California Considers New Per-Mile Tax for All Drivers

State officials are weighing a mileage-based fee that could cost the average California household $900 annually.

Updated on Oct. 29, 2026 in Electric Vehicles

California Considers New Per-Mile Tax for All Drivers

Live Poll

Should states replace gas taxes with per-mile fees to fund road repairs?

California gubernatorial candidate Xavier Becerra has expressed openness to a potential mileage-based vehicle tax. The policy would replace traditional fuel taxes by charging drivers a fee for every mile driven to fund state road maintenance.

Why it matters

As more Californians switch to electric vehicles, the state is seeking alternative ways to fund infrastructure repair. This shift aims to address the revenue gap caused by drivers who do not pay traditional gasoline taxes.

The proposed fee ranges from 6 to 9 cents per mile, which is estimated to cost the average driver logging 15,000 miles annually about $900. This rate is calculated to be equivalent to an 87-cent increase in the state gas tax per gallon.

The players

Xavier Becerra

A candidate for governor of California currently weighing potential changes to state road funding.

Carl DeMaio

An assemblyman who provided estimates on potential per-mile costs for drivers.

The details

The proposed system would replace traditional gas taxes by tracking the total distance a vehicle travels. Officials are exploring this model because electric vehicle owners currently bypass fuel-based road maintenance funding. While pilot programs have been tested previously, including a 2018 state effort, local attempts to implement similar fees have faced challenges, as seen in San Diego County.

2018: California included a mileage fee pilot in SB 1.
2021: San Diego County officials abandoned a local fee attempt.
October 28, 2026: Xavier Becerra discussed the potential mileage tax.

The Home Front

The proposed shift toward a vehicle-miles-traveled fee represents a significant evolution in how California approaches long-term infrastructure maintenance. This move follows the framework established by California Senate Bill 1, which previously set the stage for exploring new road-funding mechanisms.

California drivers should track their annual mileage to estimate how a potential 6-to-9-cent-per-mile fee could affect their household transportation budget. Families planning future vehicle purchases may want to factor these potential policy shifts into their long-term cost calculations.

The takeaway

The move toward a mileage-based fee marks a potential shift in state road maintenance funding to capture revenue from non-gasoline vehicles. Households should prepare by monitoring legislative updates regarding potential tax changes to state vehicle registration and road use fees.