Under the plan
- Fully electric vehicle owners will pay $500 every two years
- Hybrid vehicle owners will pay $250 every two years
The levy will apply at first registration and at every two-year renewal.
Rhonda Frank and Head of Chezzetcook response
Rhonda Frank, a small business owner from Head of Chezzetcook, Nova Scotia, owns three fully electric vehicles. She will pay an additional $1,500 every two years under the new policy. She said the cost will accumulate over time and affect her micro-business.
"It seems punitive," Frank said. "It feels like I’m being charged a penalty just for trying to be a green business. And $1,500 may not sound like a lot, but for a micro-business, every new fee matters."
Budget documents state that the levy is designed to ensure electric vehicle owners contribute to road construction and maintenance. The province expects it to generate $1.6 million in 2026-27 and $3.3 million in 2027-28, once fully implemented. Frank said she supports contributing to road costs but questions the flat-rate model. She suggested fees based on:
- Vehicle class
- Axle load
- Distance travelled
She also noted that many hybrid drivers purchase gasoline and therefore pay fuel taxes.
"I'm asking them for a fair, transparent approach that's based on evidence," Frank said.
John MacPherson and Nova Scotia driving costs
John MacPherson, an electric vehicle owner, also criticized the flat fee. He drives approximately 10,000 kilometres annually. He said the new $500 charge means he will pay about double what he would have paid in fuel taxes with a gasoline-powered vehicle.
"A flat $500 fee is not proportionate - especially for moderate drivers like me. There are fairer, usage-based solutions available. I’d like to know why those weren’t seriously considered," he said.
He added that many buyers chose electric vehicles believing provincial authorities supported cleaner transportation. "Many of us purchased our vehicles - new or used - believing the government supported the transition to cleaner transportation. Now we’re being hit with one of the highest EV registration fees in the country."
The government estimates there are about 5,000 fully electric and 15,000 hybrid vehicles in Nova Scotia. However, it said the hybrid figure reflects the broadest definition and not all may fall under the levy.
Revenue and infrastructure costs
The projected $3.3 million in annual revenue contrasts with forecast motive fuel tax revenue of $297.7 million in 2026-27. Road construction and maintenance expenses remain significant. According to the Department of Public Works:
- Resurfacing two-lane routes costs about $700,000 per kilometre
- Resurfacing two lanes in the same direction on 100-series highways costs $800,000 to $1 million per kilometre
- New twinning projects cost about $10 million per kilometre, including land acquisition, clearing and grading
Kurt Sampson and Electric Vehicle Association of Atlantic Canada analysis
Kurt Sampson, executive director of the Electric Vehicle Association of Atlantic Canada, said a new taxation framework will be necessary as gasoline-powered vehicles decline and electric vehicles increase. He noted that 90 to 95 per cent of the wear and tear on roads is caused by heavy trucks, but the gas tax those drivers pay does not reflect that.
Sampson said the introduction of the levy is an opportunity to have a discussion about creating a new system that's fair for everyone. He added that for many current electric vehicle owners, the additional fee will not significantly alter overall savings.
"I save $500 a month or more on gas alone, so me having to pay $500 every two years for this tax is really inconsequential," he said.
He acknowledged, however, that prospective buyers may react differently. "But for someone who might be considering an EV who doesn't really know or have a solid grasp of the economics of EV ownership, it's probably another deterrent. And you know, we don't like to see that."
Abby Lefebvre, energy co-ordinator with the Ecology Action Centre, said she does not believe the levy will be a deterrent to most people considering buying an EV, but the fee will impact some Nova Scotians who "are already pinching coins."
"It really is still important to remember all of the good that EVs can do for our community and to not be discouraged by what's happening," she said.
The provincial levy follows a federal announcement of purchase incentives, including rebates of up to $5,000 for EVs and $2,500 for plug-in hybrids. The new provincial charges will take effect this fall, adding a fixed cost to electric and hybrid vehicle registration across Nova Scotia.
FAQ
When will the new Nova Scotia levy on electric and hybrid vehicles take effect?
The levy will take effect on Oct. 1 and will apply at first registration and at every two-year renewal.
How much will fully electric vehicle owners pay under the new levy?
Fully electric vehicle owners will pay $500 every two years when registering their vehicle for the first time or renewing registration.
How much will hybrid vehicle owners be charged?
Hybrid vehicle owners will pay $250 every two years under the new registration levy.
How much revenue does the province expect the levy to generate?
The levy is expected to raise $1.6 million in 2026-27 and $3.3 million in 2027-28 once fully implemented.
How many electric and hybrid vehicles are currently registered in Nova Scotia?
The government estimates there are about 5,000 fully electric vehicles and 15,000 hybrid vehicles in the province, although not all hybrids may be subject to the levy.
How does the projected levy revenue compare to motive fuel tax revenue?
The projected $3.3 million in annual levy revenue is significantly lower than the forecast $297.7 million in motive fuel tax revenue for 2026-27.
What are the estimated road construction and resurfacing costs in Nova Scotia?
Resurfacing two-lane routes costs about $700,000 per kilometre. Resurfacing two lanes in the same direction on 100-series highways costs between $800,000 and $1 million per kilometre. New twinning projects cost about $10 million per kilometre.
What federal incentives are available for electric and plug-in hybrid vehicles?
Federal incentives include rebates of up to $5,000 for electric vehicles and $2,500 for plug-in hybrids.
Source: CBC