State gas taxes by state range from 9.0 cents per gallon in Alaska to 70.9 cents per gallon in California as of January 2026, with a nationwide average of 33.5 cents per gallon.1U.S. Energy Information Administration (EIA). Many States Slightly Increased Their Taxes and Fees on Gasoline in the Past Year That gap of more than 60 cents means two drivers filling the same 15-gallon tank can pay nearly $10 apart in state taxes alone. What separates a high-tax state from a low-tax one usually isn’t a single big number. It’s how many layers of tax the state stacks on each gallon, and whether those layers adjust automatically over time.
What’s Actually In the Per-Gallon Number
The figure quoted in any state ranking is almost never one flat charge. It’s a stack of separate taxes and fees, each calculated differently.
The largest piece is the state excise tax, a fixed cents-per-gallon charge collected from fuel distributors and passed along at the pump. Because it’s a flat amount, excise revenue stays the same whether gas costs $2.50 or $4.00.
A growing number of states add their general sales tax on top of that excise. California, Connecticut, Illinois, Indiana, and Michigan all apply a percentage-based sales tax to fuel, so the per-gallon burden rises and falls with the retail price. This is a big reason some states show surprisingly high totals even when their excise rate looks moderate.
Smaller fees fill out the total. Environmental surcharges for Underground Storage Tank cleanup funds are common. Some states add inspection fees, county-level fuel taxes, or dedicated environmental program costs. In a handful of states, counties and cities can levy their own per-gallon charges on top of the state rate, adding anywhere from a fraction of a cent to roughly five cents per gallon.
None of the state figures below include federal tax. The federal government adds 18.3 cents per gallon on gasoline plus a 0.1-cent Leaking Underground Storage Tank fee, for a total of 18.4 cents. That rate hasn’t changed since October 1993.2Office of the Law Revision Counsel. 26 US Code 4081 – Imposition of Tax
The Highest Gas Tax States
The most expensive states combine high excise rates with variable-rate mechanisms that ratchet the total upward automatically. Drivers there routinely pay 50 to 70 cents per gallon in state taxes before the federal tax is added.
California leads at 70.9 cents per gallon as of January 2026.1U.S. Energy Information Administration (EIA). Many States Slightly Increased Their Taxes and Fees on Gasoline in the Past Year The total includes a per-gallon excise, a sales tax, and costs passed through from the state’s cap-and-trade and Low Carbon Fuel Standard programs. Those environmental programs are technically separate from the excise, but they show up in the per-gallon total because fuel suppliers factor them into pricing.
Illinois holds the second spot at roughly 66 cents per gallon. The state excise on gasoline is 48.3 cents per gallon for the fiscal year running July 2025 through June 2026, and Illinois law requires that rate to rise every July 1 by the percentage change in the Consumer Price Index.3Illinois Department of Revenue. FY 2025-23, Change in the Motor Fuel Tax Rate, Effective July 1, 2025, Through June 30, 2026 Illinois also applies its 6.25 percent general sales tax to gasoline, pushing the all-in rate well above 60 cents depending on retail price.
Washington lands around 59 cents per gallon, driven by a state excise near 49.4 cents plus additional transportation-related fees. Pennsylvania follows at roughly 58.7 cents per gallon, structured around the Oil Company Franchise Tax. Pennsylvania replaced its traditional liquid fuels tax with the OCFT under Act 89 of 2013, tying portions of the rate to wholesale fuel prices so revenue adjusts with market conditions.4Commonwealth of Pennsylvania Department of Revenue. 2026 Motor Fuel Tax Report REV-1096A
Other states consistently in the top tier include Connecticut (above 52 cents), Maryland (above 47 cents), and North Carolina (above 40 cents). The pattern holds across the group: high-tax states almost always use some form of automatic adjustment tied to inflation, fuel prices, or construction costs, which means their rates climb without any new vote from legislators.
The Lowest Gas Tax States
Alaska charges the least at 9.0 cents per gallon, a simple flat excise with minimal additional fees.1U.S. Energy Information Administration (EIA). Many States Slightly Increased Their Taxes and Fees on Gasoline in the Past Year Oil-producing revenue lets Alaska keep fuel taxes negligible.
