The United States federal excise tax on gasoline is 18.4 cents per gallon and 24.4 cents per gallon for diesel fuel.Federal Highway Administration US Department of Transportation, Federal Highway Administration: When did the Federal Government begin collecting the gas tax? Proceeds from the tax partly support the Highway Trust Fund. The federal tax was last raised on October 1, 1993, and is not indexed to inflation, which increased 122% from October 1993 until November 2025. On average, , state and local taxes and fees add 34.24 cents to gasoline and 35.89 cents to diesel, for a total US volume-weighted average fuel tax of 52.64 cents per gallon for gas and 60.29 cents per gallon for diesel.
State taxes The first US state to tax fuel was Oregon, introduced on February 25, 1919.Corning, Howard M. Dictionary of Oregon History. Binfords & Mort Publishing, 1956. It was a 1¢/gal tax. In the following decade, all of the US states (48 at the time), along with the District of Columbia, introduced a gasoline tax. By 1939, many states levied an average fuel tax of 3.8¢/gal (1¢/L).
In the years since being created, state fuel taxes have undergone many revisions. While most fuel taxes were initially levied as a fixed number of cents per gallon, , nineteen states and District of Columbia have fuel taxes with rates that vary alongside changes in the price of fuel, the inflation rate, vehicle fuel-economy, or other factors.
The table below includes state and local taxes and fees. The American Petroleum Institute uses a weighted average of local taxes by municipality population to create an average tax for the entire state. Similarly, the national average is weighted by the fuel volume sold in each state. Because many states with the highest taxes also have higher populations, more states (i.e., the less populated ones) have below-average taxes than above-average taxes.
Most states exempt gasoline from general sales taxes. However, several states collect full or partial sales tax in addition to the excise tax. Sales tax is not reflected in the rates below.
+ Taxes on gasoline and diesel for transportation by US state in US cents per gallon as of July 2025 State Gasoline tax (¢/gal) (excludes federal tax of 18.4¢/gal) Diesel tax (¢/gal)(excludes federal tax of 24.4¢/gal)Notes Alabama31.0032.75 Alaska8.958.95 Arizona19.0027.00 Arkansas25.0028.80 California70.9287.32Gasoline subject to 2.25% sales tax. Diesel subject to 9.25% sales tax. Colorado29.1834.68In Colorado Springs, Off-road Dyed Diesel and Gasoline are subject to a local city sales tax. Connecticut25.0048.90Subject to additional 8.1% sales tax Delaware23.0022.00 District of Columbia35.3035.30 Florida39.4040.27may also be subject to local option taxes of up to an additional 12 cents Georgia33.8537.85subject to local sales tax Hawaii18.5018.50also subject to county tax of 8.8-18.0 cents and additional sales tax Idaho33.0033.00 Illinois66.4073.90Also subject to 6.25% state sales tax and varying local and municipal sales taxes. Interstate carriers are subject to interstate motor fuel use higher taxes. Indiana54.5062.00Indiana has two taxes on gasoline — a 7% sales tax (that is calculated monthly) and a tax directed to infrastructure projects. Iowa30.0032.50 Kansas25.0427.03 Kentucky26.4023.40 Louisiana20.9320.93 Maine31.4031.87 Maryland46.1946.94 Massachusetts27.4727.47 Michigan48.2049.90subject to additional 6% sales tax Minnesota31.9031.90 Mississippi21.4021.40 Missouri29.9929.99 Montana33.7530.50 Nebraska32.7032.10 Nevada23.8127.75also subject to additional local taxes New Hampshire23.8323.83 New Jersey44.9551.95 New Mexico18.8822.88 New York24.8723.07subject to additional state sales tax of 4% (capped at $2.00/gal) and local sales tax (not capped), average combined sales taxes add roughly 20 cents North Carolina40.5540.55 North Dakota23.0323.03 Ohio38.5047.00 Oklahoma20.0020.00 Oregon40.0040.00additional local option of 1 to 5 cents Pennsylvania58.7074.10 Rhode Island41.1241.12 South Carolina28.7528.75 South Dakota30.0030.00 Tennessee27.4028.40 Texas20.0020.00 Utah39.1539.15 Vermont31.3933.00 Virginia41.6042.70 Washington59.0462.04rates began July 1, 2025 and increase 2% annually. West Virginia35.7035.70 Wisconsin32.9032.90 Wyoming24.0024.00
Federal taxes
The first federal gasoline tax in the United States was created on June 6, 1932, with the enactment of the Revenue Act of 1932, which taxed 1¢/gal (0.3¢/L). Since 1993, the US federal gasoline tax has been unchanged (and not adjusted for inflation of nearly 113 percent through 2023) at 18.4¢/gal (4.86¢/L). Unlike most other goods in the US, the price advertised (e.g., on pumps and stations' signs) includes all taxes, as opposed to inclusion at the point of purchase (i.e., as opposed to prices of goods in, e.g., many stores advertised on shelves without tax which is instead calculated at checkout by many vendors).
