Changes to how taxes on gasoline are levied in 2026 will have major effects on what Michiganders will be paying in registration fees on EVs and plug-in hybrids.
LANSING, Mich. — Drivers in Michigan will soon need to pay much more for annual registration fees if they are driving an electric or plug-in hybrid vehicle.
Starting in 2026, Michiganders will pay $260 to register an electric vehicle (EV) and $110 to register a hybrid vehicle. That’s up $100 for an EV and up $50 for a hybrid. Plus, depending on the vehicle’s classification, drivers can pay up to $100 more for registration of trucks and buses.
The changes to the registration fees were a consequence of how gasoline and diesel will be taxed starting on Jan. 1, 2026.
Registration fees for electric and hybrid vehicles are tied to Michigan’s motor fuel tax on gasoline and diesel. Whenever the tax rises, so do the annual registration fees for those vehicles, which are collected by the Secretary of State.
The annual state budget, passed in early October, is set to change how some taxes on gasoline and diesel will be levied next year.
On Jan. 1, there will be no more sales tax on gasoline and diesel; however, the cost to Michiganders at the pump won’t change much, if at all. That’s because the 6% general sales tax on gasoline and diesel was removed, but then replaced with a relatively equal amount of motor fuel tax. Michiganders will soon be paying 51 cents per gallon in motor fuel tax instead of the previous 31 cents per gallon, making up for the loss of the general sales tax.
Under Michigan law, motor fuel tax revenue goes directly to the Michigan Transportation Fund (MTF), which is the main collection and distribution fund for state transportation revenue. Essentially, the MTF is the main source of money used in road maintenance and repair.
The changes to the motor fuel tax are expected to generate an extra $1 billion in revenue for the MTF, according to a House Fiscal Analysis.
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