Cost of Driving in Michigan - True Driving Cost

Key Findings

Driving in Michigan costs an estimated $1,640 per year in fuel, ranking #36 among all states.
The average driver in Michigan travels 9,890 miles per year, 1,437 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 45.6 cents/gal.
An EV driver in Michigan would pay roughly $578/year for electricity, saving about 65% compared to gasoline.

Contents

Quick Facts
Gas Prices
Gas Taxes
Miles Driven
Annual Fuel Cost
Commuting
EV Comparison
Neighboring States
Data Sources

01 Quick Facts

Metric	Value	National Avg
Annual fuel cost (23.7 MPG on-road fleet avg)	$1,640	$1,949
Regular gas price	$3.929/gal	$4.079/gal
Combined gas tax (state + federal)	45.6¢/gal	—
Miles driven per capita	9,890	11,327
Electricity rate (residential)	19.3¢/kWh	16.5¢/kWh
Driving cost rank	#36 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 Michigan averages $3.929 per gallon (EIA Midwest PADD regional average), which is $0.15 below the national average of $4.079. Michigan ranks #32 among states for gas prices (1 = most expensive).

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

03 Gas Taxes

Michigan charges a state gasoline excise tax of 27.2 cents per gallon. Combined with the federal excise tax of 18.4 cents per gallon, drivers in Michigan pay a total of 45.6 cents per gallon in fuel taxes. This ranks #27 among all states (1 = highest tax).

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

At 9,890 miles per year and 23.7 MPG (on-road fleet average), the average driver in Michigan pays roughly $190 in combined gas taxes annually.

Tax Component	Rate
State gasoline tax	27.2¢/gal
Federal gasoline tax	18.4¢/gal
Combined total	45.6¢/gal
Annual tax burden (at 9,890 mi, 23.7 MPG)	$190

FHWA MF-121T (2022); 26 U.S.C. §4081 (federal excise tax rate)

04 Miles Driven

The average driver in Michigan travels 9,890 miles per year, ranking #32 among all states (1 = most miles). This is 1,437 miles below the national average of 11,327.

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

Michigan has a total of 99.7 billion vehicle-miles traveled annually across all road types, with a population of 10,077,331 (74% urban).

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

05 Annual Fuel Cost

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

Vehicle Type	MPG	Annual Fuel Cost
Compact sedan	28.2	$1,378
Midsize SUV	19.6	$1,982
Pickup truck	18.3	$2,123

Calculated: VMT per capita (9,890 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).

Estimate your vehicle's fuel cost using EPA data.

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06 Commuting

The average commute in Michigan takes 24.5 minutes one way. About 75.0% of workers drive alone to work and 12.2% work from home.

U.S. Census Bureau, ACS 1-Year Estimates, Table S0801: Commuting Characteristics by Sex, 2023

Commute Metric	Value
Mean travel time to work	24.5 min
Drove alone to work	75.0%
Public transit	0.9%
Worked from home	12.2%

U.S. Census Bureau, ACS 1-Year Estimates, Table S0801, 2023

07 EV Comparison

The average residential electricity rate in Michigan is 19.3 cents per kWh, which ranks #12 among states (1 = most expensive). At an average EV efficiency of 3.3 miles per kWh, driving on electricity in Michigan costs roughly $0.058 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

Metric	Gasoline	Electric
Cost per mile	$0.166	$0.058
Annual fuel/energy cost (9,890 mi)	$1,640	$578
Annual savings with EV	$1,062 (65%)

EIA Form 861 (2024); EIA Weekly Retail Gasoline Prices (Aug 2026); EPA Fuel Economy Guide

08 Neighboring States

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

State	Gas Price	VMT/Capita	Annual Cost
Michigan	$3.929	9,890	$1,640
Ohio	$4.085	9,834	$1,695
Indiana	$3.929	13,003	$2,156
Wisconsin	$3.929	11,746	$1,947

09 Data Sources

Federal Highway Administration: Table PS-1, Selected Measures for Identifying Peer States, 2024. fhwa.dot.gov
Federal Highway Administration: Highway Statistics 2022, Table MF-121T: State Motor-Fuel Tax Rates. fhwa.dot.gov
U.S. Energy Information Administration: Weekly Retail Gasoline Prices by State/Region, August 2026. eia.gov
U.S. Energy Information Administration: Form EIA-861, Table 5A: Average Monthly Bill — Residential, 2024. eia.gov
U.S. Census Bureau: ACS 1-Year Estimates, Table S0801: Commuting Characteristics by Sex, 2023. data.census.gov
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
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.