Saskatchewan to Double Annual Tax on Electric Vehicles
As part of its 2025-2026 Budget, Saskatchewan announced on Friday that it will double the annual Road Use Charge for electric vehicles registered in the province. Starting June 1, 2025, the charge will increase from $150 to $300.
This EV tax initially came into effect on October 1, 2021 and was widely criticized by EV advocates soon after the announcement. It was described by the government as an effort to recoup fuel tax money from residents who drive fully electric vehicles.
- Also: Saskatchewanians Launch Sarcastic Campaign to Fight Province’s New EV Tax
- Also: New EV Tax is Coming Into Effect in Alberta Next Year
The number of EVs registered in Saskatchewan has grown from around 400 four years ago to just shy of 1,400 at the end of 2024, according to Statistics Canada.
“These vehicles contribute to wear and tear on provincial roadways but, since they do not consume traditional fuels, they do not contribute to highway maintenance through the provincial fuel tax,” the government wrote in a statement, adding that all revenue collected are dedicated to provincial highway maintenance.
It believes that going from $150 to $300 better reflects the costs of road maintenance and ensures EV owners contribute a more comparable amount to owners of traditional vehicles.
Saskatchewan is among Canadian provinces not offering incentives towards the purchase of EVs. Ditto for Alberta, which also has an annual tax that went into effect January 1, 2025. Registered EV owners must pay $200 to legally drive on the roads of Alberta.
And we probably don’t have to remind you that the Canadian government’s Incentives for Zero-Emission Vehicles (iZEV) program came to an abrupt halt on January 13 after running out of funds, putting many shoppers in limbo and affecting automakers alike.
The program’s return is uncertain and will depend on the result of the next federal election expected to take place this spring.
