California Proposes New Tax on Driving Miles

Critics say the vehicle-miles-traveled tax would be an added burden on commuters and businesses.

Published on Feb. 9, 2026

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California legislators are proposing a new vehicle-miles-traveled (VMT) tax that would charge drivers for every mile they drive. This tax would be in addition to the already high gas taxes and other transportation-related fees that Californians pay. Critics argue the VMT tax would be an unfair burden, especially on those who must commute long distances due to the state's housing affordability crisis.

Why it matters

The proposed VMT tax is seen by many as another example of California lawmakers adding new taxes and fees without fully considering the impact on residents and businesses. With gas prices expected to rise sharply in the coming years, the VMT tax could significantly increase transportation costs for both individuals and companies operating fleets of vehicles.

The details

The VMT tax proposal would charge drivers a fee for every mile they drive, on top of the existing state gas tax of over 70 cents per gallon, as well as federal excise taxes, low carbon fuel taxes, and local taxes. For a two-car family, the VMT tax could cost an additional $4,000 per year. Businesses that rely heavily on driving, such as delivery services, could face even higher costs.

  • The VMT tax proposal is currently being considered by the California legislature.
  • If passed, the VMT tax could go into effect as early as 2027.

The players

Andy Caldwell

The executive director of COLAB in Santa Barbara County and host of The Andy Caldwell Radio Show.

Governor Gavin Newsom

The governor of California who would have the power to veto the VMT tax bill if it reaches his desk.

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What they’re saying

“If California legislators have their way, in effect, every road in our state will become a toll road, including your own driveway!”

— Andy Caldwell, Executive Director, COLAB (calcoastnews.com)

“Please call Governor Newsom at (916) 445-2841 and urge him to threaten a veto of the VMT bill long before it has a chance to get to his desk!”

— Andy Caldwell, Executive Director, COLAB (calcoastnews.com)

What’s next

Governor Newsom would need to decide whether to veto the VMT tax bill if it passes the state legislature.

The takeaway

The proposed VMT tax in California is seen by critics as an added financial burden on residents and businesses already struggling with high gas prices and the state's housing affordability crisis. The tax could significantly increase transportation costs for both individuals and companies.