March doesn’t just mean the beginning of spring and the peak of college basketball madness. It is also the month when oil refineries begin transitioning from winter gasoline production to the legally required summer fuel blend. This blend produces lower levels of evaporative emissions during the warmer summer weather, but it also costs more to produce. That rise in production cost is, of course, passed on to consumers at the gas pump. However, this more eco-friendly gasoline blend is not the only reason your spring and summer road trips will cost more. Every gallon of fuel you purchase is also taxed, but gasoline tax rates can vary widely from state to state.
Gas taxes are not as simple as they may seem. It is certainly not one flat tax. Instead, gasoline taxes are a combination of excise taxes, operational taxes, fees imposed by wholesalers, and so forth. However, as complex as gas taxes may be, the end result is very straightforward: higher gas prices for American drivers. (And if you want to Marty McFly back in time, here is a look at the price of gasoline through the decades.)
Gas Taxes
Using information provided by The Tax Foundation, a nonpartisan tax policy nonprofit organization, 24/7 Wall St. compiled a list of the total taxes and fees charged per gallon of gasoline in all 50 U.S. states and Washington, D.C.
The average tax per gallon of gas in the U.S. is just over 32.5¢. However, to illustrate just how disparate these taxes can be, the difference between the states with the lowest and highest gas tax rates is 68.95¢ per gallon!
Taxes, of course, are only part of determining the total price for a gallon of gas in any locality. But, while it won’t explain the total cost at the pump, consumers can use this list to see just how much of their gasoline budget goes to pay taxes each time they fill their tanks.
Here is the list of the per-gallon gas taxes in all U.S. states and the District of Columbia. The states are ranked from the lowest to the highest gas taxes.
51. Alaska
Gas Tax: 8.95¢ per gallon
50. Missouri
Gas Tax: 17.47¢ per gallon
49. Mississippi
Gas Tax: 18.4¢ per gallon
48. Hawaii
Gas Tax: 18.5¢ per gallon
46. (tied) Arizona
Gas Tax: 19¢ per gallon
46. (tied) New Mexico
Gas Tax: 19¢ per gallon
45. Texas
Gas Tax: 20¢ per gallon
44. Louisiana
Gas Tax: 20.93¢ per gallon
42. (tied) Delaware
Gas Tax: 23¢ per gallon
42. (tied) North Dakota
Gas Tax: 23¢ per gallon
41. Nevada
Gas Tax: 23.81¢ per gallon
40. New Hampshire
Gas Tax: 23.83¢ per gallon
39. Colorado
Gas Tax: 23.86¢ per gallon
38. Wyoming
Gas Tax: 24¢ per gallon
37. Arkansas
Gas Tax: 24.9¢ per gallon
36. Oklahoma
Gas Tax: 25¢ per gallon
35. Kansas
Gas Tax: 25.03¢ per gallon
34. Massachusetts
Gas Tax: 27.07¢ per gallon
33. Tennessee
Gas Tax: 27.4¢ per gallon
32. Minnesota
Gas Tax: 28.6¢ per gallon
31. South Carolina
Gas Tax: 28.75¢ per gallon
30. Nebraska
Gas Tax: 29.9¢ per gallon
28. (tied) Iowa
Gas Tax: 30¢ per gallon
28. (tied) South Dakota
Gas Tax: 30¢ per gallon
27. Kentucky
Gas Tax: 30.1¢ per gallon
26. Alabama
Gas Tax: 31.2¢ per gallon
25. Maine
Gas Tax: 31.4¢ per gallon
24. Georgia
Gas Tax: 31.95¢ per gallon
23. Wisconsin
Gas Tax: 32.9¢ per gallon
22. Idaho
Gas Tax: 33¢ per gallon
21. Montana
Gas Tax: 33.75¢ per gallon
20. Washington, D.C.
Gas Tax: 33.8¢ per gallon
19. Vermont
Gas Tax: 34.52¢ per gallon
18. Rhode Island
Gas Tax: 35¢ per gallon
17. Utah
Gas Tax: 35.15¢ per gallon
16. Florida
Gas Tax: 35.23¢ per gallon
15. Connecticut
Gas Tax: 35.75¢ per gallon
14. Oregon
Gas Tax: 36¢ per gallon
13. New York
Gas Tax: 36.7¢ per gallon
12. West Virginia
Gas Tax: 37.2¢ per gallon
11. Maryland
Gas Tax: 37.3¢ per gallon
10. Ohio
Gas Tax: 38.5¢ per gallon
9. Virginia
Gas Tax: 39.1¢ per gallon
8. North Carolina
Gas Tax: 40.75¢ per gallon
7. New Jersey
Gas Tax: 41.4¢ per gallon
6. Michigan
Gas Tax: 47.2¢ per gallon
5. Washington State
Gas Tax: 49.4¢ per gallon
4. Indiana
Gas Tax: 54.4¢ per gallon
3. Pennsylvania
Gas Tax: 62.2¢ per gallon
2. Illinois
Gas Tax: 66.5¢ per gallon
1. California
Gas Tax: 77.9¢ per gallon
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.