A mileage tax is a per-mile fee charged for driving on public roads, designed to replace or supplement the gas tax as vehicles get more efficient and electric cars pay nothing at the pump. In the states that currently run one, passenger-vehicle rates fall between roughly 0.8 and 2 cents per mile. Commercial trucks pay considerably more, scaled by weight. Most programs today apply only to electric vehicles, plug-in hybrids, or high-mpg gas cars, and several states let drivers choose the per-mile charge as an alternative to a flat annual EV registration fee.
Why States Are Turning to Per-Mile Charges
The federal gas tax has sat at 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel since 1993. Cars have gotten far more efficient in the years since, and fully electric vehicles pay into that system not at all. State forecasts in Oregon, Michigan, California, and elsewhere project billions in lost highway funding over the next decade as EV adoption grows. A per-mile charge ties road funding to actual road use: someone who drives 20,000 miles a year pays more than someone who drives 5,000, whatever powers the car.
States That Charge a Mileage Tax Today
Oregon
Oregon’s OReGO program is the longest-running road usage charge in the country. Volunteer participants pay 2 cents per mile and receive a credit for the state fuel tax they pay at the pump.1Oregon Department of Transportation. OReGO Oregon also runs a separate, mandatory weight-mile tax for commercial trucks over 26,000 pounds, with rates from about 7 cents per mile for lighter trucks up to nearly 24 cents per mile for the heaviest rigs.2Oregon Department of Transportation. Mileage Tax Rates
Utah
Utah gives EV owners a choice: pay the flat annual registration surcharge, or enroll in the road usage charge program at 1.25 cents per mile for 2026, capped at $180 per year.3Utah Road Usage Charge Program. Utah Road Usage Charge Program Once a driver reaches roughly 14,400 miles, no further charges accrue for the year. Low-mileage drivers save compared to the flat fee.4Alternative Fuels Data Center. Road Usage Charge Program
Virginia
Virginia charges a highway use fee to owners of electric vehicles and gas vehicles rated at 25 mpg or higher. Drivers can opt into the Mileage Choice Program instead, paying a per-mile rate calculated from the highway use fee divided by an assumed 11,600 annual miles.5Vermont General Assembly. Fiscal Impacts of Oregon, Virginia, and Utah Road Usage Charge Drivers who go under that average come out ahead on the per-mile option.
Hawaii
Hawaii launched its road usage charge for electric vehicles in July 2025. EV owners choose between a $50 flat annual charge and a per-mile rate of $0.80 per 100 miles (effectively 0.8 cents per mile), capped at $50 per year. Odometers are typically read at the annual safety inspection, and the charge is collected at registration renewal.6Hawaii Department of Transportation. Hawaii Road Usage Charge Program With the cap matching the flat fee, drivers under about 6,250 miles per year save with the per-mile option.
Washington
Washington has passed legislation for a phased road usage charge. New electric vehicles purchased after mid-2025 face mandatory enrollment, while existing EVs can opt in voluntarily. The state plans to bring hybrids and high-efficiency gas vehicles into the mandatory program by 2029, with further expansion through 2035.
Whether the Tax Applies to Your Vehicle
For passenger vehicles, current state programs are aimed at cars that pay little or no gas tax. Battery-electric vehicles and plug-in hybrids are the primary group. Virginia extends its highway use fee to gas cars rated at 25 mpg or higher. If you drive a conventional gas car in a state without a mileage program, you continue to pay only fuel tax at the pump.
Heavy commercial trucks are the other group already subject to per-mile charges. Oregon’s weight-mile tax on trucks over 26,000 pounds predates any passenger-vehicle program by decades.2Oregon Department of Transportation. Mileage Tax Rates
How Your Miles Get Counted
Programs generally give you a choice of reporting method:
- A small OBD-II device that plugs into the diagnostic port under the dashboard and transmits mileage data wirelessly. Some include GPS to separate in-state from out-of-state miles; others track total distance only.
- Built-in vehicle telematics on newer cars, which report mileage through the car’s own cellular connection.
- A smartphone app that accepts odometer photos.
