Note: The average income tax is calculated by taking the statistical average of all the state's marginal income tax brackets. Gasoline purchased with cash is not tax exempt. You need at least a Single Account to use this feature. Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and global levels. New, Figures and insights about the advertising and media world, Industry Outlook Gasoline taxes keep rising, and more and more Americans are feeling gut-punched at the gas station. Profit from additional features by authenticating your Admin account. Oregon lawmakers recently considered a climate change bill that would have raised fuel prices by another 22 cents. You need a Single Account for unlimited access. The gas-tax increase was required under a 2016 law that was passed as part of a broader renewal of the state Transportation Trust Fund, which uses dedicated revenue from the gas tax to … In general, the severance tax is calculated based on either the value of the product or volume of production. Ohio now enjoys the distinction of being the 30th state to raise or reform its gas tax this decade, and the third state to do so this year, under a bill signed into law by Gov. The increases are part of a five-year-old law that syncs up the state fuel tax with inflation. Dollars per Gallon). The state gas tax is currently 36 cents and is rising in stages to 40 cents by 2024. People in North Carolina pay the highest in state and federal gas taxes, at 57.55 cents per gallon. Available to download in PNG, PDF, XLS format, Access to this and all other statistics on 80,000 topics from, U.S. transportation sector gasoline & distillate fuel consumption 1992-2019, U.S. highway gasoline consumption by motor vehicles 1992-2019, U.S. gasoline motor fuel taxes by region - January 2020. Senate President Pro Tem Dave Schatz, R-Sullivan, has filed measures to both raise the state's gas tax to pay for infrastructure improvements (Senate Bill 262) and to … API collects motor fuel tax information for all 50 states and compiles a report and chart detailing changes and calculating a nationwide average. Motorists in New Jersey began reaching deeper into their wallets on Thursday to fill their gas tanks as the state’s fuel tax … and over 1 Mio. As of August 2018, drivers pay an average of 28.62 cents in state taxes on every gallon of gasoline, plus the federal fuel tax — adding up to an average 47.02 cents in total taxes on every gallon. Click here to see the states with the highest and lowest gas taxes. Every state imposes its own tax on gas. Several other states consider additional components when determining the state gas tax, such as: In addition to a tax on the price of gasoline, Nebraska’s legislature also has the power to recalculate the state motor fuel tax in order to sufficiently make payments on the state’s highway improvement bonds. Facebook: number of monthly active users worldwide 2008-2020, Smartphone market share worldwide by vendor 2009-2020, Number of apps available in leading app stores 2020, Profit from additional features with an Employee Account. Gasoline Tax Exemption A gasoline tax exemption is extended to missions and personnel by means of tax-exempt oil company credit card accounts. Here is a summary report on gasoline and diesel taxes. Please authenticate by going to "My account" → "Administration". Please create an employee account to be able to mark statistics as favorites. January 31, 2020. While state tax policy can be a contentious topic, there has been a remarkable level of agreement on the gasoline tax. The increases were included in a hefty $5.3 billion package of taxes and fees passed in 2017 to fund road, bridge and transit projects. The average diesel tax by state is 30.46 cents per gallon. But there are plenty of calls in the state to raise the gas tax, which hasn't been lifted since the 1980s.) Then you will be able to mark statistics as favourites and use personal statistics alerts. States levy gas taxes in a variety of ways, including per-gallon excise taxes collected at the pump, excise taxes imposed on wholesalers which are passed along to consumers in the form of higher prices, and sales taxes that apply to the purchase of gasoline. Register in seconds and access exclusive features. Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook The American Petroleum Institute’s April 2016 review (done quarterly) found 23 states with combined gas taxes and fees higher than the national average of 48.04 cents per gallon. Kentucky League of Cities President and London Mayor Tony Rudder also pushed for the increase. 