Last Updated on August 1, 2025 by Michael
Like it or loathe it, many highways across the country have adopted dynamic tolling. This model sets prices based on the number of vehicles on the road at a specific time. It works by encouraging discretionary rush-hour drivers to use roads and highways at off-peak times. In other words, the aim is to even out traffic throughout the day.
The idea is that traffic flows more smoothly if a number of drivers can be enticed to travel at off-peak times. For drivers, the incentives can be significant. In the Minnesota I-35W corridor, for example, dynamic toll rates typically vary between 25 cents and $8, with peak-period tolls averaging between $1 and $3. In other words, traveling off-peak can save you a bundle.
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In the past few years, there has been a surge in interest in congestion tolling across the country. At least 12 states now using dynamic pricing on at least one tolled highway. They include California, Florida, Maryland, Texas and Virginia. Dynamic tolling remains most prevalent in large metro areas and on major corridors, with adoption expanding year by year as technology and demand-responsive tolling systems proliferate.
Around the world, Oslo, London, Singapore and Stockholm all use “congestion pricing” systems.
How Congestion Tolling Works
With congestion pricing, toll prices vary by time of day. Electronic toll technology collects payments. Traffic flows freely, while there are no toll booths. Highway authorities set toll rates in advance for different time periods. Alternatively, prices may be set dynamically. That means they may adjust every few minutes to ensure that the lanes are fully utilized.
Examples of Congestion Tolling in the U.S.
Dynamic tolling is becoming commonplace in many areas of the country. Here are a few examples:
In Colorado, dynamic tolling is active on the Central 70 express lanes and is scheduled for all express lanes in the state, including I-25 South Gap and I-70 Mountain Corridor. Tolls are adjusted every five to 15 minutes to manage demand and keep traffic moving efficiently.
Florida’s dynamic tolling operates on the I-4 Express lanes through Orlando, joining Express 95 in South Florida’s Interstate 95.
In California, dynamic tolling is in use on multiple managed express lanes, particularly in the San Francisco Bay Area, where pricing algorithms adjust tolls in real time in response to current traffic volumes.
In Northern Virginia, the 395 and 495 express lanes employ dynamic tolling, where toll rates are based on traffic speed and density to ensure minimum traffic speeds.
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Other states with managed lanes reported to use dynamic tolling include Texas, Minnesota, Georgia, and Washington (especially the I-405 corridor).
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