Anyone paying attention to the news in the past few years has heard rumblings about a road charge program that would make California drivers pay a fee for each mile they drive. It seems to pop up again now and then, so what’s the status of this proposed mileage tax, and why is the state still considering it when residents are already paying gas taxes, auto insurance, and more? Crown Reinas Insurance Agency has the answer.

More Electric Vehicles Means Dwindling Gas Taxes

Right now, the state gets money to do things like repair roads and support public transportation from the taxes you pay when you buy gasoline. However, the increasing numbers of electric cars that never need to go to the gas station mean that fewer drivers are paying gas taxes. So, the funds for those repairs and transportation improvements are shrinking. The state wants to find a way to ensure electric-car drivers are paying into the fund. The solution that many think will work is a road mileage tax.

So far, the state has had two pilot studies, one in 2017 and one that wrapped up in January 2025. (San Diego County tried to implement a regional version of the tax but dropped the plan after widespread opposition.) The state’s two pilot studies looked at how the fees would be collected and what methods might make it easier to monitor actual car mileage. Participants received gas tax credits in exchange for paying the mileage fees. So, as of late 2025, the state is still evaluating the results. It’s worth noting that Hawaii actually implemented its own mileage fee for electric vehicles in July 2025, and that may provide more information for California to consider.

No matter what the state does with the road charge, you’re still going to need auto insurance in California. Give Crown Reinas Insurance Agency a call now to find a great insurance policy.