Gas taxes directly affect how much drivers pay at the pump. These taxes help fund transportation infrastructure like roads and transit systems. In recent times, several states have been charging notably high rates through a combination of excise taxes and other fuel-related fees.
California
California leads the nation with a gas tax of 69.9 cents per gallon, driven by a base excise tax of 59.6 cents, plus additional fees like the underground storage tank fee. Certain counties also apply local sales taxes on gasoline, pushing total costs even higher.
The state adjusts its gas tax annually based on inflation, making it one of the most consistently increasing fuel tax systems in the U.S.
Illinois
Illinois imposes a 48.3-cent excise tax per gallon, alongside environmental impact fees and local motor fuel taxes. In cities like Chicago, additional surcharges apply, including a city tax and a county tax, significantly increasing costs for urban drivers. The state links its gas tax to inflation, causing it to rise each year without the need for new legislation.
Pennsylvania
Pennsylvania’s fuel tax burden is made up of a 57.6-cent Oil Company Franchise Tax and small environmental fees. It has long held a spot among the top three in the country due to its ambitious transportation funding goals. The high rate contributes to maintaining one of the largest networks of roads and bridges in the nation.
Indiana
Indiana uses a mix of a 36-cent excise tax and a variable sales tax on the average wholesale price of fuel. An annual infrastructure improvement fee and adjustments based on fuel prices bring the effective rate to 61.2 cents per gallon. These funds support state road maintenance and INDOT-led construction projects.
Washington
Drivers in Washington pay a 55.4-cent state excise tax, plus fees that support environmental programs and highway safety. Local transit agencies can add further taxes. In addition, the state is exploring climate policies that may include cap-and-invest programs, which could raise fuel prices even more.
Michigan
Michigan applies a 30.93-cent excise tax, then layers on a 6% sales tax that fluctuates with gas prices. Additional environmental and regulatory fees apply at the pump. This hybrid tax structure means the total amount paid varies with market prices, often confusing consumers.
North Carolina
North Carolina has a 40.8-cent base excise tax plus inspection and environmental fees. These charges are recalculated semi-annually using a formula based on population growth and highway construction costs. The tax revenue supports both rural road development and urban transit systems.
Virginia
Virginia’s fuel taxes include a 29.8-cent state excise tax and several regional surcharges, resulting in 55.7 cents per gallon. It is especially so in Northern Virginia and Hampton Roads, which support local transit. The tax is indexed to inflation and also varies by region, creating disparities in gas prices across the state.
Ohio
Ohio’s 38.5-cent excise tax is one of the highest in the Midwest. It is supplemented by fees for fuel storage and hazardous material handling, totaling 54.9 cents per gallon. The funds are used for roadwork, bridge repairs, and local safety initiatives. Rates were last raised significantly in 2019 and have remained steady.
Georgia
Georgia charges a 31.2-cent excise tax, along with state and local sales taxes and a second motor fuel tax, which brings the total to 52.1 cents per gallon. The state temporarily suspended the gas tax in 2022 due to inflation, but it has since reinstated full rates to meet transportation funding needs.
Florida
Florida uses a multi-layered tax system that includes a 19-cent state excise tax, a state sales tax, and up to 12 cents in local option taxes. The final cost varies by county, with urban areas often seeing the highest rates. Revenue supports both highway construction and hurricane evacuation route maintenance.
New Jersey
New Jersey’s gas tax combines a 10.5-cent excise tax with a 41.2-cent Petroleum Products Gross Receipts Tax. It is one of the few states that resets its rate annually based on how much fuel was sold in the previous year. This dynamic structure can cause large swings in gas prices.
New York
New York drivers face a combination of a motor fuel tax, a petroleum business tax, and state and local sales taxes, totaling 49.8 cents per gallon. Additional local surcharges in New York City and surrounding counties drive prices even higher. Gas taxes in the state help fund both the Metropolitan Transportation Authority (MTA) and statewide highway projects.
Oregon
Oregon charges a 49.4-cent state excise tax, supplemented by county-level gas taxes and a transportation improvement fee. Notably, Oregon does not charge a general sales tax, making its fuel tax one of the primary funding mechanisms for road maintenance. Portland and Eugene have among the highest local fuel surcharges.