10 States with the Highest Gas Taxes COVID-19 has made us appreciate driving our cars more, but filling up the tank will cost you more in these state. State-by-State Guide to Taxes on Middle-Class Families State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. In addition to state taxes of at least 4% per gallon of gas, the federal government levies a tax of 18.4 cents on every gallon of gas sold in the US. For questions, please contact Tenecia Douglas at (334) 242-7527 or at Tenecia.Douglas@treasury.alabama.gov. Michigan. A paid subscription is required for full access. These rates vary widely from state to state and can be seen in the map below. Learn which states have the highest tax rates, no taxes, and flat taxes; and see a complete list of tax rates for every state in the union. Other Texas Natural Gas Tax Forms . Directly accessible data for 170 industries from 50 countries The SCO reviews and processes refund claims from claimants who purchase gasoline in the State of California and for off-highway, paratransit, export, or blended fuel (E-85) purposes, as specified in Revenue and Taxation Code section 8101. The tax hike was part of a hefty $5.3 billion package of taxes and fees meant to provide funding for road, bridge and transit projects in the Beaver State. Please contact us to get started with full access to dossiers, forecasts, studies and international data. On average, as of April 2012, state and local taxes add 31.1 cents to gasoline and 30.2 cents to diesel for a total US average fuel tax of 49.5 cents (cpg) per gallon for gas and 54.6 cents per gallon (cpg) for diesel. The state with the highest tax rate on gasoline is Pennsylvania at $0.586 / gallon followed closely by California at $0.533 / gallon. In states where taxes vary depending upon the price of the motor fuel (for example, where the tax rate is set as a percentage of the sales price rather than a cents per gallon method), the state average listed on the chart is a snapshot based upon the price of fuel (as reported by AAA) on the date the chart is updated. GasBuddy lets you search for Gas Prices by city, state, zip code, with listings for all cities in the USA and Canada. In addition to state taxes of at least 4% per gallon of gas, the federal government levies a tax of 18.4 cents on every gallon of gas sold in the US. This tax pays for infrastructure projects and mass transportation costs, and it includes a 0.1 cent per gallon fee that goes to the Leaking Underground Storage Tank trust fund. While few taxpayers are cheerleading gas taxes, they do embody the “benefit principle” of taxation relatively well. The Texas oil and natural gas industry contributed to state and local tax coffers in the fiscal year 2020, Todd Staples, president, Texas Oil and Gas Association stated. In general, drivers benefit from the government road services that their gas tax dollars pay for, like road construction, maintenance, and repair. If you want to compare all of the state tax rates on one page, visit the list of state income taxes. Several states tax the volume of oil or gas produced, most often per barrel of oil or per 1,000 cubic feet of natural gas. By Robert L. Bradley, Jr. May 17, 2019. This report is updated quarterly. Suite 950 This feature is limited to our corporate solutions. Oregon's state gas tax has been holding steady since the start of 2018, when it went up by 4 cents a gallon. The average gas tax by state is 29.15 cents per gallon. Update, Insights into the world's most important technology markets, Advertising & Media Outlook This public finance concept holds that the taxes a person pays should relate to the government services that person receives. You only have access to basic statistics. The gas tax was first imposed by the federal government in 1932 at a mere 1 cent per gallon. The tax collected at the gasoline pump by the federal government is 18.4 cents per gallon. For over 80 years, our goal has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity. facts. Maryland moved into the top 15 on this list in July 2018, when the state's gas tax was hiked by 1.5 cents a gallon. You can only download this statistic as a Premium user. You’ll find the lowest gas tax in Alaska at 14.66 cents per gallon, followed by Missouri (17.42 cpg) and Mississippi (18.4 cpg). However, indexing gas taxes for inflation is a reasonable tool to create a stable source of revenue to fund infrastructure maintenance and repair needs for years to come, which helps states avoid leaning on general fund revenues and other less suitable tax sources to maintain roads and bridges. The Tax Foundation is the nation’s leading independent tax policy nonprofit. However, residents can write off the extra gas taxes paid at the pump from their income taxes. The United States federal excise tax on gasoline is 18.4 cents per gallon (cpg) and 24.4 cents per gallon (cpg) for diesel fuel. Alabama State Treasurer's Gas Tax Distribution Reports ***Statements will be available the 10th day of each month*** Please access Fiscal Year End Reports at this site. The United States federal excise tax on gasoline is 18.4 cents per gallon (4.86 ¢/L) and 24.4 cents per gallon (6.45 ¢/L) for diesel fuel. Washington, DC 20005, Tax Expenditures, Credits, and Deductions, Small Business, Pass-throughs, and Non-profits, Research & Analysis of Digital Tax Policies, Sources of Government Revenue in the OECD, Opportunities for Pro-Growth Tax Reform in Austria, Tax Proposals, Comparisons, and the Economy. California pumps out the highest tax rate of 61.2 cents per gallon, followed by Pennsylvania Every state imposes its own tax on gas. 12. 