Oregon Gas Tax Revenue Falls as EVs Grow

Oregon drivers should expect tighter road budgets while the gas tax stays flat at $0.40 per gallon.

Updated on Nov. 6, 2026 in Electric Vehicles

Oregon Gas Tax Revenue Falls as EVs Grow

Live Poll

Should Oregon raise its gas tax to pay for road maintenance?

Motor fuels tax revenue in Oregon is down 2.2% in 2026 compared with the first nine months of 2025, reducing the money available to maintain and improve the state's transportation system. Drivers across Oregon, including owners of the more than 140,000 plug-in and electric vehicles registered in the state, feel the effects of a gas tax base that is shrinking.

Why it matters

Oregon's gas tax is a per-gallon levy, so as cars become more fuel-efficient and drivers buy electric vehicles, the revenue that pays for roads and bridges falls even when people are still driving. A nationwide spike in fuel prices in 2026 has accelerated the decline in gas consumption and the revenue drop.

Motor fuels tax revenue is down 2.2% for 2026 compared with the first nine months of 2025. Oregon's state gas tax remains $0.40 per gallon, and the last three scheduled two-cent increases took effect in 2020, 2022 and 2024.

The players

Oregon Legislature

The state lawmaking body that sets the state gas tax rate and would need to act to change the $0.40 per gallon levy.

The details

Oregon's gas tax is collected per gallon of fuel sold, so revenue tracks gallons consumed rather than the miles driven or the price paid. Oregon gas consumption peaked in 2018, and since then more efficient gasoline cars and a growing fleet of electric vehicles have pulled total fuel use down. Scheduled two-cent increases in 2020, 2022 and 2024 kept revenue rising for a time, but with no further scheduled increases the tax stays flat at $0.40 per gallon unless lawmakers act.

2016: The average Oregon car got 21 miles per gallon.
2018: Oregon gas consumption peaked.
2020, 2022 and 2024: Two-cent gas tax increases took effect.
Spring 2026: The war in Iran began, driving a fuel price spike.
2026: Motor fuels tax revenue fell 2.2% year to date.

The Home Front

Oregon's gas tax has been a flat per-gallon levy since its last scheduled increase in 2024, so its funding power erodes as fuel efficiency and electric vehicle adoption grow. Households across the state are feeling this shift as road maintenance budgets tighten while the average car now gets over 25 miles per gallon.

If you drive in Oregon, expect the state's transportation budget to stay tight while the gas tax remains at $0.40 per gallon, so plan for rougher roads and longer delays on routes you use often. If you own an electric or plug-in hybrid vehicle, your fuel-tax contribution to the state road fund is shrinking as the gas tax base falls, so watch for any legislative proposals that would change how EV owners pay for roads.

The takeaway

Oregon's gas tax funds roads only as long as people buy gasoline, so the falling fuel base is a signal to track the next legislative session closely. Keep your vehicle's maintenance records and registration documents current so you are ready for any change in fees or tax rules.