- The federal gasoline excise tax rate is $0.184 per gallon, unchanged since 1993.
- 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 the retail price depending on the state.
- A driver in a high-tax state pays roughly $150 to $260 more per year in fuel taxes than a driver in a low-tax state.
01 The Federal Gas Tax
The federal excise tax on gasoline has been $0.184 per gallon since October 1, 1993. It has not been adjusted for inflation in over 30 years. 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.
26 U.S.C. § 4081: federal excise tax on gasoline; IRS Publication 510, Excise Taxes. FHWA's own summary rate table (MF-121T) lists an effective date of October 1, 1997 for the federal rate, reflecting a later change in how the revenue is allocated to the Highway Trust Fund—not a change to the $0.184 rate itself.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 and are the primary reason gas prices differ between states (along with supply and distribution factors). The FHWA compiles state motor fuel tax rates, which include excise taxes, environmental fees, inspection fees, and other per-gallon charges.
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.
EIA, "Gasoline Explained: Factors Affecting Gasoline Prices – Taxes"At 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 | $0.404 | $204 | +$70 |
| Alaska | $0.264 | $134 | — |
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 Where Gas Tax Revenue Goes
Federal gas tax revenue is deposited into the Highway Trust Fund, which funds road construction, maintenance, and transit projects. The FHWA reports that the Highway Trust Fund has faced chronic shortfalls because the $0.184 rate has not kept pace with inflation or the declining real cost of gasoline relative to driving infrastructure needs.
FHWA, "Highway Trust Fund"; Congressional Budget Office, Highway Trust Fund projectionsState gas tax revenue similarly funds state highway systems, bridges, and in some states, public transit. Some states dedicate gas tax revenue exclusively to roads, while others allow it to fund broader transportation or general fund purposes.
FHWA, "State Motor Fuel Tax Rates" and revenue allocation data06 Data Sources
- FHWA: "State Motor Fuel Tax Rates," Table MF-121T, 2024 reporting period. fhwa.dot.gov
- EIA: "Gasoline Explained: Taxes." eia.gov
- IRS: Excise Tax on Gasoline, 26 U.S.C. § 4081. irs.gov
- FHWA: Highway Trust Fund. fhwa.dot.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