LANSING, MI (WOWO) Michigan electric and plug-in hybrid vehicle owners are paying sharply higher registration fees in 2026, following changes tied to the state’s new road funding package.

Under the law passed last fall, annual registration fees for light-duty electric vehicles increased from $160 to $267, while plug-in hybrid fees rose from $60 to $113. The increases are in addition to standard vehicle registration fees based on a car’s value.

The change makes Michigan’s EV registration fees the highest in the nation, according to data from the National Conference of State Legislatures and the Tax Foundation. The national average for EV fees is just over $100.

Lawmakers say the increase ensures electric vehicle owners contribute to road maintenance traditionally funded through gasoline taxes. The road funding package is expected to generate about $1.8 billion annually for repairs once fully implemented according to Bridge Michigan.

The fee hike was triggered by a 2015 law that ties EV registration fees to increases in the state gas tax. Michigan recently raised its fuel tax from 31 cents to more than 52 cents per gallon as part of the funding overhaul.

State officials estimate the higher EV fees will generate about $12 million annually — a small portion of the overall road funding plan, which also includes revenue from fuel taxes and marijuana sales.

Critics argue the increase unfairly targets electric vehicle owners, while supporters say it reflects fair road usage costs. Efforts to scale back the fee increase have stalled in the Legislature.

Michigan has about 122,000 electric and plug-in hybrid vehicles registered statewide. EVs account for roughly 1.3 percent of all registered vehicles, below the national average.

Lawmakers have directed the Michigan Department of Transportation to study alternative road funding models, including mileage-based user fees, as gas tax revenues decline over time.