Purchasing an electric vehicle can be a great way to save on fuel costs and reduce your carbon footprint. However, depending on where you live, owning an EV may not make financial or practical sense due to a lack of incentives, charging infrastructure, and high associated costs. Based on research of state-level data and policies, we‘ve identified and ranked the 10 worst states for EV ownership.
How We Evaluated the Worst States for EV Ownership
We looked at several key factors to grade states on how EV-friendly they are:
- Number and value of state incentives and tax credits for buying EVs
- Ease of access to public charging stations measured by number of ports per capita
- Additional registration fees and taxes levied on EVs
- Average annual insurance costs for EVs
- State policies around direct EV manufacturer sales to consumers
- Electricity prices per kilowatt-hour for home charging
States with poor rankings offered fewer financial incentives while also charging EV owners extra through annual fees. They also lacked public charging infrastructure, with stations few and far between. These factors combined can make owning an EV highly impractical and expensive compared to gas-powered alternatives.
10. Indiana
Indiana ranks 45th nationally in electric vehicle adoption with just 0.3% of registered vehicles being plug-in electric. The state offers no tax credits or incentives for purchasing EVs. Indiana also tacks on an extra $150 fee for EV registrations and $50 for hybrids and plug-in hybrid EVs.
With only around 300 public charging stations in the entire state, drivers also have limited infrastructure to reliably charge away from home. And at 13.8 cents per kWh, Hoosiers pay over 10% more than the national average for residential electricity.
However, Indiana plans to invest $100 million from the federal National Electric Vehicle Infrastructure program to boost charging options over the next five years. So the outlook could improve significantly.
9. South Dakota
South Dakota matches Indiana with 0.3% EV adoption among registered vehicles. The state provides no incentives for purchasing electric vehicles. South Dakota also requires EV owners to pay an annual $50 fee on top of normal registration costs.
Access to charging stations is extremely limited statewide, with just over 100 ports available for the public. This lack of infrastructure has hindered more growth in electric vehicle ownership so far. And at 14.13 cents per kWh, electricity rates are also inflated compared to much of the U.S.
8. West Virginia
West Virginia has seen very little EV adoption, with just 600 electric vehicles registered statewide as of 2022. That equals a miniscule 0.04% of total registrations. On top of no state incentives for EVs, West Virginia tacks on extra fees during annual registration. Electric vehicles must pay $100 plus license tax based on the vehicle‘s value, which amounts to around 4 times the cost of registering a gas-powered vehicle.
The state also has very few public charging ports available, with just 111 open to the public. And direct sales from manufacturers to consumers are prohibited by state franchise laws. So without government support or private investment, EVs face significant headwinds in West Virginia currently.
7. Kentucky
As in West Virginia, electric vehicle adoption remains extremely low in Kentucky. Just 0.26% of registered vehicles are plug-in electric, despite no state policies restricting ownership. However, Kentucky does not offer any incentives or tax credits to encourage EV purchases.
Public charging infrastructure is also severely lacking, with around 3 stations per 10,000 registered vehicles statewide. For comparison‘s sake, leading state California has almost 70 charging ports per 10,000 cars. And at 14.4 cents per kWh, electricity is more expensive than average to charge at home.
High insurance costs in the state also earn Kentucky a poor grade. Annual premiums for EVs run over $3,100 per year on average, 70% higher than rates for gas vehicles.
6. Arkansas
Arkansas has seen EV adoption tick up slightly to 0.27% market share among registered vehicles. But state support remains minimal, with no incentives offered to buyers. Registration and insurance costs are also inflated for electric vehicle owners compared to gas counterparts.
Public infrastructure expansion has not kept pace either, with around 5 charging ports for every 10,000 registered vehicles in Arkansas. Electricity rates are reasonably affordable for the region though, potentially saving EV drivers charging at home versus fueling with gas.
5. New Mexico
On paper, New Mexico offers decent incentives for those looking to purchase an electric vehicle. Citizens can qualify for a $3,000 state tax credit applied towards buying an EV. An additional $300 credit is also available for installing a home charging setup.
However, even with these financial perks, New Mexico still ranks as one of the worst states for EV ownership. Charging infrastructure is extremely limited, with just one public port for every 4,786 residents. Drivers must be prepared to predominantly charge at home given the lack of options on road trips through large swaths of rural areas.
4. Alabama
Alabama has actively discouraged electric vehicle adoption through extra fees and taxes on registrations. On top of no incentives or tax credits, EV owners must pay an annual $200 fee plus a $100 use tax simply for driving an electric vehicle. These policies have severely hampered market growth, with EVs making up just 0.33% of Alabama registrations.
Public charging access follows suit, with limited ports spread thinly across the state. Manufacturers are also restricted from direct sales, further driving up EV costs for Alabama consumers compared to states allowing open markets.
3. Louisiana
Louisiana trails well behind national averages for electric vehicle adoption. Just 0.38% of registered vehicles statewide are plug-in electric compared to 1.74% nationally. Out-of-state buyers also face prohibitive policies, as Louisiana dealers claim that direct sales from EV automakers violate franchise laws.
For locals, upfront purchase incentives are nonexistent in Louisiana. And with an average electricity price of 9.35 cents per kWh, powering an EV at home comes at a premium. Public charging infrastructure has significant room for improvement too, though added investment could begin changing that story.
2. South Carolina
Despite ambitious climate goals from some state political leaders, South Carolina currently offers very little incentive for citizens to switch to electric vehicles. No tax credits or rebates exist, while EVs made up just 0.44% of registered vehicle share as of 2020. Drivers also face the highest average auto insurance premiums in the country, frequently paying over $1,900 annually.
The Palmetto State does fare slightly better than others when it comes to charging access, with around 6 ports per 10,000 registered vehicles. However statewide deployment still trails leaders by a wide margin as EVs remain a rare sight across South Carolina highways.
1. Mississippi
Our analysis finds Mississippi to be the single worst state for EV ownership currently. The state offers no incentives or tax rebates whatsoever while also imposing an extra $100 annual fee on electric vehicle registrations. Public charging infrastructure is gravely lacking with around 2 ports per 10,000 registered vehicles statewide.
Mississippi has actively fought policies to improve matters too. As recently as March 2023, legislators approved bans on direct EV sales that will prevent new manufacturer showrooms. So without state support or voter demand, little motivation exists for corporations to invest in more charging stations that could allow EVs to thrive in Mississippi long-term.
Key Takeaways on the Worst States for Owning an EV
While the outlook remains dreary today, remember that states can adjust policies over time that may drastically improve the viability of driving electric. So we advise occasionally checking your state‘s dashboard at the Electric Vehicle Adoption site for updates on regulations, incentives, and charging infrastructure.
Advocacy and consumer interest can also go a long way towards convincing lawmakers to take action. Some initiatives like federal investment from the Bipartisan Infrastructure Law should tangibly assist many of these EV laggard states in the coming years too.
So while you may endure higher hurdles as an early adopter, embracing an electric vehicle even in the worst states can still prove rewarding. Just be sure to understand all the constraints and costs in your area before purchasing to make the best decision for your personal mobility needs.
