Drivers License Surcharge

Most Texas drivers pay a $25 surcharge to apply for or renew their driver license every six years. However, these fees can vary depending on the type and expiration date of the license being issued. This surcharge goes directly to the Texas Mobility Fund—a fund that helps pay for the construction, reconstruction, acquisition, and expansion of state highways. Revising this surcharge rate could support funding new road infrastructure.

Fees are charged for the issuance of a new license, a continuation of a license, or reinstatement of a license.  State Transportation Code Section 521, Driver’s Licenses and Certificates, specifies the fees the Texas Department of Public Safety can levy by license type and purpose. Any fee increase would likely require changes to this code. The table below illustrates current Texas driver license fees.

• Help funds keep pace with rising highway construction costs. Since 1991, roadway construction costs have almost doubled, while transportation revenues have grown at a much slower rate. Revising the driver license surcharge would help the slower-growing transportation revenues keep pace with rising construction costs.

• Reduces the need for borrowing to finance transportation improvements.
• A $5 license surcharge will yield an estimated $341 million for transportation from 2016 to 2019.
• A $10 license surcharge will yield an estimated $682 million from 2016 to 2019.

• The Texas Legislature and the public have recently been opposed to fee increases.
• Driver license renewal fees are not an annual fee. They are only collected once every six years per driver (under age 85). New and replacement licenses are unscheduled and vary in number from year to year.
• Driver license renewal fees are not a direct user-based fee. All Texans who apply or renew their driver license must pay the fee, regardless of how much they drive or even if they own a vehicle.

• The costs to increase the driver license surcharge are relatively low. This is because the collection and enforcement structures are largely already in place for the collection of driver license fees.
• Legislative action is required to implement this funding change. Citizens and their representatives may oppose legislation that raises this fee. Similar opposition has been seen in other states that have raised their gas tax, such as Wyoming.
• Voters/users would need to be informed regarding the costs and benefits, including information about how state transportation funds are spent and how the fee increase would benefits safety, congestion, and pavement and bridge quality.