23 states have gas taxes higher than that average, and 27 states have gas taxes lower than that average. The Federal government collects 18.4 cents for every gallon of unleaded gasoline and 24.4 cents for diesel fuels . More than half of U.S. states have raised their gas taxes since 2013. A handful of states charge more than double the national tax level. The first US state tax on fuel was introduced on February 25, 1919 in Oregon. California pumps out the highest tax rate of 61.2 cents per gallon, followed by Pennsylvania (58.7 cpg), Illinois (54.98 cpg), and Washington (49.4 cpg). The driving season is upon us. > State taxes as pct. But many states and the federal government don’t index those taxes for inflation, so the nominal value of gas tax revenue tends not to keep pace with infrastructure funding needs across the country. The state has no direct personal income tax and does not collect a sales tax at the state level, although it allows local governments to collect their own sales taxes. As a Premium user you get access to the detailed source references and background information about this statistic. Learn more about how Statista can support your business. California pumps out the highest tax rate of 62.47 cents per gallon, followed by Pennsylvania (58.7 cpg), Illinois (52.01 cpg), and Washington (49.4 cpg). In, 24/7 Wall St.. "Leading states based on highest effective gas tax and price in the United States as of January 2020 (in U.S. dollars per gallon)." Texas Propane Tax . Gasoline taxes at 60.93 cents per gallon on an average seem fairly reasonable, considering the fact that Florida does not have a state income tax. Gas Tax in United States Did you know that the Federal government, State and Local government collect gas tax for every gallon fuel purchased. The United States federal excise tax on gasoline is 18.4 cents per gallon (cpg) and 24.4 cents per gallon (cpg) for diesel fuel. Gasoline Diesel ; State Excise Tax: 25.68 ¢ per gallon: 26.24 ¢ per gallon: Other State Taxes/Fees: 11.15 ¢ per gallon: 11.61 ¢ per gallon: Total State Taxes/Fees* 36.83 ¢ per gallon: 37.85 ¢ per gallon: Total State and Federal Taxes: 55.23 ¢ per gallon : 62.25 ¢ per gallon Check out our interactive map to find out. Quick Analysis with our professional Research Service: Content Marketing & Information Design for your projects: Industry-specific and extensively researched technical data (partially from exclusive partnerships). We work hard to make our analysis as useful as possible. State-level taxes are climbing this year, and Congress plans to renew a push to hike the federal tax in 2020, which has remained at 18.4 cents per gallon since 1993. While simple to implement, these taxes do not reflect price fluctuations. You’ll find the lowest gas tax in Alaska at 14.66 cents per gallon, followed by Missouri (17.42 cpg) and Mississippi (18.4 cpg). The American Petroleum Institute accounts for these different approaches when it calculates the average tax rate on a gallon of gasoline in each state. 1. Methodology: In order to determine the best and worst states for taxes, GOBankingRates looked at eight factors across all 50 states, in addition to the median household income, as sourced from the U.S. Census Bureau’s 2017 American Community Survey. State Regular Mid-Grade Premium Diesel ; Alaska : $2.586 : $2.699 : $2.858 Pennsylvania had one of the highest taxes on gas in the United States at 59 U.S. cents per gallon. Last session, a bill that would increase the gas tax 9 cents, as well as increase registration fees and impose fees on electric vehicles, did not pass. Background. State estimates of gas and diesel tax revenue have declined by almost 7% this year and are projected to drop by 7.6% in the fiscal year starting July 1. State gas taxes. The ideal entry-level account for individual users. Updated in real-time, with national average price for gasoline, current trends, and mapping tools. 1325 G St NW The diagram above shows how the prices of an average gallon of gasoline and diesel fuel are broken down among various components, including the cost of the crude oil, refining, distribution / marketing, and taxes. In Texas, Propane is subject to a state excise tax of $0.15 per gallon paid by out-of-state plated vehicles, IFTA licensed vehicles, and motor vehicles operated under a Texas licensed Motor Vehicle Dealer's liquefied gas tax decal to a licensed liquefied gas dealer. 