Maryland Lawmakers Considered Mileage Tax on EVs

State officials weighed a shift to mileage-based taxes as revenue from gasoline collections continues to drop.

Updated on Sept. 30, 2026 in Electric Vehicles

Maryland Lawmakers Considered Mileage Tax on EVs

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Should states replace gas taxes with fees based on the number of miles you drive?

Maryland legislators are weighing a proposal to implement mileage-based taxes for electric vehicle owners. The potential change follows projections that gas tax revenue will continue to decline as more residents adopt electric alternatives.

Why it matters

The proposal aims to address a critical funding gap in the state's transportation budget. With gas tax revenue projected to drop, officials are seeking new methods to sustain the infrastructure projects that connect communities across Maryland.

Gas tax revenue currently accounts for 18% of the Maryland Department of Transportation tax collections. Projections indicate this revenue stream will shrink by $300 million by 2031.

The players

Maryland Department of Transportation

This state agency manages the infrastructure and transit funding that maintains the state's roads, bridges, and public transit systems.

The details

The state's Transportation Trust Fund relies on these collections to finance critical state road, bridge, and transit projects. Recent upgrades to the Baltimore Light Rail system are among the key infrastructure initiatives funded through this mechanism.

2031 is the year by which gas tax revenue is projected to fall by $300 million.

Roadmap

This move signals a broader transition in the automotive landscape as states rethink how to fund infrastructure in an era where electric vehicles do not contribute to traditional fuel taxes. It reflects a shift across the car industry as revenue models adapt to the decline of internal combustion vehicles.

Electric vehicle owners in Maryland could see a significant change in how they contribute to state infrastructure costs if a per-mile tax is implemented. This policy shift would directly affect the annual cost of vehicle ownership for those transitioning away from gas-powered cars.

The takeaway

As states look for new ways to fund infrastructure, drivers should prepare for a potential shift away from fuel-based taxation toward usage-based models. Monitoring state legislative sessions will be essential for EV owners to understand upcoming changes to their tax obligations.