Ever wonder why the price of gasoline can vary significantly from one state to another? While several factors influence fuel prices, taxes play a substantial role in the final cost we see at the pump. Both federal and state governments levy taxes on gasoline, which are used to fund infrastructure projects, maintenance of roads and bridges, and other transportation-related expenses. But how much exactly are you paying in taxes per gallon of gasoline? Let’s take a closer look at federal and state taxes and break them down by state.
Federal Gasoline Tax
At the federal level, the tax on gasoline has remained unchanged since 1993. The current federal tax is 18.4 cents per gallon for gasoline. This tax is collected and deposited into the Highway Trust Fund, which helps finance highway construction and public transportation systems across the United States. While there have been discussions about increasing this tax to account for inflation and rising infrastructure costs, it has remained the same for over two decades.
State Gasoline Taxes
State gasoline taxes, on the other hand, vary widely. They consist of excise taxes and other fees that states impose to generate revenue for state-specific transportation projects. Some states have a fixed tax rate, while others adjust their rates based on inflation or other economic indicators. Let’s break down the gasoline tax by state as of the most recent data available in 2023:
Alabama: Alabama charges a state gasoline tax of 28 cents per gallon.
Alaska: Alaska has one of the lowest state gasoline taxes at just 8.95 cents per gallon.
Arizona: Arizona drivers pay a state gasoline tax of 18 cents per gallon.
Arkansas: The state gasoline tax in Arkansas is 24.8 cents per gallon.
California: California tops the list with the highest state gasoline tax at 68.15 cents per gallon, reflecting the state’s ambitious infrastructure projects and environmental initiatives.
Colorado: Colorado imposes a state gasoline tax of 22 cents per gallon.
Connecticut: Connecticut’s state gasoline tax is 25 cents per gallon.
Delaware: Delaware charges a state gasoline tax of 23 cents per gallon.
Florida: Florida’s gasoline tax is 43.57 cents per gallon, which includes a variable component that adjusts with inflation.
Georgia: Georgia imposes a state gasoline tax of 28.7 cents per gallon.
Hawaii: Hawaii’s gasoline tax varies by county, with an average state tax of 51.1 cents per gallon.
Idaho: Idaho charges a state gasoline tax of 33 cents per gallon.
Illinois: Illinois has a state gasoline tax of 39.2 cents per gallon, which is indexed to inflation.
Indiana: Indiana’s state gasoline tax is 33 cents per gallon.
Iowa: Iowa charges a state gasoline tax of 30.5 cents per gallon.
Kansas: The state gasoline tax in Kansas is 24 cents per gallon.
Kentucky: Kentucky has a variable gasoline tax, currently set at 26 cents per gallon.
Louisiana: Louisiana’s state gasoline tax is 20 cents per gallon.
Maine: Maine imposes a state gasoline tax of 30 cents per gallon.
Maryland: Maryland’s state gasoline tax is 42.7 cents per gallon, which is adjusted with inflation.
Massachusetts: Massachusetts charges a state gasoline tax of 24 cents per gallon.
Michigan: Michigan’s state gasoline tax is 27.2 cents per gallon.
Minnesota: Minnesota imposes a state gasoline tax of 28.5 cents per gallon.
Mississippi: Mississippi charges a state gasoline tax of 18.4 cents per gallon.
Missouri: Missouri’s state gasoline tax is 19.5 cents per gallon.
Montana: Montana charges a state gasoline tax of 33 cents per gallon.
Nebraska: Nebraska’s state gasoline tax is 29.3 cents per gallon.
Nevada: Nevada imposes a state gasoline tax of 23 cents per gallon.
New Hampshire: New Hampshire charges a state gasoline tax of 23.83 cents per gallon.
New Jersey: New Jersey’s state gasoline tax is 41.4 cents per gallon.
New Mexico: New Mexico imposes a state gasoline tax of 17 cents per gallon.
New York: New York charges a state gasoline tax of 46.19 cents per gallon.
North Carolina: North Carolina’s state gasoline tax is 36.25 cents per gallon.
North Dakota: North Dakota imposes a state gasoline tax of 23 cents per gallon.
Ohio: Ohio charges a state gasoline tax of 38.5 cents per gallon.
Oklahoma: Oklahoma’s state gasoline tax is 20 cents per gallon.
Oregon: Oregon imposes a state gasoline tax of 38 cents per gallon.
Pennsylvania: Pennsylvania has one of the highest state gasoline taxes at 58.7 cents per gallon.
Rhode Island: Rhode Island charges a state gasoline tax of 34 cents per gallon.
South Carolina: South Carolina’s state gasoline tax is 28 cents per gallon.
South Dakota: South Dakota imposes a state gasoline tax of 30 cents per gallon.
Tennessee: Tennessee charges a state gasoline tax of 26 cents per gallon.
Texas: Texas imposes a state gasoline tax of 20 cents per gallon.
Utah: Utah’s state gasoline tax is 31.9 cents per gallon.
Vermont: Vermont charges a state gasoline tax of 31.1 cents per gallon.
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