- State fuel tax rates range from 8.0¢ per gallon in Alaska to 59.6¢ per gallon in California, a sevenfold difference.
- The West Coast (PADD 5) paid $1.53 more per gallon than the Gulf Coast (PADD 3) in the week of August 3, 2026 ($5.13 versus $3.60), the widest gap among the EIA regions shown here.
- At 12,000 miles per year and 25 MPG, the gap between the cheapest and most expensive states can exceed $900 in annual fuel cost.
01 Introduction
Gasoline prices in the United States are not uniform. A driver in California can pay over $5.49 per gallon while a driver in Texas pays under $3.54 for the same grade of regular unleaded fuel. That difference of nearly $1.96 per gallon adds up to hundreds of dollars per year for the average driver.
U.S. Energy Information Administration, Weekly Retail Gasoline Prices by State, August 2026The price you pay at the pump is made up of four components: the cost of crude oil, refining costs and margins, distribution and marketing, and taxes. For a broader look at how these components combine into the real cost of driving in America, see our overview article. While crude oil prices are set globally, the other three components vary significantly by state and region.
U.S. Energy Information Administration, Gasoline Explained: Factors Affecting Gasoline PricesThis article compares state fuel tax rates and regional retail gasoline prices, using data from the Federal Highway Administration (FHWA) and the Energy Information Administration (EIA).
Data sourcing methodology. All agencies publish under 17 U.S.C. § 105 (U.S. public domain)02 Why Gas Prices Vary by State
Taxes, distance from refineries, and fuel formulation rules are commonly cited reasons for state-to-state gasoline price differences. The data on this page documents the tax rates and the regional price gaps; it does not measure how much each factor contributes.
U.S. Energy Information Administration, Gasoline Explained: Factors Affecting Gasoline PricesState and local fuel taxes. Every gallon of gasoline sold in the United States includes a federal excise tax of 18.4 cents per gallon. On top of that, each state levies its own fuel tax, ranging from 8.0 cents in Alaska to 59.6 cents in California. The FHWA rates shown here cover per-gallon taxes only; other charges, such as percentage-based sales taxes, are not included.
FHWA Highway Statistics, Table MF-121T, 2024 reporting period: State Tax Rates on Motor Fuel; 26 U.S.C. § 4081 (federal excise tax)Proximity to refineries. The Gulf Coast (PADD 3) has had the lowest annual average regional price in each year from 2020 through 2025 and has averaged about $0.18 per gallon below the national average over the full historical EIA price series, while the West Coast has averaged about $0.37 per gallon above it over the same period.
Calculated from EIA weekly regional retail gasoline price series (Gulf Coast PADD 3, West Coast PADD 5, U.S. average), full historical series through August 2026Fuel formulation requirements. The EPA requires certain metropolitan areas to use reformulated gasoline (RFG) to reduce air pollution. California maintains its own fuel standard (CARB gasoline) that is even stricter. Diesel fuel faces a separate set of pricing dynamics, including a persistent premium over gasoline that has widened since 2005.
U.S. Environmental Protection Agency, Reformulated Gasoline Program; California Air Resources Board Gasoline Regulations03 State Fuel Tax Rates
The federal government collects a flat 18.4 cents per gallon on gasoline nationwide. State fuel taxes, however, vary dramatically. The FHWA publishes comprehensive fuel tax data for all 50 states and the District of Columbia in its annual Highway Statistics report.
FHWA Highway Statistics, Table MF-121T, 2024 reporting period: State Tax Rates on Motor FuelCalifornia leads the nation at 59.6 cents per gallon, followed by Pennsylvania at 57.6 cents and Washington at 49.4 cents. At the other end, Alaska charges just 8.0 cents per gallon, followed by Hawaii at 16.0 cents and New Mexico at 17.0 cents. The difference between the highest-tax and lowest-tax states is 51.6 cents per gallon.
