- The federal gasoline excise tax rate is $0.184 per gallon.
- State gasoline taxes range from $0.08 per gallon in Alaska to $0.596 in California (state excise tax rates), narrowly ahead of Pennsylvania at $0.576.
- Combined federal and state taxes account for 8% to 22% of a $3.50 retail price depending on the state (the share falls as the price rises).
- A driver in one of the ten highest-tax states pays $147 to $261 more per year in fuel taxes than a driver in Alaska, the lowest-tax state.
01 The Federal Gas Tax
The federal excise tax on gasoline is $0.184 per gallon. The federal diesel tax is slightly higher at $0.244 per gallon. Both are fixed per-gallon taxes, meaning they do not change with the price of gasoline.
FHWA, Highway Taxes and Fees (federal highway motor fuel tax rates, 18.4 cents gasoline and 24.4 cents diesel per gallon)For a driver purchasing 506 gallons per year (12,000 miles at 23.7 MPG, the actual on-road fleet average per DOE/ORNL), the federal gas tax costs approximately $93 per year. This is the same in every state.
Calculated: 506 gal × $0.184/gal = $93.10/year. Fuel economy: 23.7 MPG on-road fleet average, DOE/ORNL Transportation Energy Data Book, Table 4.3 (2020)02 State Gas Taxes
State-level gasoline taxes vary dramatically, from $0.080 per gallon in Alaska to $0.596 in California. The FHWA compiles state motor fuel tax rates; it includes only taxes levied as a dollar amount per volume of motor fuel, so percentage-based sales taxes and other charges are not in these figures.
FHWA, "State Motor Fuel Tax Rates," Table MF-121T, 2024 reporting period| State (Top 10) | State Tax/Gal | Federal Tax | Combined Total |
|---|---|---|---|
| California | $0.596 | $0.184 | $0.780 |
| Pennsylvania | $0.576 | $0.184 | $0.760 |
| Washington | $0.494 | $0.184 | $0.678 |
| Illinois | $0.470 | $0.184 | $0.654 |
| Maryland | $0.461 | $0.184 | $0.645 |
| New Jersey | $0.423 | $0.184 | $0.607 |
| North Carolina | $0.404 | $0.184 | $0.588 |
| Oregon | $0.400 | $0.184 | $0.584 |
| Ohio | $0.385 | $0.184 | $0.569 |
| Rhode Island | $0.370 | $0.184 | $0.554 |
| State (Bottom 5) | State Tax/Gal | Federal Tax | Combined Total |
|---|---|---|---|
| Alaska | $0.080 | $0.184 | $0.264 |
| Hawaii | $0.160 | $0.184 | $0.344 |
| New Mexico | $0.170 | $0.184 | $0.354 |
| Arizona | $0.180 | $0.184 | $0.364 |
| Mississippi | $0.184 | $0.184 | $0.368 |
Estimate your vehicle's driving cost using official EPA fuel economy data.
Use the Calculator03 Taxes as a Share of Pump Price
Because gas taxes are fixed per-gallon amounts (in most states), their share of the retail price varies inversely with the base price of gasoline. When gas prices are high, taxes represent a smaller percentage; when prices are low, taxes are a larger share.
Arithmetic: a fixed per-gallon tax divided by the pump priceAt a retail price of $3.50 per gallon, combined federal and state taxes represent 8% of the price in Alaska (lowest taxes) versus 22% in California (highest taxes). The national average tax burden is approximately 14% of the retail price.
Calculated: combined tax ÷ retail price. $0.264/$3.50=7.5% (Alaska); $0.780/$3.50=22.3% (California); $0.480/$3.50=13.7% (national average). FHWA tax rates, Table MF-121T, 2024 reporting period; EIA retail price reference.04 Annual Tax Cost by State
For a driver consuming 506 gallons per year (12,000 miles at 23.7 MPG, the actual on-road fleet average), the total annual fuel tax bill varies dramatically by state.
Calculated: 506 gal × combined (federal + state) tax rate per gallon| State | Combined Tax/Gal | Annual Tax (506 gal) | Diff vs Lowest (AK) |
|---|---|---|---|
| California | $0.780 | $395 | +$261 |
| Pennsylvania | $0.760 | $385 | +$251 |
| Washington | $0.678 | $343 | +$209 |
| National Average | $0.480 | $243 | +$109 |
| Missouri | $0.454 | $230 | +$96 |
| Alaska | $0.264 | $134 | n/a |
A driver in California pays approximately $261 more per year in fuel taxes than an equivalent driver in Alaska. For drivers of less efficient vehicles who consume more gallons, the difference is even larger.
05 Data Sources
- FHWA: "State Motor Fuel Tax Rates," Table MF-121T, 2024 reporting period. fhwa.dot.gov
- IRS: Excise Tax on Gasoline, 26 U.S.C. § 4081. irs.gov
- DOE/Oak Ridge National Laboratory: Transportation Energy Data Book, Edition 40, Table 4.3: on-road fuel economy of the light-duty vehicle fleet, 23.7 MPG (2020, the most recent year published). tedb.ornl.gov