roads, and owners don’t pay a provincial fuel tax.

The tax will not apply to hybrid vehicles, the budget says.

During a Thursday news conference, Alberta Finance Minister Nate Horner said the tax rate is meant to be in line with the estimated fuel tax paid by a typical Alberta driver. He pointed to other jurisdictions that have moved forward with similar fees for electric vehicles.

“I’m interested in fixing the roads,” Horner said. “We need everyone to help.”

The province estimates the tax will generate $1 million in revenue for 2024 to 2025 and is expected to grow to $5 million in 2025 to 2026, and then $8 million in 2026 to 2027 as more electric vehicles come on board.

More details on the tax will be made available when legislation is introduced in fall of this year, the budget says.

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