The short answer
This fee is not law. H.R. 8870, the BUILD America 250 Act, is the House's five-year surface transportation bill. Section 1129 would create a federal registration fee of $130 a year for an electric vehicle and $35 a year for a plug-in hybrid. You would pay it to your state DMV along with your normal registration, not to the IRS. As of October 13, 2026, the bill has passed committee but has had no vote in the full House or the Senate.
What H.R. 8870 proposes
From the bill text as introduced on May 19, 2026:
| Item | What the bill says |
|---|---|
| Electric vehicle | $130 a year |
| Plug-in hybrid | $35 a year |
| Increases | +$5 every two years starting in 2029 |
| Caps | $150 for EVs, $50 for plug-in hybrids |
| Ends | October 1, 2036 |
| Not covered | Commercial motor vehicles and covered farm vehicles |
| Who collects it | Your state DMV, during registration and renewal, then sent monthly to the Federal Highway Administration |
Ordinary hybrids that don't plug in are not listed. The bill uses the EPA's definitions of "electric vehicle" and "plug-in hybrid electric vehicle".
How it would be collected
The Federal Highway Administration would set the fee, but states would collect it. Each state would either add it to registration and renewals or get FHWA approval for another method. States could keep up to 1% for administration. A state that doesn't comply would lose highway funding equal to 125% of what it should have sent, starting in the federal fiscal year that begins after September 30, 2027. The bill also offers up to $2 million per state DMV, $104 million in total, to set up collection.
Where it stands now
- May 19, 2026: introduced and referred to the House Transportation and Infrastructure Committee.
- May 22, 2026: the committee voted 62–2 to report the bill with amendments. The amended text has not been published as a reported bill yet. The committee's section-by-section summary shows the same $130 and $35 amounts, the $5 increases and the $150 and $50 caps.
- Since then: no committee report has been filed, and there has been no vote by the full House or the Senate (govinfo bill status record, updated September 30, 2026).
- Current programs: the existing highway programs were extended to December 11, 2026 by the Continuing Appropriations and Extensions Act, 2027 (H.R. 6500). Congress has to pass a new highway bill or another extension by then. A fee like this one could be in that bill, changed, or dropped.
The introduced bill says the act takes effect October 1, 2026. That date has passed without the bill becoming law, so it no longer means anything until Congress acts.
What it would cost you: state fee plus federal fee
If it passed as introduced, an EV owner would pay the federal $130 on top of any state EV fee. Using state fees we have verified:
| State | State EV fee (2026) | Proposed federal fee | Combined |
|---|---|---|---|
| California (zero-emission, model year 2020+) | $121 Road Improvement Fee | $130 | $251 |
| Texas | $200 a year | $130 | $330 |
| Pennsylvania | $250 road user charge | $130 | $380 |
| Illinois | $100 on top of the $151 registration | $130 | $230 |
For a plug-in hybrid in Pennsylvania: $63 state road user charge + $35 federal = $98. These are the EV-specific charges only; each state's regular registration fees still apply. California's fee is not charged on the first registration of a new zero-emission car bought from a California dealer, and rises to $127 on January 1, 2027.
What happens next
Watch December 11, 2026. We will update this page when the House votes, the Senate acts, or the programs are extended again. Until then, no federal EV registration fee is due anywhere.
Frequently asked questions
Do I have to pay a federal EV fee now?
No. H.R. 8870 has not passed the House or the Senate and has not been signed. Only state EV fees apply today.
Would the IRS collect it?
No. Under the bill your state motor vehicle department would collect it with your registration or renewal and send it to the Federal Highway Administration.
Would hybrids pay?
Plug-in hybrids would pay $35 a year. Hybrids that don't plug in are not covered by the bill.
Is this related to the end of the federal EV tax credit?
No. That is a separate change; see the federal EV tax credit ended September 30, 2025.
Run the numbers
- GPO govinfo – H.R. 8870 as introduced, May 19, 2026 (Sec. 1129, Registration fee on motor vehicles)
- GPO govinfo – H.R. 8870 bill status (actions through May 22, 2026; record updated Sept 30, 2026)
- House Transportation and Infrastructure Committee – BUILD America 250 Act section-by-section
- House Transportation and Infrastructure Committee – Committee approves BUILD America 250 Act (May 22, 2026)
- GPO govinfo – H.R. 6500 enrolled, Continuing Appropriations and Extensions Act, 2027 (Sec. 3002, 3101: extension to Dec 11, 2026)
- CA DMV – Registration Fees (Road Improvement Fee)
- TxDMV – Register Your Vehicle (electric vehicle fee)
- PennDOT – Road User Charge
- Illinois Secretary of State – Vehicle FAQ (registration and EV fee)
General information, not tax or legal advice. Fees and tax rules change; confirm with the agency listed before you pay.