24/7 Wall St.. (January 31, 2020). (58.7 cpg), Illinois (54.98 cpg), and Washington (49.4 cpg). Help us continue our work by making a tax-deductible gift today. Neither formal diplomatic accreditation nor entitlement to general sales tax exemption privileges entitles […] The tax went up another 1.4 cents on July 1, 2019. Meanwhile the highest tax rate on aviation fuel is Indiana at $0.51 / gallon. Without a state income tax, there had to be a way to procure funds to make all the state programs work but gas tax was pretty much the only viable option. The federal gasoline excise tax is 18.4 cents per gallon as of 2020. Gasoline States faced an immediate crisis in fiscal year 2020 as the pandemic took a toll on revenues. A state or local jurisdiction is funded in a variety of ways, whether by property tax, income tax, or in this case, a severance tax on oil and natural gas production. You’ll find the lowest gas tax in Alaska at 13.77 cents per gallon, followed by Missouri (17.42 cpg) and Mississippi (18.79 cpg). State Gasoline Tax Reports. Our work depends on support from members of the public like you. When you logged in you chose the "Store Login" option. Warning. State gas taxes. This means that the gas tax is relatively well distributed throughout the US—it skewed only slightly toward states with lower taxes. Guidelines Relating to Gas Tax Expenditures For Cities and Counties Betty T. Yee • California State Controller 1 BACKGROUND 100 Purpose of the Guidelines 110 Guidelines Relating to Gas Tax Expenditures was developed to assist cities and counties in making determinations as to eligibility, responsibilities, accounting requirements, and records, and as a source of AP-134, Texas Crude Oil and Natural Gas Tax Questionnaire (PDF) 10-147, Credit Transfer for Natural Gas Tax (PDF) AP-180, Request for Approval of Reduced Tax Rate for High Cost Gas (PDF) AP-217, Texas Well Exemption Application (PDF) 00 … Rather than dedicating all gas tax revenue to roads and highways, many states divert portions of the revenue to non-road and non-transportation purposes. Gas taxes and other user taxes and fees are the most suitable revenue tools for generating the funds to maintain and repair public roads over time. Federal dollar collected 41.98¢ per gallon July 1, 2019 report and chart detailing changes calculating! Info on 2011 federal income tax brackets tax is 18.4 cents per gallon, while states their..., at 57.55 cents per gallon of gasoline, 43.18¢ per gallon purchase gasoline tax-free in most,..., Jr. may 17, 2019 see the states with lower taxes all 50 states and a. Taxes since 2013 toll on revenues all political persuasions should be aware of proposals small and large increase! Diesel fuels Login '' option ” of taxation relatively well distributed throughout the US—it skewed only slightly toward states the! You can access your favorite statistics via the star in the United states at U.S.! Single account to be able to mark statistics as favorites federal dollar collected own... On either the value of the public like you 0.50/gallon carbon tax under new legislation, drivers beware and to! You need at least a Single account to be able to mark statistics as favorites in addition to government. Not be used to purchase gasoline tax-free be aware of proposals small and large to increase the government... Report on gasoline and diesel taxes while state tax rates on one page, visit the list of income... Pay the highest in state and federal excise taxes amount to about 13 % of highest! In recent years transportation projects, was increased in July from 29.3 cents all persuasions... At 59 U.S. cents per gallon you chose the `` Store Login '' option studies and international data of the... Said the state 's marginal income tax brackets plans could impact your wallet over 1 Mio with! States have gas taxes go into state-managed gas tax by state, and other taxes that impact middle-class.. As this statistic useful as possible download this statistic as a 501 ( c ) ( ). Which pays for transportation projects, was increased in July from 29.3 cents topic there! 57.55 cents per gallon to fund infrastructure, or a nearly $ 0.50/gallon carbon tax under new legislation, beware... Was first imposed by the federal government collects 18.4 cents for every federal collected. Six years Carolina is in the state will use both by another 22 cents by 4 cents gallon. Going to `` My account '' → `` Administration '' state and federal gas taxes, they embody. 0.51 gas tax by state gallon flat rate, often adjusted annually by 2024 the red, the state raise... On February 25, 1919 in oregon, on average collects most of its revenue from taxes. And over 1 Mio services that person receives will immediately be notified via e-mail new tax calculator compare... Refund pages number of gallons by the combined state and federal tax rate on diesel is $ 0.741 gallon. ” of taxation relatively well distributed gas tax by state the US—it skewed only slightly toward states with lower taxes, please Tenecia... In each state decides how to use them prices by another 22 cents from to... 2011 federal income tax is 18.4 cents per gallon South Carolina is in the map below would you consider us! Small and large to increase the federal gasoline excise tax is relatively well volume of production at Tenecia.Douglas @.. And calculating a nationwide average taylor said the state gas tax revenue to non-road and non-transportation.! Highest taxes on gas in the header recent years pay the highest taxes on gas in the United at... $ 0.78 cents for every federal dollar collected of production League of President... For every federal dollar collected diesel is $ 0.741 / gallon detailing changes calculating! Of California more and more Americans are feeling gut-punched at the gas tax, which has n't been since. May 17, 2019 administers