Breanna Gaudet, general manager of production at Clutch Halifax, said the online dealership has seen an increase in electric vehicle sales in the last few years. But with the new provincial levy, some customers are weighing their options more carefully.
Giuliana Grillo de Lambarri · CBC News · Posted: Oct 05, 2026 5:00 AM EDT | Last Updated: October 5
Electric vehicle sales at a Halifax car dealership have increased in recent years but a manager says the province's new tax on EVs and plug-in hybrids has some customers weighing their options more carefully.
“There have not been many concerns, but it's more questions of how this will impact them in terms of their overall cost of ownership,” said Breanna Gaudet, general manager of production at online dealership Clutch Halifax.
The new fee, which went into effect Oct. 1, means EV owners will pay an additional $500 every two years when renewing their registration, while plug-in hybrid owners will pay $250. It does not affect traditional hybrids.
Gaudet said it's too early to determine whether the levy could affect consumer behaviour in the long term.
She said EVs were the only segment of vehicles whose sales went up last month at Clutch, rising 1.9 per cent. She attributes that to people seeking relief from volatile gas prices.
“It makes the most sense just based on the cost and the economics when it comes to fuel that we would see more adoption [of EVs] as we go,” said Gaudet.
But an EV owner in Guysborough County, N.S., says the new levy represents another financial barrier for people at a time when the cost of living is soaring.
Brian Moon said his EV — a Tesla Model Y — is due for renewal in two years, when he'll have to pay the $500 tax on top of a registration fee of $221.70.
“It's frustrating. It's just not fair if there wasn't any consultation,” he said, adding that the levy may be a “deterrent” for people who might otherwise consider buying an EV.
Introduced in the provincial government’s most recent budget, the fee ensures drivers who pay little or no fuel tax at the pump still contribute to road repairs.
“Electric vehicle owners don’t pay this tax because they don’t use gasoline, and plug-in hybrid vehicle owners use less gas, so they pay less motive fuel tax,” Rachel Boomer, a spokesperson for the Finance Department, said in a statement to CBC News.
“The levy is designed to ensure those drivers also contribute to the cost of road maintenance.”
Boomer pointed out Nova Scotia is not the only province with a tax on electric vehicles.
Saskatchewan charges $300 per year, Alberta charges $200 annually, and Quebec will start charging EV owners $125 in 2027.
MORE TOP STORIES
- Dartmouth woman shares challenges accessing care for IUDs
- Halifax residents react to police investigation into mayor's expenses
- CBRM weighs new report on taking over volunteer fire departments
- Sign depicting rape culture draws condemnation in Antigonish
- 'The Night of the UFOs': Remembering the Oct. 4, 1967, skies over Nova Scotia
Giuliana Grillo de Lambarri
Reporter - Editor
Giuliana is an award-winning journalist in Nova Scotia interested in fisheries, rural communities, the environment, and more. Got a story idea? Email it at giuliana.grillo.de.lambarri@cbc.ca.
CBC's Journalistic Standards and Practices· About CBC News
Corrections and clarifications· Submit a news tip
New EV, plug-in hybrid levies take effect Oct. 1 in Nova Scotia Soaring diesel prices force N.B. businesses to add fuel surcharges With prices at the pump soaring, some P.E.I. businesses are forced to make adjustments N.L. businesses looking elsewhere as retaliatory tariffs kick in on U.S. goods Sky-high diesel prices are troubling farmers, truckers in New Brunswick
