The California Transportation Improvement Fee is an annual charge added to your DMV vehicle registration, created by the Road Repair and Accountability Act of 2017 (Senate Bill 1). It ranges from $33 to $231 per year depending on your vehicle’s market value, and the DMV bills it automatically when you register a new vehicle or renew.1California Department of Motor Vehicles. Registration Fees The money funds road repairs, bridge maintenance, and transit projects across the state.
How Much You’ll Pay
The DMV sets your fee based on the vehicle’s market value, drawn from the purchase price on your bill of sale, titling document, or a Kelley Blue Book valuation. There are five tiers:1California Department of Motor Vehicles. Registration Fees
- $0 to $4,999: $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
These are the current CPI-adjusted amounts, not the original 2017 rates.2California Department of Motor Vehicles. Vehicle Industry Registration Procedures Manual – Appendix 1F – Fees The DMV bumps them upward each year based on the California Consumer Price Index, which is why the numbers you see now are higher than the ones quoted in older articles and forum posts about SB 1. If your vehicle depreciates below a tier threshold, the lower amount applies automatically. You don’t need to request a recalculation.
The fee shows up as a separate line item on your DMV bill and applies to passenger cars, trucks, motorcycles, and commercial vehicles.3California Department of Motor Vehicles. Vehicle Industry News 2017-25 – New Transportation Improvement Fee It travels with the vehicle record, so if you buy a used car, you pick up the TIF as part of completing the title transfer.
Extra Fee for Electric Vehicles
If you own a zero-emission vehicle from model year 2020 or later, you’ll pay a separate Road Improvement Fee on top of the TIF. The base was set at $100 when the charge took effect in July 2020, and CPI adjustments have moved it to $121.1California Department of Motor Vehicles. Registration Fees The reasoning: EVs don’t generate gas tax revenue, which has historically paid for road maintenance.
One quirk catches EV buyers off guard. The Road Improvement Fee doesn’t apply to the initial registration of a new zero-emission vehicle purchased from a licensed dealer.4California Legislative Information. California Code VEH – 9250.6 You’ll see it for the first time on your first renewal, then every year after. So a 2024 EV valued at $45,000 owes both the $198 TIF and the $121 Road Improvement Fee, adding $319 to that year’s bill before any other registration charges.
Who Doesn’t Have to Pay
A few categories of vehicles skip the TIF:
- Vehicles on Planned Non-Operation status. Filing PNO with the DMV is a declaration that the vehicle won’t be driven, towed, or even parked on public roads for the entire registration year. No road use, no TIF. Returning the vehicle to active status brings the fee back.5California Department of Motor Vehicles. Planned Nonoperation Filing
- Trailers enrolled in the Permanent Trailer Identification program. PTI trailers follow a separate structure and pay a maintenance service fee every five years instead of annual registration.6California Department of Motor Vehicles. Vehicle Industry Registration Procedures Manual – Maintenance Service Fee or PNO Every Five Years
- Government-owned vehicles operated by state agencies and public entities.
Vehicles with historical or special-interest plates are registered under distinct plate programs with their own fee rules. Whether the TIF applies depends on the plate type and how the vehicle is used.
What Late Payment Costs
The TIF is bundled into your total registration bill, so missing the deadline means penalties across the whole package. The DMV mails renewal notices about 60 days before expiration, and the schedule escalates fast: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 are calculated on the vehicle license fee and weight fee portions, not the TIF itself. But you can’t pay the TIF separately from the rest of your registration, so the whole bill compounds together when you miss the date.
Where the Revenue Goes
TIF payments flow into the Road Maintenance and Rehabilitation Account, which SB 1 created to address California’s backlog of deferred maintenance.8California State Controller’s Office. SB1 Road Maintenance and Rehabilitation Program FAQs The TIF alone generates roughly $2 billion per year, and it’s one piece of a larger SB 1 revenue package that also includes fuel tax increases and diesel surcharges.9Caltrans. Senate Bill 1 Revenues The money splits between state highway rehabilitation and direct allocations to cities and counties for local street repairs, with a portion also going to public transit. If you want to see specific projects, the state maintains a searchable map of more than 28,000 project records at build.ca.gov.10Building CA. Building California Maps