EV Registration Fees, Surcharges, and New “Per-kWh” Taxes: What Midwest EV Owners Should Budget For
One of the quickest ways an EV purchase can feel “more expensive than expected” has nothing to do with the battery. It is paperwork. As more drivers switch from gasoline to electricity, states face a structural issue: gas taxes still help fund roads, but EVs buy less (or no) gasoline. Many states have responded by adding EV-specific registration surcharges, and a few are also experimenting with taxes tied to public charging.
It helps to separate three concepts that are often blended together online. First is the standard annual registration or plate renewal fee that applies to every vehicle. Second is an EV surcharge—an additional annual fee that only applies to electric vehicles (and sometimes hybrids). Third is a charging tax that applies to electricity delivered at charging stations, usually measured in kWh (kilowatt-hour). Each can show up differently on your renewal notice or your charging receipt.
Illinois is a clear example of the surcharge approach. The Illinois Secretary of State describes an additional $100 annual fee for electric vehicles “in lieu of the payment of motor fuel taxes,” and the same guidance shows the fees drivers commonly see for electric vehicle license plates.
Wisconsin makes the surcharge model explicit, too. Wisconsin’s Department of Transportation fee schedule lists an electric vehicle surcharge and a hybrid electric vehicle surcharge in addition to standard registration fees.
Now add a newer category: charging taxes. Wisconsin implemented an excise tax on electricity delivered from an electric vehicle charging station into a vehicle’s battery, effective January 1, 2025, set at a cents-per-kWh rate. In practical terms, taxes like this are typically collected by station owners and operators, but drivers may experience them as a higher per-kWh price at the charger (or as a separate line item, depending on how the station presents pricing).
Are EV surcharges unusual? Not really anymore. A National Conference of State Legislatures (NCSL) brief notes that states have enacted special registration fees for EVs and hybrid vehicles, commonly described as a way to address reduced gas-tax contributions. That national context is important for expectation-setting: these fees are not a “one state” issue, and they can change as legislatures revisit road funding.
So what should an EV shopper do with all of this? The main goal is budgeting clarity before signing paperwork. Ask early: What will annual renewal cost in my registration state? Is there an EV surcharge or hybrid surcharge, and does it vary by vehicle weight class? Are there local wheel taxes or county add-ons where I live? And if I expect to rely on public fast charging, does the state impose a per-kWh excise tax that could be reflected in the price I pay at the station?
A compiled summary can be a useful starting point when comparing states, but always validate it against an official state source for your exact vehicle type. One January 2025 overview, for example, listed higher EV registration costs across multiple states, including Illinois and Missouri. Use lists like that to spot what to verify, not as the final answer.
For most buyers, these fees do not erase the ownership benefits of electrification, but they can change the “feel” of the deal if you were not expecting them. This is exactly the kind of detail that should be addressed before delivery—especially for Midwest drivers who cross state lines frequently for work, family, or travel.
Sources & References:
https://www.ilsos.gov/departments/vehicles/license-plate-guide/electric-vehicle.html (December 27, 2025)
https://wisconsindot.gov/Pages/dmv/vehicles/title-plates/fee-chart.aspx (December 27, 2025)
https://www.revenue.wi.gov/Pages/Businesses/EVcharging.aspx (December 27, 2025)
https://www.ncsl.org/transportation/special-registration-fees-for-electric-and-hybrid-vehicles (July 27, 2025)
https://klrd.gov/2025/01/17/states-fees-for-electric-and-hybrid-vehicles/ (January 17, 2025)