FHWA Highway Statistics, Table MF-121T, 2024 reporting period| State | State Tax (¢/gal) | Combined with Federal (¢/gal) |
|---|---|---|
| California | 59.6 | 78.0 |
| Pennsylvania | 57.6 | 76.0 |
| Washington | 49.4 | 67.8 |
| Illinois | 47.0 | 65.4 |
| Maryland | 46.1 | 64.5 |
| New Jersey | 42.3 | 60.7 |
| Alaska | 8.0 | 26.4 |
| Hawaii | 16.0 | 34.4 |
| New Mexico | 17.0 | 35.4 |
| Arizona | 18.0 | 36.4 |
The tax rates shown here are per-gallon taxes only. Some states also apply percentage-based sales taxes or other fees that are not included in these figures.
FHWA Highway Statistics, Table MF-121T, 2024 reporting period, footnotes on additional state fees and surcharges04 Regional Price Patterns
The EIA divides the United States into five Petroleum Administration for Defense Districts (PADDs), each with distinct refining capacity, pipeline infrastructure, and supply dynamics. The EIA publishes weekly retail gasoline prices for these regions, and West Coast prices have been above Gulf Coast prices in every year from 2020 through 2025 (by $0.97 to $1.44 per gallon on an annual average).
U.S. Energy Information Administration, Petroleum & Other Liquids, Regular Gasoline Prices by PADD DistrictThe Gulf Coast (PADD 3) had the lowest regional price in the week of August 3, 2026, and the lowest annual average in each year from 2020 through 2025. Texas, the largest state in this district, had a retail price of $3.53 per gallon in August 2026.
U.S. Energy Information Administration, Weekly Retail Gasoline Prices, Selected States, August 2026The West Coast (PADD 5) had the highest regional price in the week of August 3, 2026, and the highest annual average in each year from 2020 through 2025. In August 2026, California's average was $5.50 per gallon, nearly $1.96 more than Texas.
U.S. Energy Information Administration, Weekly Retail Gasoline Prices, California and Texas, August 2026Estimate your vehicle's driving cost using official EPA fuel economy data.
Use the Calculator05 The Annual Cost Impact
State-level price differences translate directly into annual fuel cost differences. The impact is even more dramatic when you factor in commuting costs, since most Americans drive to work daily. A driver who uses 480 gallons per year (12,000 miles at 25 MPG) would pay $1,695 in Texas at $3.532 per gallon but $2,638 in California at $5.495 per gallon. That is a difference of $943 per year for the same amount of driving.
Calculated: 12,000 ÷ 25 = 480 gallons; 480 × $3.532 = $1,695; 480 × $5.495 = $2,638; difference = $943. Prices from EIA, August 2026Vehicle fuel economy amplifies or reduces this geographic penalty. A driver with a 35 MPG vehicle uses about 343 gallons per year, reducing the California-to-Texas gap to about $673. A driver with a 20 MPG truck uses 600 gallons, and the gap grows to $1,178.
Calculated from standard fuel cost formula (12,000 ÷ MPG × Price). EIA state prices, August 202606 What Stays the Same Over Time
Gasoline prices fluctuate with crude oil markets. The regional ordering shown below, however, did not change from 2020 through 2025.
U.S. Energy Information Administration, historical PADD district pricing data, 2000 to 2025; FHWA Highway Statistics, historical tax rate tablesThe national average retail gasoline price was $2.17 per gallon in 2020, rose to $3.95 in 2022 (the highest annual average in the EIA series, which begins in 1992), and settled at $3.10 in 2025. Throughout that entire range, the West Coast remained the most expensive region and the Gulf Coast remained the cheapest. The spread between them stayed between roughly $0.97 and $1.44 per gallon in every year from 2020 through 2025. See the full year-by-year national average back to 1950 for the longer-term picture.
U.S. Energy Information Administration, Petroleum & Other Liquids, U.S. Regular All Formulations Retail Gasoline Prices, Annual, 2020 to 2025Estimate your vehicle's driving cost using official EPA fuel economy data.
Use the Calculator07 Data Sources
- Federal Highway Administration: Highway Statistics, Table MF-121T: State Tax Rates on Motor Fuel, 2024 reporting period. fhwa.dot.gov
- U.S. Energy Information Administration: Petroleum & Other Liquids, Weekly Retail Gasoline and On-Highway Diesel Prices by PADD District and Selected States. eia.gov
- U.S. Energy Information Administration: Gasoline Explained: Factors Affecting Gasoline Prices. eia.gov
- U.S. Environmental Protection Agency: Reformulated Gasoline Program. epa.gov