Oregon Gas Tax Revenue Falls 2.2% in 2026
Motor fuels tax collections are down as more Oregonians drive efficient and electric vehicles.
Updated on Nov. 6, 2026 in Electric Vehicles
Live Poll
Should Oregon raise its gas tax to pay for road maintenance?
Motor fuels tax revenue in Oregon fell 2.2% in 2026 compared to the first nine months of 2025. The decline reduces the funding available to state transportation agencies for maintaining and improving roads.
Why it matters
Oregon's transportation system relies heavily on fuel tax revenue, and a shrinking base means fewer dollars for road and bridge upkeep. The trend reflects a broader shift toward fuel-efficient and electric vehicles.
Motor fuels tax revenue is down 2.2% for 2026 compared with the first nine months of 2025, while the average Oregon car now gets over 25 miles per gallon, up from 21 in 2016. More than 140,000 plug-in and electric vehicles are registered in the state.
The players
Oregon State Legislature
The state body that would need to act to change the current $0.40-per-gallon gas tax rate, which remains flat unless lawmakers take action.
The details
Oregon gas consumption peaked in 2018 as residents increasingly bought efficient and electric vehicles. Gas tax revenue kept rising through scheduled two-cent increases in 2020, 2022 and 2024, but the state rate of $0.40 per gallon has no further scheduled increases.
Timeline
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: A war in Iran began, driving a spike in fuel prices.
2026: Motor fuels tax revenue fell 2.2% year to date.
Roadmap
Oregon's gas tax rose by two cents in each of 2020, 2022 and 2024, a schedule that kept revenue climbing even as drivers grew more efficient. With no further increases on the books, the state's fuel tax base now faces the pressure of falling gallon sales and a nationwide spike in fuel prices.
Oregon drivers pay a flat $0.40-per-gallon state gas tax with no scheduled increases ahead. Road conditions may decline as transportation agencies face tighter budgets, which could mean rougher roads, more delays and more closures.
The takeaway
Drivers who switch to efficient or electric vehicles reduce their fuel tax contribution, which shifts how the state funds roads. Watching for legislative action on the gas tax will show whether that funding gap gets addressed.
Further reading
For broader context on the vehicles driving this shift, explore our coverage of Electric Vehicles.
Live Poll
Should Oregon raise its gas tax to pay for road maintenance?
