Maryland Lawmakers Considered New EV Mileage Taxes
State officials are weighing a per-mile tax on electric vehicles to address declining gas tax revenue.
Updated on Sept. 30, 2026 in Electric Vehicles
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Maryland legislators have proposed a mileage-based tax for electric vehicle drivers to stabilize funding for state infrastructure. This shift aims to compensate for the long-term decline in gasoline tax collections.
Why it matters
As electric vehicle adoption grows, gas tax revenue is projected to fall by $300 million by 2031, threatening the funding that supports critical road, bridge, and transit projects.
Gas tax revenue currently accounts for 18% of the Maryland Department of Transportation tax collections. The state expects a $300 million drop in this revenue stream by 2031.
The players
Maryland Department of Transportation
The state agency responsible for managing Maryland's transportation infrastructure, including highways and public transit systems.
The details
The proposed policy would transition road funding away from consumption-based gas taxes toward a mileage-based fee structure. This mechanism ensures that owners of electric vehicles, who do not contribute through gasoline purchases, share in the maintenance costs for state roads, bridges, and public transit systems like the Baltimore Light Rail.
Timeline
2031 is the year by which gas tax revenue is projected to drop by $300 million.
The Home Front
This move aligns with a broader trend of states re-evaluating transportation funding as fuel efficiency and electric vehicle adoption reduce traditional gas tax contributions. It marks a significant shift in how states plan to maintain the long-term viability of their existing transit infrastructure.
Maryland electric vehicle owners should stay informed about legislative updates coming out of Annapolis regarding potential registration or mileage-tracking requirements. Homeowners should also monitor how these shifts might impact long-term municipal and state-level infrastructure funding in their local areas.
The takeaway
The transition to electric vehicles is creating a funding gap that states are beginning to address through new taxation models. Keep an eye on legislative session announcements to see how potential per-mile fee structures might affect your annual vehicle ownership costs.
Further reading
For context on how state policies are evolving to support modern transit, visit our Electric Vehicles section.
Source note: This article includes information reported by The Cumberland Times-News.
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Should states replace gas taxes with fees based on the number of miles you drive?
