California Transportation Improvement Fee: Rates, EV Fee, Exemptions

The California Transportation Improvement Fee is an annual charge the DMV adds to your vehicle registration under the Road Repair and Accountability Act of 2017 (Senate Bill 1). You’ll pay between $33 and $231 per year depending on your vehicle’s market value, and the fee is collected automatically whether you’re registering a new purchase or renewing an existing registration.1California Department of Motor Vehicles. Registration Fees It applies to passenger cars, trucks, motorcycles, and commercial vehicles registered in the state.2California Department of Motor Vehicles. Vehicle Industry News 2017-25 – New Transportation Improvement Fee

How Much You’ll Pay

The DMV sorts vehicles into five value tiers and charges a flat annual amount for each:1California Department of Motor Vehicles. Registration Fees

  • $0 to $4,999 in market value: $33 per year
  • $5,000 to $24,999: $66 per year
  • $25,000 to $34,999: $132 per year
  • $35,000 to $59,999: $198 per year
  • $60,000 and higher: $231 per year

The TIF appears as its own line item on your DMV bill, separate from the vehicle license fee, weight fee, and other registration charges.

How Your Vehicle’s Value Is Determined

Market value comes from the purchase price on your bill of sale or titling document, or from a Kelley Blue Book valuation if no sale price is available. If your vehicle depreciates below a tier threshold over time, you move into the lower bracket automatically — the DMV applies the amount based on the market value already in its system, and no request is needed from you.

The amounts above reflect current CPI-adjusted figures, not the original SB 1 rates.3California Department of Motor Vehicles. Vehicle Industry Registration Procedures Manual – Appendix 1F – Fees When the law took effect, the tiers were $25, $50, $100, $150, and $175. Annual Consumer Price Index adjustments have pushed every tier upward since then, so older articles and forum posts citing the original figures are out of date.

Extra Fee for Electric Vehicles

If you own a zero-emission vehicle from model year 2020 or newer, you’ll pay a separate Road Improvement Fee on top of the TIF. It was set at $100 when it took effect in July 2020, and CPI adjustments have brought it to $121.1California Department of Motor Vehicles. Registration Fees The fee exists because EVs don’t pay gas tax, which has historically funded road maintenance.

One wrinkle catches new EV buyers off guard: the Road Improvement Fee does not apply to the initial registration of a newly purchased zero-emission vehicle bought from a licensed dealer.4California Legislative Information. California Code VEH – 9250.6 You won’t see it at the dealership. It shows up for the first time on your first renewal and every year after. A 2024 EV valued at $45,000, for example, would owe $198 in TIF plus $121 in Road Improvement Fee, or $319 between the two charges before any other registration costs.

Who Doesn’t Pay

A few categories of vehicles are exempt:

  • Vehicles on Planned Non-Operation (PNO) status. By filing for PNO, you’re declaring the vehicle won’t be driven, towed, or parked on public roads for the entire registration year. No road use, no TIF. The fee resumes as soon as you put the vehicle back into active status.5California Department of Motor Vehicles. Planned Nonoperation Filing
  • Trailers enrolled in the Permanent Trailer Identification (PTI) program. These follow a separate fee structure and pay a maintenance service fee every five years rather than annual registration charges.6California Department of Motor Vehicles. Vehicle Industry Registration Procedures Manual – Maintenance Service Fee or PNO Every Five Years
  • Vehicles owned by state agencies and other government entities.

Historical and special-interest plate vehicles are registered under separate plate programs with their own fee rules, and whether the TIF applies depends on the plate type and how the vehicle is used.

What Happens If You Pay Late

You can’t pay the TIF separately from the rest of your registration bill. If you miss your renewal deadline, the whole package goes delinquent and penalties stack on top:7California Department of Motor Vehicles. Penalties

  • 1 to 10 days late: 10% of the vehicle license fee, plus a $10 registration late fee and $10 CHP late fee
  • 11 to 30 days late: 20% of the vehicle license fee, plus $15 in flat late fees
  • 31 days to one year: 60% of the vehicle license fee, plus $30 in flat late fees
  • Over one year to two years: 80% of the vehicle license fee, plus $50 in flat late fees
  • Over two years: 160% of the vehicle license fee, plus $100 in flat late fees

The percentage penalties apply to the vehicle license fee and weight fee portions of your bill rather than to the TIF itself, but because the DMV won’t accept a partial payment, the TIF goes unpaid until the whole balance is settled. The DMV mails renewal notices about 60 days before your registration expires, which gives you time to pay online, by mail, or at a field office without a penalty.

Where the Fee Goes

TIF revenue flows into the Road Maintenance and Rehabilitation Account created by SB 1 to address California’s deferred road and bridge maintenance.8California State Controller’s Office. SB1 Road Maintenance and Rehabilitation Program FAQs The money is split between state highway work — pavement rehabilitation and bridge repair through the State Highway Operation and Protection Program — and direct allocations to cities and counties for local street repairs and safety projects. A portion also goes to public transit, including commuter rail and bus service.9Caltrans. Senate Bill 1 Revenues