What Gas Prices Would Look Like Without Taxes
- California has the highest gas taxes in the U.S., at 89 cents per gallon in combined state and federal taxes and fees.
- Alaska has the lowest gas tax burden in the country, at 27 cents per gallon — about one-third of California's rate.
- Removing all gas taxes would lower the U.S. average price of regular gas from $3.90 to $3.38 per gallon, a savings of 13%.
- Indiana has the lowest pre-tax gas price in the U.S., at $2.54 per gallon, despite having the fifth-highest gas tax rate in the country.
Methodology
ConsumerAffairs estimated gas prices without taxes by subtracting each state's combined state and federal motor fuel taxes and fees from AAA's average price for regular gasoline as of July 10, 2026. State tax and fee rates — including per-gallon excise taxes, underground storage tank fees and other state assessments — came from the U.S. Energy Information Administration's motor fuels tax data, last updated in January 2026 and revised in March 2026.
These estimates reflect a direct subtraction of published tax rates from average retail prices and do not account for how eliminating those taxes might affect wholesale costs, retailer pricing or consumer demand. Indiana has temporarily suspended its gas taxes through Aug. 6, 2026, and Utah has temporarily reduced its gas tax through the end of 2026. Local taxes, sales taxes and other fuel-related fees are not included in these estimates.
Questions?
For questions about the data or if you'd like to set up an interview, please contact rsowell@consumeraffairs.com.