This paper presents a novel data encoding method for chipless radio frequency identification (RFID). Utilizing this method can reduce the required frequency bandwidth for data encoding in RFID tags. Accordingly, each frequency in the transmitted signal from the chipless tag can carry a code equal to a base-3 number. Higher utilization of the transmitted signal results in a lower frequency bandwidth requirement. The proposed method only uses the phase of transmitted signal for data encoding. Furthermore, simple encoding method, low cost, and capability of these structures to be printed on different dielectrics, makes it a suitable choice for mass production RFID applications.