Tolling 101: The Structure Behind the Pennsylvania Turnpike

Between the 24-hours news cycle and the surge of mis- and disinformation in today’s digital age, distinguishing facts from fiction can be challenging. Beyond that, the tolling industry is complex, and its operational structures vary by agency and state.

So, to help you better understand how the Pennsylvania Turnpike Commission operates, we have pulled together a new series that addresses the most common misconceptions or myths.

Up first – understanding the Pennsylvania Turnpike Commission structure and finances.

Why Does Pennsylvania Have a Turnpike Commission?

Many states have turnpikes and commissions or boards such as Ohio, New Jersey, Massachusetts, Maine, Oklahoma, Florida, etc. In Pennsylvania, the state Legislature created the Pennsylvania Turnpike Commission to organize funding and construction for what became the Pennsylvania Turnpike.

Pennsylvania Gov. George Earle signed Act 21 and created the Pennsylvania Turnpike Commission in 1937 due to the Commonwealth’s inability to borrow money and fund the construction of the Turnpike. Instead, the roadway was funded through bonds and tolls collected to pay back those bonds. This allowed the highway to be built much sooner to benefit drivers.

To this day, the PA Turnpike does not receive state tax dollars for its operations or maintenance. The PA Turnpike is paid for and maintained by the drivers that use the PA Turnpike. Tolls are a user fee not a tax.

Is the Pennsylvania Turnpike Commission Part of The Pennsylvania Department of Transportation?

No, the Pennsylvania Turnpike Commission operates as an independent agency and functions as a quasi-governmental organization with its own governance and revenue sources. The Commission generates non-toll revenue to keep tolls as low as possible, including land and communication tower leases, concession and advertising agreements, utility permits, and the sale of surplus property.

The PA Turnpike is actively working on innovative options for future non-toll revenue sources, including fiber optic leasing and renewable energy projects.

Other States Have Merged Tolling Operations into Their DOTs. Why Can’t Pennsylvania?

Tolling structures vary by state. Unlike Florida, Massachusetts and Ohio whose tolling agencies are under their DOTs, the Pennsylvania Turnpike has unique constraints, including its independent financial and operational structures. Consolidating operations would cost significantly more than it would save and lead to inefficiencies.

Why Does the Pennsylvania Turnpike Still Charge Tolls, Despite Its Original Construction Costs Being Paid Off?

When a highway or roadway is built, attention is given to the initial construction costs. The ongoing costs of maintaining the roadway year after year are often overlooked. While the PA Turnpike's original construction costs were paid off early in 1956, the PA Turnpike has continued to expand to address the growing population and economic development needs of the Commonwealth.

Tolls pay for the new roadways as well as the required ongoing maintenance and upgrades for safety. Tolls, not taxes, pay for the maintenance of 565+-miles of roadway, the operating costs of 856 bridges, 140 buildings, nearly 90 interchanges and five tunnels.

The Turnpike is also required by the legislature to support statewide transportation funding through Act 44 with a $50 million annual payment to the Department of Transportation.

Is It True That the Pennsylvania Turnpike Is the Most Expensive Toll Road in the World?

No. Traveling on the PA Turnpike is NOT one of the most expensive rates in the country. Based on 2025 costs, the Pennsylvania Turnpike’s E-ZPass passenger rates rank 20th overall compared to other toll roads, bridges and tunnels in the United States. This is despite the burden of Act 44 and the fact that the PA Turnpike is one of the largest and oldest toll roads with numerous services, including 24/7 roadside assistance and dedicated state police.

More than 85% of our customers also take advantage of 50% savings with E-ZPass, the most cost-effective way to travel the PA Turnpike.

Why Does the PA Turnpike Continue to Raise Tolls?

In 2007, the state legislature passed Act 44, obligating the Commission to assist in funding statewide ground transportation beyond PA Turnpike operations. Since 2008, the PA Turnpike has provided more than $8 billion to the Commonwealth for this purpose. Act 44 debt service is the sole driver of annual toll increases. Prior to Act 44, the PA Turnpike only raised tolls five times in 64 years.

Why Is the Pennsylvania Turnpike in Debt?

The Pennsylvania Turnpike Commission has $16 billion in bonded debt, with $8 billion directly connected to Act 44 and another $8 billion connected to the costs of funding construction projects, including total reconstruction and expanded access.

Bonds are one of the most common and effective ways to finance construction and infrastructure projects – and are required for public works projects in Pennsylvania and other states. Other transportation authorities may not have the debt associated with Act 44, but it is common for large-scale transportation agencies to use debt to repay bonds over time. These bonds are used to provide upfront capital for significant infrastructure projects.

Isn’t The Pennsylvania Turnpike Commission’s Debt A Sign of Poor Financial Management?

No. Half of the Pennsylvania Turnpike Commission's debt is due to Act 44 of 2007, which required funding for statewide transportation beyond the PA Turnpike’s operation. Since 2008, the PA Turnpike has provided more than $8 billion to the Commonwealth for this purpose.

This led to higher debt beyond typical construction and expansion projects. Despite the financial burden, the Commission:

• Ended FY 2025 with expenses 11% under budget.
• Maintained operating costs 2.9% below 2017 levels.
• Limited operating expense increases to 2-3% annually.
• Refinanced $7.66 billion in debt, achieving $1.24 billion in cumulative cash flow savings.
• Returned to pre-Act 44 credit ratings and maintained “AA” now by four reporting credit agencies, signaling investor confidence and indicating financial health.

Are Toll Increases a Money Grab?

No. Annual toll increases on the PA Turnpike directly support Act 44, not the operating budget. The schedule, set in 2007, is unchanged and ensures successful operations and favorable debt ratings.

The toll increase rate will drop to 3.5% in 2027 and to 3% from 2028 to 2057. More than $965 million will be paid in 2026 for debt service.

Where Does My Toll Dollar Go?

The PA Turnpike reinvests revenues into the PA Turnpike’s infrastructure, safety and debt repayment. Fifty-two percent of every toll dollar goes toward debt service, nearly double the PA Turnpike’s budgeted operating expenses.

The PA Turnpike’s Fiscal 2026 Ten-Year Capital Plan invests $8 billion over the next ten years (FY 2026 - 2035) back into the roadway for repair, safety and capacity needs.