- Manual odometer readings taken at an annual inspection, with the charge calculated from the difference.
Federal Highway Administration evaluations of early state pilots found that most participants chose automated options over manual reporting.7Federal Highway Administration. Surface Transportation System Funding Alternatives Phase I Independent Evaluation – Section: Mileage Recording Approaches Explored By Phase I Sites
You Don’t Get Charged Twice If You Also Buy Gas
Drivers in a mileage program who also pump gas are not double-taxed. In Oregon, the state fuel tax you pay at the pump is automatically credited against your road usage charge. Your account manager tracks both sides, and your invoice shows the per-mile charge minus the fuel tax credit. You pay only the difference, and there is no separate refund to apply for.8Oregon Department of Transportation. FAQ – OReGO A pure electric vehicle pays the full per-mile amount, because no fuel tax was ever paid. Utah and Virginia work similarly, offering the per-mile charge as an alternative to a flat annual fee rather than an addition to it.3Utah Road Usage Charge Program. Utah Road Usage Charge Program Either way, you pay once for road use.
Miles Driven Out of State
With a GPS-enabled device, miles driven outside your home state are automatically excluded from the charge. Oregon’s program simply does not count miles that GPS shows occurred beyond the state border.8Oregon Department of Transportation. FAQ – OReGO Drivers who use a non-GPS option lose that automatic filtering. In Oregon, those drivers submit a form documenting mileage before and after leaving the state, and those miles are deducted on the honor system.
Privacy and Location Data
The most common objection to a mileage tax is surveillance. Program designs address this more carefully than most drivers expect. In Oregon’s OReGO program, the state never receives location data. Even if you choose a GPS-enabled device, routes and locations stay with the private account manager. ODOT receives only total miles driven, and drivers who want to avoid GPS entirely can choose an odometer-based option that records nothing about where they went.8Oregon Department of Transportation. FAQ – OReGO
Transportation policy guidance from the National Academies recommends that road usage charge laws destroy location data after the audit period, prohibit its use for anything other than fee collection, shield it from public records requests, and never require drivers to pick a location-tracking option.9Transportation Research Board. Road Usage Charge Guide – Section: Privacy Protection Several states have written these principles into their program rules.
Flat EV Fees Are the More Common Approach
Most states have not adopted a per-mile charge at all. Instead, at least 41 states impose a special annual registration fee on electric vehicles, ranging from $50 to $290, and many also charge a smaller fee on plug-in hybrids.10National Conference of State Legislatures. Special Fees on Plug-In Hybrid and Electric Vehicles Flat fees are simpler but blunt: a driver who puts on 30,000 miles a year pays the same as one who drives 3,000. In states like Utah and Hawaii that offer both, running the numbers on your annual mileage tells you which option costs less.
Penalties for Odometer Tampering
Because these programs rely on accurate odometer readings, federal penalties for tampering are steep. Disconnecting, resetting, or altering an odometer carries civil penalties of up to $10,000 per violation, capped at $1 million for a related series of violations. Knowing and willful odometer fraud can bring up to three years in prison.11Office of the Law Revision Counsel. 49 U.S. Code 32709 – Penalties and Enforcement State-level penalties for missing enrollment or payment deadlines vary. In voluntary programs today, consequences are minor. As states move to mandatory enrollment, late-payment interest and registration holds will likely become standard.
The Federal Pilot
Section 13002 of the Infrastructure Investment and Jobs Act created a national per-mile user fee pilot, funded at $10 million per year through fiscal year 2026. It recruits volunteers from all 50 states, the District of Columbia, and Puerto Rico to test whether a nationwide mileage fee is workable. The Secretary of the Treasury sets annual per-mile rates, which can differ for passenger cars, light trucks, and medium- and heavy-duty trucks based on their impact on roads, safety, congestion, and the environment.12Office of the Law Revision Counsel. 23 U.S. Code 503 – Research and Technology Development and Deployment13U.S. Department of Energy. Public Law 117-58 Infrastructure Investment and Jobs Act The pilot is a study, not a live tax; it does not currently create a charge on ordinary drivers outside the state programs described above.