Electric Vehicle (EV) Charger Tax

EV charger owners and lessees must pay both an excise tax and surtax fee, with the surtax fee only applicable if the EV charging station is located on state property. In 2025 the rates of both are of $0.032 per kilowatt hour of electricity used to charge EVs. The tax will be added to the selling price charged by the station operator. If the station operator provides free electricity, they will be responsible for paying the tax on stations installed after June 30, 2022. The station operator must report total kilowatt hours distributed, tax amount collected, and provide payment to the state monthly. The Kentucky Department of Revenue must compare the tax rate to the most current quarterly National Highway Construction Cost Index 2.0 (NHCCI 2.0) by December 1 annually. The tax rate is adjusted annually to match the NHCCI 2.0 change, up to a maximum 5% annual increase or decrease, by January 1 annually.

(Reference Kentucky Revised Statutes 138.477)