The Nova Scotia government is launching a new levy on electric vehicle (EV) and hybrid owners. The provincial government says the tax is to ensure those drivers are also contributing to road and highway maintenance.
The new levy, which was introduced as part of the provincial budget, will see EV owners pay $500 every two years and Hybrid owners $250. This new tax is expected to raise $1.6 million in 2026/27 and $3.3 million in 2027/28 once fully implemented.
The 2026 Budget line item is as follows:
To ensure owners of electric and hybrid vehicles contribute to road construction and maintenance costs in the Province, a new Electric and Hybrid Vehicle Levy will be implemented effective October 1, 2026, to be paid when a prescribed vehicle is registered and every two years thereafter when the vehicle registration is renewed.
Much like other jurisdictions, the province is trying to even the costs to taxpayers who use the road. Traditionally, highway and infrastructure upgrades were funded through gasoline and diesel taxes at the pump. In Nova Scotia, drivers pay $0.263 per litre in provincial excise and sales tax. So, this new $ 250-per-year levy would represent the same tax burden as filling a car with around 950 litres of fuel for the year.
Nova Scotia is not the first province to implement such a levy, with Alberta and Saskatchewan already having levies, and Quebec implementing one this year. Quebec’s levy is significantly cheaper at $125 per year for EVs and $62.50 for plug-in hybrids.
