In order to alleviate the urban traffic congestion effectively and realize the intelligent traffic guidance, it needs to obtain vehicle’s dynamic GPS information real-time. The traditional vehicle GPS information collection system is based on wireless sensor network. Because of the interference in urban’s complex electronmagnetic environment, its system performance is not stable and it’s difficult to guarantee the real-time and reliablility. This paper puts forward a kind of design which based on UHF RFID technology, it can collect the vehicle GPS information under the environment of urban. This system uses the UHF RFID technology to replace the traditional wireless sensor network, it can collect and process the mobile vehicle’s GPS information fastly with non-contact. Fistly, this paper introduces the system’s hardware and software design, and then build a simulation environment for the system. At last we do some simulation experiments, the simulation results show that the system performance is good and can satisfy the practical requirements.