Every time you fill up your tank at the gas station, a portion of what you pay goes towards taxes. These taxes are a combination of federal and state levies, which together fund infrastructure projects like road maintenance and public transportation. However, the amount of tax on a gallon of gasoline can vary significantly from state to state. Understanding these differences can offer insights into why gas prices fluctuate across the country and how these taxes impact your wallet.
At the federal level, the gas tax is straightforward. As of 2023, the federal tax on gasoline is 18.4 cents per gallon. This rate has been unchanged since 1993, and while there have been discussions about increasing it to match inflation and infrastructure needs, no changes have been enacted. The federal tax is used primarily to fund the Highway Trust Fund, which supports highway and public transportation projects across the United States.
State taxes, on the other hand, add another layer of complexity. Each state sets its own tax rate, which can include fixed rates per gallon, additional sales taxes, and fees for environmental programs. These rates can differ widely, reflecting various budgetary needs and policy priorities. Let’s take a closer look at how much each state adds in taxes to a gallon of gasoline.
Alabama: Alabama imposes a state gas tax of 28 cents per gallon. This includes a base rate of 24 cents, with additional local taxes that can vary.
Alaska: With a state tax of just 14.66 cents per gallon, Alaska has one of the lowest gas taxes in the country. This includes a base rate of 8 cents and additional fees.
Arizona: Arizona’s gas tax is 18 cents per gallon. The state does not have additional local gas taxes.
Arkansas: Arkansas charges a state tax of 24.8 cents per gallon, which helps fund state infrastructure projects.
California: California has the highest state gas tax in the nation at 68.15 cents per gallon. This high rate reflects the state’s ambitious infrastructure and environmental goals.
Colorado: In Colorado, the state gas tax is 22 cents per gallon. This includes a base tax and additional fees for environmental programs.
Connecticut: Connecticut imposes a state gas tax of 25 cents per gallon, along with other variable fees.
Delaware: Delaware’s state gas tax is 23 cents per gallon, which is used for transportation funding.
Florida: Florida charges a combined state and local gas tax of around 42.4 cents per gallon, which includes a base rate and additional local taxes.
Georgia: The state gas tax in Georgia is 31.6 cents per gallon, which is used to support state infrastructure improvements.
Hawaii: Hawaii’s gas tax is 16 cents per gallon, with additional county taxes that can raise the total significantly depending on the island.
Idaho: Idaho charges a state tax of 33 cents per gallon, one of the higher rates in the Mountain West region.
Illinois: In Illinois, the state gas tax is 39.2 cents per gallon, with additional local taxes in cities like Chicago.
Indiana: Indiana’s state tax is 33 cents per gallon, which contributes to the state’s transportation budget.
Iowa: Iowa charges a state gas tax of 30 cents per gallon, with adjustments for ethanol-blended fuels.
Kansas: Kansas has a state gas tax of 24 cents per gallon, which helps fund state road projects.
Kentucky: Kentucky’s gas tax is 26.6 cents per gallon, which supports state and local road maintenance.
Louisiana: Louisiana imposes a state gas tax of 20 cents per gallon, which is relatively low compared to other states.
Maine: Maine charges a state gas tax of 30 cents per gallon, with funds allocated to infrastructure projects.
Maryland: Maryland’s state gas tax is 36 cents per gallon, with a variable rate that can change based on inflation and fuel costs.
Massachusetts: Massachusetts imposes a state gas tax of 24 cents per gallon, used primarily for state transportation projects.
Michigan: Michigan’s state gas tax is 27.2 cents per gallon, with additional local taxes possible in some areas.
Minnesota: Minnesota charges a state gas tax of 28.5 cents per gallon, helping fund state road and bridge projects.
Mississippi: Mississippi has a state gas tax of 18.8 cents per gallon, one of the lower rates in the country.
Missouri: Missouri charges a state gas tax of 19.5 cents per gallon, which is used for transportation funding.
Montana: Montana’s state gas tax is 32 cents per gallon, which is used for road maintenance and improvements.
Nebraska: Nebraska imposes a state gas tax of 28.7 cents per gallon, adjusted quarterly based on state needs.
Nevada: In Nevada, the state gas tax is 23 cents per gallon, with additional local taxes in certain counties.
New Hampshire: New Hampshire charges a state gas tax of 23.8 cents per gallon, used for state transportation projects.
New Jersey: New Jersey’s state gas tax is 41.4 cents per gallon, reflecting recent increases for infrastructure funding.
New Mexico: New Mexico imposes a state gas tax of 17 cents per gallon, with additional local taxes possible.
New York: New York charges a state gas tax of 45.2 cents per gallon, one of the higher rates in the country.
North Carolina: North Carolina’s state gas tax is 38.75 cents per gallon, which is adjusted annually based on population growth and fuel consumption.
North Dakota: North Dakota imposes a state gas tax of 23 cents per gallon, which helps fund state and local transportation projects.
Ohio: Ohio charges a state gas tax of 38.5 cents per gallon, with funds allocated for road maintenance and improvements.
Oklahoma: Oklahoma’s