April 24, 2022 – Fuel taxes account for 84 percent of federal and 29 percent of state highway funds. But where will the funding come from when more and more drivers switch to electric vehicles?
“The road tax is built into the price of gas. That money goes to support road infrastructure. And EVs don’t fuel up, so electric car drivers don’t contribute in that way,” says Gabe Shenhar, associate director of Consumer Reports’ auto test program.
Currently, the federal tax on gasoline is 18.4 cents per gallon. The average state gas tax is 31 cents; it ranges from 8 cents per gallon in Alaska to 51.1 cents per gallon in California. Some states have compensated for that lost revenue by doubling the registration fees for EVs, for instance. Another approach is to increase tolls on roads and bridges, with every driver paying the same toll, no matter what type of car they drive.
