Volume-based excise taxes range from 8 cents to 61 per gallon — a range of more than sevenfold. Meanwhile, the average state excise tax comes out to 29 cents a gallon.
How much do you pay in gas taxes?
Gas prices are nearing $6.00 a gallon in some parts of the US, while other regions pay over two dollars less at the pump. How much are taxes adding to the equation?
Published May 4, 2026by the USAFacts team
US gas prices increased by $1.11 per gallon — about 37% — from March to April while the global economy responded the limited crude oil supply passing through the Strait of Hormuz. The average per-gallon price rose from $3.02 on March 2 to $4.12 on April 27, according to data from the Energy Information Administration (EIA).
But prices vary broadly by state. Californians, who are paying $5.79 at the average station as of the latest data, may not feel much sympathy for their Texan counterparts, who pay $3.66 (even after an increase of over a dollar locally, as well). Gas prices in California haven’t been that low in over five years.
So why the regional differences? The EIA says it’s everything from a region’s proximity to the supply to competition among local gas stations. Some factors — like supply disruptions — can be out of government’s (and even industry’s) control. But other factors are more directly in the hands of regional governments. Perhaps most directly: taxes.
How do gas taxes work?
A little over half of what you pay per gallon of gas covers the cost of the crude oil. Another 20% is refinery costs, and 11% is marketing and distribution. The remaining 18% is tax.
When you fill up at the pump, your purchase is subject to multiple layers of taxation. The federal government imposes a flat tax on all gas purchases. Congress raised this to 18.4 cents per gallon in 1993 and it hasn’t changed since.
Plus, every state government and Washington, DC, levy their own per-gallon gasoline excise taxes. On top of any volume-based taxes, most states have general sales taxes that add some percentage of all purchases, including gas. Finally, state legislation sometimes includes additional fees for storage, inspection, environmental cleanup, or other considerations.
California taxes gas at the highest rate of any state: $0.71 per gallon.
Average state gasoline taxes per gallon, total and by type (January 2026)
Diesel is taxed similarly — with a flat federal tax (24.4 cents/gallon), state excise and sales taxes, and any applicable additional fees. The difference is that the taxes tend to be heavier: In January 2026, diesel was being taxed at 60 cents per gallon overall, compared to 52 cents for regular.
Let’s take a closer look at how these different taxes play out in different states.
Which states have the highest gas tax?
Four states charge more than half a dollar per gallon in excise: California (61 cents/gallon), Pennsylvania (58), Washington (55), and Michigan (52).
On the other end of the cost spectrum, Alaska and New York charge just 8 cents per gallon, the lowest in the nation, followed by New Jersey (11), Vermont (12), and Hawaii (16).
In some of these states, other types of taxes and fees on gas purchases end up bringing the overall cost closer to the national average.
The average state adds another 5 cents on those additional taxes and fees, which range from general sales tax to state-specific revenue programs. Some states, such as Delaware, don’t have sales tax or additional fees. Others, including New York, New Jersey, and Vermont, generate most of their gas tax revenue through these sources.
All told, in the average US state, drivers pay 33 cents per gallon in state gas taxes when filling up.
Sorting the states with the additional fees included helps illustrate just how much some states rely on per-gallon excise taxes, while others use other forms of tax. New Jersey rises from third-lowest on the list to seventh-highest. Illinois passes Pennsylvania, Washington, and Michigan for second-highest.
One thing remains the same: California at the top, and Alaska at the bottom.
Including the federal gas tax, drivers in the average state pay 52 cents in taxes per gallon as of January 2026: the 18.4 cents of federal tax plus an additional 33.3 cents of state-level taxes and fees.
In California, they pay 89 cents per gallon — the national-high 61 cent state excise tax, 10 cents of sales tax and additional fees, and the 18 cent federal tax. In Alaska, it’s 27 cents.
It’s worth noting that, aside from taxes, California is a perfect storm when it comes to gas prices. The state requires a particular blend of gasoline intended to improve air quality, but that gas uses more expensive components and extra steps in the refining process, which increases prices at the pump. It also has environmental compliance requirements that the California Energy Commission estimated in March 2025 could add as much as 54 cents per gallon. Plus, it’s far from Gulf Coast refineries, making it vulnerable to supply issues.
How are gas taxes changing?
The average state’s total gas tax has risen from 27 cents per gallon in 2015 to 33 in 2026, due in part to a handful of states' rising taxes. In January 2015, 47 states and Washington, DC, taxed drivers an average between 15 cents and 40 cents per gallon (including excise taxes and other taxes). In January 2026, 39 still did, while 12 states had averages higher than 40 cents.
Taxes rose the most in New Jersey (+35 cents/gallon), Illinois (+27), California (+26), Virginia (+25), and Washington (+21). During that time, California, Illinois, and Washington all passed Pennsylvania on the list of states with the highest gas taxes.
New Jersey and Virginia, which had been among the states with the lowest gas taxes in 2015, are now among the top 10.
Other states left their tax legislation as was: Eleven states had no change in their average rates after that time. Another three — Hawaii, New York, and Kentucky — had lower per-gallon averages in 2026.
Taxes are a major revenue tool for governments at all levels, and, given our country’s reliance on gasoline for fuel, it is a common target for taxation. As state legislatures take varied approaches to taxing residents’ tanks, they can take scrutiny from the public and, ultimately, voters.
Where does this data come from?
Where does this data come from?
Gas prices and taxes are tracked by the Energy Information Administration (EIA). The agency releases gas prices for the country, regions, states, and cities weekly. The EIA releases a report on fuel taxes biannually, in January and June. This was last released with January 2026 data and updated in March.
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