With gasoline prices remaining at historically high levels, greater focus is being placed on the state-defined gas taxes. States, like the federal government, can levy taxes on motor fuel like gasoline and diesel.
California currently has the highest rate of state gas tax and it could be rising even more in the coming months. There had been hope that the current economic conditions would encourage Gov. Gavin Newsom to abandon the planned yearly gas excise tax hike on 1 July, but that will not be possible.
“It is clear now that the Legislature will not act in time to provide that immediate, limited relief,” said Alex Stack, Newsom’s spokesperson.
After voting against my bill to suspend the gas tax four times, the Supermajority is now making the tax go up on July 1. Even Newsom is against that.
— Kevin Kiley (@KevinKileyCA) April 26, 2022
Which states have the highest gas tax rates?
The rate of tax levied on gasoline and diesel can vary hugely between states, meaning that the recent fuel price rises have hurt some more than others.
If you do some interstate driving it might be worth checking out the relative rates of tax. Drivers in Arizona will be paying just 19¢ of tax per gallon of gasoline, while residents in the neighbouring state of California will be paying nearly 50¢ more.
Kiplinger estimates that, for someone who drives around 12,000 miles a year, the difference could represent an annual saving of about $235. Here’s the states with the highest current rates of gasoline tax:
10. Florida – 43.55¢ per gallon of gasoline, 36.37¢ per gallon of diesel
9. Michigan – 45.17¢ per gallon of gasoline, 47.16¢ per gallon of diesel
8. New York – 48.22¢ per gallon of gasoline, 46.98¢ per gallon of diesel
7. Washington – 49.4¢ per gallon of gasoline, 49.4¢ per gallon of diesel
6. Indiana – 49.79¢ per gallon of gasoline, 54¢ per gallon of diesel
5. Nevada – 50.48¢ per gallon of gasoline, 28.56¢ per gallon of diesel
4. Hawaii – 51.69¢ per gallon of gasoline, 52.41¢ per gallon of diesel
3. Pennsylvania – 58.7¢ per gallon of gasoline, 75.2¢ per gallon of diesel
2. Illinois – 59.6¢ per gallon of gasoline, 67.02¢ per gallon of diesel
1. California – 68.15¢ per gallon of gasoline, 99.91¢ per gallon of diesel
Which states have the lowest gas tax rates?
In response to the ongoing situation in Ukraine and the continued high cost of gasoline, many states are considering offering some gas tax cuts to help motorists at the pump. In both red and blue states, short-term solutions are being considered to help bring down the cost.
However the states with the lowest gasoline tax rates are still overwhelmingly Republican-led. Here’s the states with the lowest current rates of gasoline tax:
10. Delaware – 23¢ per gallon of gasoline, 22¢ per gallon of diesel
9. Colorado – 22¢ per gallon of gasoline, 20.5¢ per gallon of diesel
8. Louisiana – 20.01¢ per gallon of gasoline, 20.01¢ per gallon of diesel
=6. Oklahoma – 20¢ per gallon of gasoline, 20¢ per gallon of diesel
=6. Texas – 20¢ per gallon of gasoline, 20¢ per gallon of diesel
5. Missouri – 19.92¢ per gallon of gasoline, 19.92¢ per gallon of diesel
4. Arizona – 19¢ per gallon of gasoline, 27¢ per gallon of diesel (19¢ per gallon for light vehicles)
3. New Mexico – 18.88¢ per gallon of gasoline, 22.88¢ per gallon of diesel
2. Mississippi – 18.79¢ per gallon of gasoline, 18.4¢ per gallon of diesel
1. Alaska – 15.13¢ per gallon of gasoline, 14.98¢ per gallon of diesel