Gas Taxes By State

The fluctuating prices of gasoline aren't just dependent on oil market trends. Taxes imposed on fuel are a significant component of the price per gallon, varying dramatically from state to state across the U.S. These fuel taxes are an essential piece of the taxation puzzle, contributing to state revenue and affecting consumers' daily lives directly.

While the federal motor fuel tax rates are fixed at $0.184/gallon for gasoline and $0.244/gallon for diesel, it's the contrasting state-level taxes that compel a closer examination. These taxes, in combination with federal, local, and sales taxes, create a combined gas tax that drivers pay at the pump. Generally, these funds go towards transportation related projects such as highway and road maintenance.

• Twenty-three states have gas taxes higher than the national average of $0.29 per gallon, highlighting how this burden varies across the nation.
• The highest gas tax is found in Pennsylvania at $0.61 per gallon, significantly more than the lowest tax in Alaska, which is only $0.15 per gallon.
• Coastal states such as California ($0.54) and Washington ($0.49) feature prominently amongst those with high gas taxes, while many land-locked states like Texas ($0.20) and Oklahoma ($0.19) hold some of the lowest.
• Interestingly, densely populated states like New York and Connecticut have lower gas taxes of $0.18 and $0.15 per gallon.
• Several states like Montana, Idaho, and Utah, despite their less urbanized landscapes, have gas taxes comfortably above the average.