New levy for electric vehicles comes into effect this October
Posted Sep 26, 2026 01:11:02 PM.
Electric and plug-in hybrid vehicle drivers will be charged a $500 renewal levy starting Oct. 1 in what the province says will contribute to road maintenance.
On top of the vehicle registration fee, electric vehicle owners will pay $500 and plug-in hybrid vehicles will be subject to a $250 levy while gas hybrid vehicles will not pay this levy. These permits renew ever two years and will not include HST.
“Nova Scotians pay for construction and maintenance of our provincial roads and highways when they buy gas, through the tax included in the price. Electric vehicle owners don’t pay it, and plug-in hybrid owners pay less,” said John Lohr, Minister of Finance and Treasury Board in a release. “This levy will ensure that all vehicle owners are helping to pay for the cost of building and maintaining the roads we all rely on.”
The new levy was approved in April as part of the budget and Nova Scotia will join Saskatchewan and Alberta who have previously introduced electric vehicle fees of $300 and $200 respectively. Quebec will start charging $125 a year in 2027.
Electric vehicle owners who have paid the levy and sell their car throughout the two-year period will be eligible for a partial refund.
The levy applies to passenger vehicles, light trucks and vans. It does not apply to vehicles used by municipalities, fire departments or police.
Canadians prefer gas-powered vehicles
The latest EY mobility consumer index for 2025 shows only seven per cent of those planning to buy a car in the next 24 months intend to buy an EV, down from 15 per cent in the previous report from 2024.
Meanwhile, 58 per cent said they preferred an internal combustion engine vehicle, up from 44 per cent in 2024.
The report, published on Thursday, found 30 per cent of Canadians hoping to buy a car soon are delaying or reconsidering an EV purchase in light of recent geopolitical issues.
Consumers cited high upfront costs for EVs and charging reliability as their top reasons to consider gas vehicles instead, the report found. Consumers also said charging confidence and overall practicality of EVs were a concern.
Recent Statistics Canada data shows sales of zero-emission vehicles in 2025 were down 35.7 per cent from a year earlier, which the agency noted was likely influenced by changes to federal and provincial EV incentive programs.
With files from Ritika Dubey, The Canadian Press
