Key Findings
  • Driving in Iowa costs an estimated $1,757 per year in fuel, ranking #30 among all states.
  • The average driver in Iowa travels 10,600 miles per year, 727 miles below the national average.
  • Regular gasoline averages $3.929/gal (EIA Midwest PADD regional average), with a combined state and federal gas tax of 49.4 cents/gal.
  • An EV driver in Iowa would pay roughly $430/year for electricity, saving about 76% compared to gasoline.

01 Quick Facts

MetricValueNational Avg
Annual fuel cost (23.7 MPG on-road fleet avg)$1,757$1,949
Regular gas price$3.929/gal$4.079/gal
Combined gas tax (state + federal)49.4¢/gal
Miles driven per capita10,60011,327
Electricity rate (residential)13.4¢/kWh16.5¢/kWh
Driving cost rank#30 of 51
FHWA PS-1 (2024), EIA Weekly Retail Gasoline Prices (Aug 2026), FHWA MF-121T (2022), EIA Form 861 (2024)

02 Gas Prices

Regular gasoline in Iowa averages $3.929 per gallon (EIA Midwest PADD regional average), which is $0.15 below the national average of $4.079. Iowa ranks #29 among states for gas prices (1 = most expensive).

U.S. Energy Information Administration, Weekly Retail Gasoline Prices, August 2026

03 Gas Taxes

Iowa charges a state gasoline excise tax of 31.0 cents per gallon. Combined with the federal excise tax of 18.4 cents per gallon, drivers in Iowa pay a total of 49.4 cents per gallon in fuel taxes. This ranks #16 among all states (1 = highest tax).

FHWA, Highway Statistics 2022, Table MF-121T: State Motor-Fuel Tax Rates

At 10,600 miles per year and 23.7 MPG (on-road fleet average), the average driver in Iowa pays roughly $221 in combined gas taxes annually.

Tax ComponentRate
State gasoline tax31.0¢/gal
Federal gasoline tax18.4¢/gal
Combined total49.4¢/gal
Annual tax burden (at 10,600 mi, 23.7 MPG)$221
FHWA MF-121T (2022); 26 U.S.C. §4081 (federal excise tax rate)

04 Miles Driven

The average driver in Iowa travels 10,600 miles per year, ranking #26 among all states (1 = most miles). This is 727 miles below the national average of 11,327.

FHWA, Table PS-1: Selected Measures for Identifying Peer States, 2024

Iowa has a total of 33.8 billion vehicle-miles traveled annually across all road types, with a population of 3,190,369 (63% urban).

FHWA PS-1, 2024; U.S. Census Bureau, 2020 Census

05 Annual Fuel Cost

Based on Iowa's average gas price and miles driven, here is the estimated annual fuel cost by vehicle type:

Vehicle TypeMPGAnnual Fuel Cost
Compact sedan28.2$1,477
Midsize SUV19.6$2,125
Pickup truck18.3$2,276
Calculated: VMT per capita (10,600 mi) ÷ MPG × gas price ($3.929/gal). Class MPG from EPA/DOE Fuel Economy Guide database (unweighted average of comb08 by EPA VClass, model years 2024–2025).

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06 Commuting

The average commute in Iowa takes 20.0 minutes one way. About 76.2% of workers drive alone to work and 10.5% work from home.

U.S. Census Bureau, ACS 1-Year Estimates, Table S0801: Commuting Characteristics by Sex, 2023
Commute MetricValue
Mean travel time to work20.0 min
Drove alone to work76.2%
Public transit0.8%
Worked from home10.5%
U.S. Census Bureau, ACS 1-Year Estimates, Table S0801, 2023

07 EV Comparison

The average residential electricity rate in Iowa is 13.4 cents per kWh, which ranks #36 among states (1 = most expensive). At an average EV efficiency of 3.3 miles per kWh, driving on electricity in Iowa costs roughly $0.041 per mile compared to $0.166 per mile for gasoline.

EIA Form 861, Table 5A: Average Monthly Bill — Residential, 2024; EPA average EV efficiency ~3.3 mi/kWh
MetricGasolineElectric
Cost per mile$0.166$0.041
Annual fuel/energy cost (10,600 mi)$1,757$430
Annual savings with EV$1,327 (76%)
EIA Form 861 (2024); EIA Weekly Retail Gasoline Prices (Aug 2026); EPA Fuel Economy Guide

08 Neighboring States

Here is how Iowa's driving costs compare to neighboring states:

StateGas PriceVMT/CapitaAnnual Cost
Iowa$3.92910,600$1,757
Minnesota$3.93710,371$1,723
Wisconsin$3.92911,746$1,947
Illinois$3.9298,140$1,349
Missouri$3.92913,291$2,203

09 Data Sources

  1. Federal Highway Administration: Table PS-1, Selected Measures for Identifying Peer States, 2024. fhwa.dot.gov
  2. Federal Highway Administration: Highway Statistics 2022, Table MF-121T: State Motor-Fuel Tax Rates. fhwa.dot.gov
  3. U.S. Energy Information Administration: Weekly Retail Gasoline Prices by State/Region, August 2026. eia.gov
  4. U.S. Energy Information Administration: Form EIA-861, Table 5A: Average Monthly Bill — Residential, 2024. eia.gov
  5. U.S. Census Bureau: ACS 1-Year Estimates, Table S0801: Commuting Characteristics by Sex, 2023. data.census.gov
  6. U.S. Environmental Protection Agency / Department of Energy: Fuel Economy Guide database, model years 2024–2025 (vehicle-type MPG); The 2025 Automotive Trends Report, EPA-420-R-26-001 (fleet trends). epa.gov
  7. 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
Disclaimer. This page is for informational purposes only and does not constitute financial, legal, or professional advice. All data is sourced from U.S. government agencies as cited. Gasoline prices change frequently and vary by station, grade, and payment method. Gas tax rates reflect FHWA 2022 data and may have been adjusted since publication. Annual cost estimates use the formula: VMT ÷ MPG × Price per Gallon.