Gas Tax by State, How Much You Pay Per Gallon in Every State

Every gallon of gas you buy includes a stack of taxes baked into the posted price. The federal excise tax is 18.4 cents per gallon, a rate that hasn't changed since 1993. On top of that, every state adds its own tax, and the variation is enormous: from under 9 cents in Alaska to over 68 cents in California.

Understanding these taxes explains a lot about why gas costs $3.20 in one state and $5.00 in the state next door.

The Federal Gas Tax

The federal excise tax on gasoline is 18.4 cents per gallon, funding the Highway Trust Fund for interstate highway maintenance. Congress has not raised this rate since 1993, meaning inflation has eroded its purchasing power by roughly 50%.

States With the Highest Gas Taxes

• California, 68.1 cents per gallon. Includes excise tax, cap-and-trade fees, a low-carbon fuel standard surcharge, and sales tax. Effectively six separate levies stacked together.
• Pennsylvania, 57.6 cents. The highest flat excise tax in the country.
• Washington, 49.4 cents. Includes a climate commitment act surcharge that took effect in 2023.
• New York, 48.2 cents. Combines excise tax with a petroleum business tax, plus additional metro surcharges in New York City.
• New Jersey, 42.3 cents. Raised significantly in 2016 to fund the Transportation Trust Fund.

States With the Lowest Gas Taxes

• Alaska, 8.95 cents. The lowest in the nation. Alaska funds roads through oil production revenue rather than pump taxes.
• Hawaii, 16.0 cents. Low state tax, but island logistics make gas expensive anyway.
• Arizona, 18.0 cents. Unchanged since 1991.
• Mississippi, 18.8 cents. One of the lowest in the Southeast.
• New Mexico, 18.9 cents. Low taxes plus Permian Basin pipeline access keep prices competitive.

Why Taxes Vary So Much

Some states use a flat per-gallon excise tax. Others apply a percentage-based sales tax to fuel, meaning the tax rises when gas prices rise. California and New York layer multiple mechanisms, excise taxes, environmental fees, sales taxes, and special district surcharges, creating the highest effective rates.

Road funding formulas drive most of it. States with large highway networks relative to population (Pennsylvania, Washington) charge more. States with alternative revenue sources (Alaska's oil royalties, Wyoming's mineral extraction) charge less.

Local Taxes Add Up

Counties and cities can stack their own fuel taxes on top. Cook County, Illinois adds 6 cents per gallon. Chicago adds another 8 cents. A driver filling up in Chicago pays 14 cents more in local taxes alone compared to downstate Illinois.

Border Arbitrage Is Real

Drivers near state lines routinely cross borders to save. New Hampshire has no sales tax on fuel, pulling Massachusetts and Maine drivers across the border. Indiana stations near Chicago draw Illinois drivers escaping Cook County's tax stack. For commuters making the trip weekly, border savings add up to $150-250 a year.

See how current pump prices compare across states on our gas prices by state overview.

Making Every Gallon Count

Taxes are fixed, you cannot negotiate them away. What you can control is how efficiently you burn each gallon. Underinflated tires alone cost the average driver 3% in fuel economy, which at $4.00/gallon and 12,000 miles a year works out to roughly $60 wasted. A tire pressure gauge costs under $8 and takes 30 seconds to use. And a reliable phone mount makes it easier to navigate to the cheapest station in your area rather than pulling into the first one you see.

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