Mississippi comes next at 18.4 cents per gallon, a rate that happens to match the federal excise almost exactly. Hawaii sits just above at 18.5 cents per gallon, though Hawaii’s overall pump price is among the nation’s highest because of shipping and refining costs unrelated to taxes.5U.S. Energy Information Administration (EIA). Average State Tax Rates for Retail Gasoline and Diesel Fuel Nearly Flat Since July 2024
Arizona and New Mexico round out the bottom five, both near 19 cents per gallon. Other low-tax states include Oklahoma (19 cents), Louisiana and Texas (both 20 cents), and Colorado (22 cents). These states rely on a flat excise with no sales tax applied to fuel and no automatic inflation adjustment, so their posted rates stay stable year after year.
Stability has a cost. A fixed rate that seemed reasonable in 2005 buys considerably less road repair in 2026. States that haven’t updated their gas tax in decades often face widening gaps between what their roads need and what the tax generates.
Why Some States Keep Climbing the Ranking
Whether a state’s gas tax adjusts automatically is the single biggest structural factor separating the top and bottom of the list. Twenty-six states and Washington, D.C., now use some form of variable-rate gas tax that moves with inflation or fuel prices without requiring a new law each time.6National Conference of State Legislatures. Variable Rate Gas Taxes
The indexing mechanisms vary. Illinois ties its excise directly to the Consumer Price Index, producing automatic annual increases each July.3Illinois Department of Revenue. FY 2025-23, Change in the Motor Fuel Tax Rate, Effective July 1, 2025, Through June 30, 2026 Pennsylvania’s Oil Company Franchise Tax moves with wholesale fuel prices. New Jersey recalculates annually based on actual fuel consumption, most recently increasing its rate by 4.2 cents per gallon effective January 1, 2026, to maintain funding for its Transportation Trust Fund.7New Jersey Department of the Treasury. Treasury Announces Gas Tax Rate Will Increase by 4.2 Cents Effective January 1, 2026 California, Indiana, and Michigan apply their general sales tax to fuel, creating a different kind of variability where the per-gallon tax rises with pump prices and falls when prices drop.
States without indexing face a political problem. Raising a gas tax requires a legislative vote, which makes it easy to defer. Rates stay flat while construction and maintenance costs climb, and when the gap gets large enough, states sometimes pass a big increase all at once. Small annual adjustments from an indexed rate produce less sticker shock than a rare, larger jump.
Diesel Is Taxed Separately
Diesel fuel carries a higher rate than gasoline in nearly every state. As of January 2026, state diesel taxes average 35.5 cents per gallon compared to 33.5 cents for gasoline.1U.S. Energy Information Administration (EIA). Many States Slightly Increased Their Taxes and Fees on Gasoline in the Past Year The gap widens at the top: California’s diesel tax hits 87.3 cents per gallon versus 70.9 cents for gasoline. The federal diesel tax is also higher, at 24.4 cents per gallon compared to 18.4 cents for gasoline.2Office of the Law Revision Counsel. 26 US Code 4081 – Imposition of Tax Any state ranking you look at should specify which fuel it covers, because the two lists don’t match.
Electric Vehicle Fees Are Changing the Math
Electric vehicles pay nothing at the pump, which creates an obvious funding gap as EV adoption grows. At least 41 states now charge a special annual registration fee on electric vehicles to partially offset lost gas tax revenue.8National Conference of State Legislatures. Special Registration Fees for Electric and Hybrid Vehicles The fees typically range from $50 to around $250 for passenger vehicles, and at least 12 states tie the fee to an inflation index so it rises over time. Heavy electric trucks face much steeper surcharges in some states.
Flat annual fees are a blunt tool. A driver who puts 5,000 miles a year on an EV pays the same fee as one who drives 25,000. That inequity has pushed four states into operational mileage-based user fee programs, where drivers pay per mile instead of per gallon. Oregon launched the first in 2015, charging 2.0 cents per mile. Virginia, Utah, and Hawaii have since followed, with Hawaii’s program becoming mandatory for EV owners starting in 2028 and targeting a full transition of all vehicles by 2033.9Utah Legislature. Utah’s Road Usage Charge Program
A coalition of 19 eastern states has run pilot programs studying the concept, and federal legislation authorized $50 million for a national mileage-fee pilot, though no national program has launched. The gas tax isn’t going away soon for the roughly 280 million gasoline and diesel vehicles still on the road. But the long-term direction is clearly toward some form of per-mile charge that works across every powertrain, and future state rankings will likely include those fees alongside the per-gallon numbers.