Alberta Levies New Electric Vehicle Tax

Mar 18, 2025 - one year ago

Albertans will now be charged a $200 tax when they register their electric vehicles.

The new tax, which began February 13, charges an amount that is in line with what drivers of a typical internal combustion engine vehicle would be expected to pay each year in fuel tax.

“This is a fair way for all drivers to contribute to public services, and to help keep roads and highways safe and smooth,” stated Nate Horner, President of Treasury Board and Minister of Finance. “Alberta is joining a growing number of places across North America introducing this tax so that drivers of both electric and gas vehicles are treated the same.”

The tax will be collected by registry agents, and online via MyAlberta eService, when the vehicles are registered and each year when the owners renew their registrations. Electric motorcycles and electric off-highway vehicles, such as ATVs, are exempt, as are hybrid vehicles.

“Owners of electric vehicles use the same roads as other Albertan drivers,” said Dale Nally, Minister of Service Alberta and Red Tape Reduction. “It’s only fair they contribute to public services including those that ensure the continued safety and upkeep of Alberta’s roads. I’m pleased that Alberta registries have stepped up and made it easier for Albertans to comply by providing convenient locations to pay.”

These amendments were announced in Budget 2024 and passed in the Alberta Legislature last fall as part of the Financial Statutes Amendment Act. The legislative amendments also include other provisions, including rules for refunds and exemptions for the federal government, diplomats, and First Nations bands and individuals with a registered address on reserve.

Source: Province of Alberta