Electric vehicles (EVs) have come a long way. Now that they’re a reliable mode of transportation, an increasing number of drivers are adopting EVs. One of the main reasons to drive an electric car is they’re generally cheaper to maintain and fuel than traditional gas cars. However, this might not be the case in Illinois if a new bill is passed.
Recently, Senator Ram Villivalam (D-Chicago) filed Senate Bill 3566, which proposes amending the Illinois Vehicle Code to increase the annual registration cost for EVs by $320. If passed, this additional charge would go into effect on July 1, 2027. Add that to the $151 dollars EV owners already pay annually to renew their registration, and the total would come to $471 … for the first year. The bill also opens the possibility of increasing the surcharge, meaning EV owners could easily find themselves spending over $500 on annual registration fees before too long.
While the flat $320 additional surcharge might rub some drivers the wrong way, it isn’t completely mandatory. Sort of. The bill also proposes an alternative fee determined by the new “Road Usage Charge Program,” which says EV owners can pay 1.5 cents per mile up to a total of $320 instead of the annual registration fee. However, anyone who goes that route must keep a close eye on how much they travel, and report their mileage each year. Plus, like the surcharge, the Road Usage Charge Program fees will be subject to annual recalculations and increases.
Illinois would become the state with the most expensive electric car registration fees
Currently, EV owners in Illinois have to pay $100 a year in addition to standard registration charges, which is actually one of the lowest annual EV registration fees in the U.S, assuming a state has one. Only Colorado, Hawaii, Minnesota, South Dakota, and Vermont have lower registration charges. However, if Illinois’ re-registration fee is increased, it would give Illinois the highest annual registration fee in America. Currently, New Jersey has the highest annual EV surcharge at $260.
On the bright side, the proposed bill doesn’t impact Illinois’ Electric Vehicle Rebate Program, which offers up to $4,000 back on EV purchases and leases. Buyers classified as “low-income applicants” can receive the full $4,000, while anyone who isn’t a low-income applicant only gets $2,000. However, this rebate is a bit of a double-edged sword, and only applies to vehicles bought before May 31, 2026.
After that window closes, any EVs purchased before June 30, 2027 will only qualify for $2,000 back, followed by an even lower $1,000 rebate for EVs bought afterwards. If Senate Bill 3566 passes, it’ll potentially impact recent and future EV buyers more than established EV owners. And that’s not even taking into account recent RAM shortages that threaten to raise EV prices. Only time will tell if the bill passes.
