Cost of Driving in Tennessee - True Driving Cost

Key Findings

Driving in Tennessee costs an estimated $1,893 per year in fuel, ranking #23 among all states.
The average driver in Tennessee travels 11,417 miles per year, near the national average.
Regular gasoline averages $3.929/gal (EIA Midwest PADD regional average), with a combined state and federal gas tax of 44.4 cents/gal.
An EV driver in Tennessee would pay roughly $429/year for electricity, saving about 77% 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)	$1,893	$1,949
Regular gas price	$3.929/gal	$4.079/gal
Combined gas tax (state + federal)	44.4¢/gal	—
Miles driven per capita	11,417	11,327
Electricity rate (residential)	12.4¢/kWh	16.5¢/kWh
Driving cost rank	#23 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 Tennessee averages $3.929 per gallon (EIA Midwest PADD regional average), which is $0.15 below the national average of $4.079. Tennessee ranks #38 among states for gas prices (1 = most expensive).

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

03 Gas Taxes

Tennessee charges a state gasoline excise tax of 26.0 cents per gallon. Combined with the federal excise tax of 18.4 cents per gallon, drivers in Tennessee pay a total of 44.4 cents per gallon in fuel taxes. This ranks #28 among all states (1 = highest tax).

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

At 11,417 miles per year and 23.7 MPG (on-road fleet average), the average driver in Tennessee pays roughly $214 in combined gas taxes annually.

Tax Component	Rate
State gasoline tax	26.0¢/gal
Federal gasoline tax	18.4¢/gal
Combined total	44.4¢/gal
Annual tax burden (at 11,417 mi, 23.7 MPG)	$214

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

04 Miles Driven

The average driver in Tennessee travels 11,417 miles per year, ranking #17 among all states (1 = most miles). This is close to the national average of 11,327.

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

Tennessee has a total of 78.9 billion vehicle-miles traveled annually across all road types, with a population of 6,910,840 (66% urban).

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

05 Annual Fuel Cost

Based on Tennessee'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	$1,591
Midsize SUV	19.6	$2,289
Pickup truck	18.3	$2,451

Calculated: VMT per capita (11,417 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 Tennessee takes 26.3 minutes one way. About 75.8% of workers drive alone to work and 12.8% 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	26.3 min
Drove alone to work	75.8%
Public transit	0.5%
Worked from home	12.8%

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

07 EV Comparison

The average residential electricity rate in Tennessee is 12.4 cents per kWh, which ranks #43 among states (1 = most expensive). At an average EV efficiency of 3.3 miles per kWh, driving on electricity in Tennessee costs roughly $0.038 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	$0.038
Annual fuel/energy cost (11,417 mi)	$1,893	$429
Annual savings with EV	$1,464 (77%)

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

08 Neighboring States

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

State	Gas Price	VMT/Capita	Annual Cost
Tennessee	$3.929	11,417	$1,893
Kentucky	$3.929	10,912	$1,809
Virginia	$3.788	10,255	$1,639
North Carolina	$3.788	12,549	$2,006
Georgia	$3.788	11,409	$1,824

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.