ANNAPOLIS, Md. — The Maryland Transportation Authority failed to use several available collection methods as unpaid tolls and penalties tied to out-of-state vehicles climbed to more than $818 million, according to a new state audit.
The Office of Legislative Audits released its fiscal compliance audit of the Maryland Transportation Authority on Aug. 27, 2026. The review covered operations from March 2020 through May 2025, with some more recent information examined as part of the audit.
As of January 2026, unpaid tolls and penalties associated with out-of-state vehicles totaled $818.1 million, including $230.9 million in unpaid tolls and $587.2 million in penalties.
Auditors found approximately $668.7 million, or 82% of the total, had been outstanding for more than one year. Of that amount, $386.3 million had remained unpaid for more than three years.
Virginia motorists accounted for the largest individual state total at $234.7 million, followed by Pennsylvania at $97.5 million, New Jersey at $80.7 million, Florida at $63 million and North Carolina at $58.6 million. Vehicles registered in all other states accounted for a combined $283.6 million.
The totals include both the original tolls and civil penalties. Maryland generally assesses a $25 penalty when a video toll remains unpaid after its due date.
Auditors Say Additional Collection Options Were Available
The audit found that MDTA sent notices to registered vehicle owners and assessed penalties but had not taken several other available steps to collect the outstanding money.
As of February 2026, MDTA had not entered into toll-enforcement reciprocity agreements with other states. Such agreements could allow another state to flag or suspend a motorist’s vehicle registration for qualifying unpaid Maryland tolls.
Auditors also found MDTA had not contracted with a third-party collection agency and had not sought approval from the Maryland Department of Budget and Management to refer the debts to the state’s Central Collection Unit.
The Office of Legislative Audits recommended that MDTA pursue all three options.
Concerns over the unpaid out-of-state tolls had previously been raised by lawmakers. MDTA reported in January 2025 that it was optimistic about establishing its first reciprocity agreement, but auditors found that agreement had still not been finalized as of July 2026.
Pennsylvania Agreement In Development
In its response to the audit, MDTA agreed that additional collection efforts are needed and detailed plans for a reciprocal enforcement agreement with Pennsylvania.
MDTA and the Maryland Motor Vehicle Administration are working with the Pennsylvania Turnpike Commission and PennDOT on an agreement that could allow vehicle registrations to be flagged or suspended when motorists owe qualifying toll debt in the neighboring state.
The agencies are targeting January 2027 for execution of the agreement and fall 2027 for the program to become operational.
Pennsylvania was selected for Maryland’s first agreement in part because its residents owe the second-highest amount of unpaid Maryland tolls and penalties. MDTA also reported discussions with Virginia and the New York Thruway about potential future agreements.
MDTA also agreed to hire an outside collection agency and reported that it was developing a request for proposals after meeting with nine firms in the toll-collection industry. The agency projects that effort could be completed during the third quarter of 2027.
MDTA disagreed with the recommendation to refer the out-of-state debts to Maryland’s Central Collection Unit, arguing the unit has limited tools for pursuing nonresident motorists and that collection costs could exceed the money recovered.
The agency noted that Maryland has collected approximately $119.3 million in outstanding tolls and penalties from Maryland residents since fiscal year 2023, in part through mechanisms such as intercepting state tax refunds, but those tools generally are not available for motorists who live outside Maryland.
The audit also identified a separate cybersecurity-related finding. Details of that finding and the associated recommendations were redacted from the publicly released report as required by state law.
Read the full MTA audit report below:
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