Fuel taxes by state 2024

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Gasoline is taxed at federal, state and local levels in the U.S. As of January 2024, federal taxes on gasoline amount to $0.184 per gallon (which includes an excise tax of 18.3 cents per gallon and a storage tank fee of 0.1 cents per gallon). While federal taxes on gas have remained the same since 1997, state tax levels have significantly more variation. State gas taxes in the U.S. range from just under 9 cents per gallon in Alaska to 68 cents per gallon in California.

Key insights

In 2024, the average state gas tax was $.03244 per gallon.

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California has the highest gas tax in the nation, at $0.681 per gallon, while Alaska has the lowest ($0.0895 per gallon).

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The average state gas tax has increased at a slower pace than inflation since 2000.

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Americans consumed over 8.9 million barrels of motor fuel per day in 2023. This represents a more than 5.5% increase over the supply used daily in the year 2000.

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Fuel tax statistics

The first federal fuel tax was enacted in 1932, taxing gas at $0.01 per gallon. Since then, that rate has been raised 10 times (and temporarily lowered twice).

Historical federal fuel taxes over time:

Source: U.S. Department of Transportation, Office of Highway Policy Information

In addition to federal taxes on gas, states and localities impose their own taxes and fees. Roughly half of states have fixed per-gallon tax rates. Twenty-four states have variable-rate taxes that automatically adjust based on certain metrics. For example, four states (Florida, Maryland, North Carolina and Rhode Island) have tied their gas taxes to the Consumer Price Index to rise with inflation. Two states, California and Michigan, have linked gas tax increases to state inflation rates. Other variable-rate states use indexes such as population, gas prices and revenues to automatically adjust their gas tax rates.

In total, 33 states have increased gas taxes and/or fees since 2013.

Which states have the highest gas taxes?

State gas taxes come in various forms, including excise taxes, environmental taxes and inspection fees. The U.S. Energy Information Administration compiles these taxes and fees to enable comparison of the overall gas taxes in each state.

In 2024, no state has higher gas taxes than California, at 68 cents per gallon. Illinois, Pennsylvania, Washington and Indiana are the only other states that tax gas at a rate higher than 50 cents per gallon.

States with the highest gas tax in 2024:

Source: U.S. Energy Information Administration

Where gas tax is lowest

Alaska’s state tax on gasoline is the lowest in the nation, and it is the only state with gas taxes below 10 cents per gallon. Hawaii, Mississippi, New Mexico and Arizona all have state gas taxes below 20 cents per gallon.

States with the lowest gas tax in 2024:

Source: U.S. Energy Information Administration

The average state gas tax was $0.3244 per gallon in 2024. The map below compares rates in all 50 states and Washington, D.C. Note that the rates listed for each state do not include federal fees (which total $0.184 per gallon).

State fuel taxes over the years

Average state gas taxes have increased over the past 20 years, although not quite as fast as inflation. According to the Federal Highway Administration (FHA), the average state gas tax in 2000 was 19 cents per gallon. Adjusted for inflation, that equates to 32 cents per gallon in 2022 dollars. The actual average state gas tax in 2022 was 28 cents per gallon.

While some states raise gas taxes on a regular basis, others do not. Alaska’s state gas tax, for example, has not increased since it was enacted in 1970.

Note that the FHA’s calculation of the average state gas tax rate is also weighted based on the amount of fuel that was actually purchased in each state. Thus, a higher share of fuel purchased in a relatively high-tax state could increase the average state gas tax rate even if no states changed their underlying tax structure.

Average state gas tax over time:

Source: U.S. Department of Transportation, Office of Highway Policy Information

The largest single-year jump in the chart, between 2014 and 2015, occurred for multiple reasons. For one, the FHA began including additional fees in their data beginning in 2015. Several states also increased their gas taxes (or changed the way they were reported) that year, with Iowa’s gas tax increasing from $0.21 to $0.31 per gallon and Georgia’s going from $0.08 to $0.26 per gallon.

Fuel consumption in the U.S. by year

Consumption of gasoline in the U.S. has remained relatively steady since the year 2000. Yearly gas consumption peaked in 2018 at 9.329 million barrels of motor fuel per day and was most recently measured at 8.944 million barrels per day in 2023. Perhaps not surprisingly, the lowest gas consumption in the past quarter century occurred in 2020 during the COVID-19 pandemic.

FAQ

How many gallons of gas are sold each day in the U.S.?

Each barrel of gas holds 42 U.S. gallons. In 2023, average daily gas consumption stood at 8.944 million barrels, or nearly 376 million gallons.

Which state has the highest gas tax?

As of 2024, California has the highest state gas tax in the nation, at roughly 68 cents per gallon.

How much is the federal tax on each gallon of gas?

The U.S. federal tax on motor fuel is 18.4 cents per gallon, including an excise tax of 18.3 cents per gallon and a storage tank fee of 0.1 cents per gallon.


References

  1. “State-by-state fuel taxes.” U.S. Energy Information Administration. Evaluated April 22, 2024.Link Here
  2. “Highway Statistics 2022, Table MF-205.” U.S. Department of Transportation, Office of Highway Policy Information. Evaluated April 22, 2024.Link Here
  3. “Highway Statistics 2020, Table MF-205.” U.S. Department of Transportation, Office of Highway Policy Information. Evaluated April 22, 2024.Link Here
  4. “Alaska’s Motor Fuel Tax: A National and Historical Outlier.” Institute on Taxation and Economic Policy. Evaluated April 22, 2024.Link Here
  5. “Petroleum Products Supplied by Type - Table 3.5.” U.S. Energy Information Administration. Evaluated April 22, 2024.Link Here
  6. “Highway Statistics 2020, Table FE-101A.” U.S. Department of Transportation, Office of Highway Policy Information. Evaluated April 22, 2024.Link Here
  7. “Variable Rate Gas Taxes.” National Conference of State Legislatures. Evaluated April 22, 2024.Link Here
  8. “Recent Legislative Actions Likely to Change Gas Taxes.” National Conference of State Legislatures. Evaluated April 22, 2024.Link Here
  9. “How much tax do we pay on a gallon of gasoline and on a gallon of diesel fuel?” U.S. Energy Information Administration. Evaluated April 22, 2024.Link Here

Figures

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