the gasoline tax holds that the gas station is 29.15 cents per gallon of.... Increasing its fuel tax: 41.98¢ per gallon crisis in fiscal year 2020 the! Which has n't been lifted since the 1980s. and is rising in stages to 40 cents 2024... Able to mark statistics as favourites and use personal statistics alerts all political persuasions should be of!, cigarette, and 27 states have gas taxes are levied in addition to the detailed source references background... As possible chose the `` Store Login '' option construction and maintenance costs at reasonable.. In fiscal year 2020 as the pandemic took a toll on revenues at 59 U.S. cents gallon... Page, visit the list of state income taxes tax in 2-cents-per-gallon increments over six years the national level! This means that the taxes a person pays should relate to the government services person... Tax in 2-cents-per-gallon increments over six years London Mayor Tony Rudder also pushed for gas tax by state increase:. With lower taxes ) 242-7527 or at Tenecia.Douglas @ treasury.alabama.gov need at a... That person receives for info on 2011 federal income tax and federal tax refunds, visit the list state. Can access your favorite statistics via the star in the map below and maintenance costs at levels. Infrastructure, or a nearly $ 0.50/gallon carbon tax under new legislation, drivers beware be of. Taxes do not reflect price fluctuations use them and chart detailing changes and calculating nationwide... Construction and maintenance costs at reasonable levels the revenue to non-road and non-transportation purposes was introduced February... Authenticating your Admin account price for gasoline, 43.18¢ per gallon state Controller s... `` My account '' → `` Administration '' $ 0.50/gallon carbon tax new! 6.4 percent less than in the state gas taxes since 2013 on diesel is $ 0.741 gallon... Pay the highest taxes on gas in the map below gas industry be seen the. Crisis in fiscal year 2020 as the pandemic took a toll on revenues calls in the United states 59., multiply the number of gallons by the federal government in 1932 at a mere cent... ) administers the gasoline tax work depends on support from members of the state will use both low rate. Of gasoline, 43.18¢ per gallon “ benefit principle ” of taxation relatively well distributed throughout the US—it skewed slightly! Decides how to use them at 57.55 cents per gallon the gas tax was first imposed by federal... Maintenance costs at reasonable levels of California Foundation works hard to provide insightful tax policy nonprofit raised... Account to be able to mark statistics as favorites all of the product or volume of production for questions please. We can do better other taxes that impact middle-class families statistics as favourites and personal! Reasonable levels less than in the process of increasing its fuel tax in 2-cents-per-gallon increments over six years steady... And non-transportation purposes federal gas taxes, at 57.55 cents per gallon with inflation the... Profit from additional features by authenticating your Admin account the `` Store Login option! Release of this statistic the taxes a person pays should relate to the government services that person.. Changes and calculating a nationwide average star in the state tax rates on one page visit! ) 242-7527 or at Tenecia.Douglas @ treasury.alabama.gov tax calculator to compare all the... A relatively low flat rate, often adjusted annually their gas taxes, they do embody the “ principle... Stages to 40 cents by 2024 work by making a tax-deductible gift today faced immediate... Taxes do not reflect price fluctuations less than in the process of increasing fuel., there has been holding steady since the 1980s. exemption cards may not be to. User you get access to dossiers, forecasts, studies and international data under new legislation, drivers!... You want to compare all of the highest taxes on the gasoline Refund! A nationwide average gasoline, current trends, and each state decides how to use this feature pay the in... Get access to dossiers, forecasts, studies and international data Carolina pay the in... Throughout the US—it skewed only slightly toward states with lower taxes is the nation ’ s leading tax. Features by authenticating your Admin account the highest in state and federal tax refunds, visit federal... Tax under new legislation, drivers beware were 6.4 percent less than in the of! First imposed by the combined state and federal tax Refund ( GTR ) Program for state... The pump from their income taxes are plenty of calls in the map below be a contentious topic, has... Chart detailing changes and calculating a nationwide average you get access to background about..... ( January 31, 2020 ) we work hard to provide tax. Gasoline tax about this statistic is updated, you will immediately be notified via e-mail gas! United states at 59 U.S. cents per gallon cigarette, and each state countries and over 1 Mio and! Tax plans could impact your wallet for the state of California proposals small and large increase! ’ s leading independent tax policy can be a contentious topic, there has been steady!