Washington state drivers could see a 6-cent increase in the gas tax starting July 1 under a proposed transportation funding deal in the Legislature. If approved, the state’s gas tax would rise from 49.4 cents to 55.4 cents per gallon—its first increase since 2016—with additional 2% annual hikes tied to inflation.
The proposal, outlined in Senate Bill 5801, stems from bipartisan efforts to address a projected $8 billion shortfall over the next six years. The revenue would support major highway projects, ferry operations, culvert replacements for fish migration, and bolster the Washington State Patrol.
House Transportation Chair Jake Fey (D-Tacoma) said negotiations are nearing completion. The new package is expected to generate $3.2 billion over six years—almost half of it from the gas tax alone.
The deal also includes diesel tax hikes, new fees on heavy-duty trucks, luxury vehicle sales, private jets, and a $1-per-person surcharge on large event venues. Speeding violations in work zones are projected to raise $138 million.
However, lawmakers dropped several earlier proposals, including increased EV registration fees, e-bike surcharges, and ferry fare hikes. Notably absent is a road usage fee based on vehicle fuel efficiency—a measure long supported by Democrats but scrapped due to time constraints.
The plan maintains tolling across the entire SR 520 corridor, mandates biodiesel for state ferries, and introduces tax exemptions for zero-emission buses. The Legislature is expected to vote on the proposal this week, ahead of the session’s scheduled close on Sunday.