Then-Secretary of Transportation Mary Peters stated on August 15, 2007, that about 60% of federal gas taxes are used for highway and bridge construction. The remaining 40% goes to earmarked programs, including a minority for mass transit projects.Online NewsHour: Conversation | Peters Discusses Infrastructure | August 15, 2007 | PBS However, revenues from other taxes are also used in federal transportation programs.
Federal tax revenues
Federal fuel taxes raised $36.4 billion in Fiscal Year 2016, with $26.1 billion raised from gasoline taxes and $10.3 billion raised from diesel and special motor fuel taxes. The tax was last raised in 1993 and is not indexed to inflation. Total inflation from 1993 until 2017 was 68 percent or up to 77 percent, depending on the source.CPI Inflation Calculator
Public policy Some policy advisors believe an increased tax is needed to fund and sustain the country's transportation infrastructure, including mass transit. As infrastructure construction costs have grown and vehicles have become more fuel efficient, the purchasing power of fixed-rate gas taxes has declined (i.e., the unchanged tax rate from 1993 provides less real money than it originally did, when adjusted for inflation). To offset this loss of purchasing power, The National Surface Transportation Infrastructure Financing Commission issued a detailed report in February 2009 recommending a 10 cent increase in the gasoline tax, a 15 cent increase in the diesel tax, and a reform tying both of these tax rates to inflation.
Critics of gas tax increases argue that much of the revenue is diverted to other government programs and debt servicing unrelated to transportation infrastructure. However, other researchers have noted that these diversions can occur in both directions and that gas taxes and "user fees" paid by drivers are not high enough to cover the full cost of road-related spending.
Some believe an increased fuel cost would encourage less consumption and reduce America's dependence on foreign oil. Americans sent nearly $430 billion to other countries in 2008 for the cost of imported oil. However, significantly since 2008, increased domestic output (e.g., fracking of shale and other energy resource discoveries) and rapidly growing production efficiencies have reduced considerably such spending, and this falling trend is expected to continue.
Aviation fuel taxes
Aviation gasoline (Avgas): The tax on aviation gasoline is $0.194 per gallon. When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $0.141 per gallon.
Kerosene for use in aviation (Jet fuel): Generally, kerosene is taxed at $0.244 per gallon unless a reduced rate applies. For kerosene removed directly from an on-airport terminal (ramp) directly into the fuel tank of an aircraft for use in non-commercial aviation, the tax rate is $0.219. The rate of $0.219 also applies if kerosene is transported directly into any aircraft from a qualified refueler truck, tanker, or tank wagon that is loaded with the kerosene (again, when done directly on-airport, e.g., on the ramp). Notably, the airport terminal doesn't need to be a passenger-carrying, secured airport terminal for this rate to apply. However, the refueling truck, tanker, or tank wagon must meet the requirements discussed later under particular refueler trucks, tankers, and tank wagons treated as terminals.
These taxes mainly fund airport and Air Traffic Control operations by the Federal Aviation Administration (FAA), of which commercial aviation is the biggest user.
+ Taxes on gasoline and kerosene for aviation use have different tax rates than ground transportation by US state. The rate shown is in US cents per gallon as of September 2017 (an updated list is available as of February 2021). State Aviation Fuel Tax(excludes federal tax of 19.4¢/gal) Jet Fuel Tax(excludes federal tax of 24.4¢/gal)Notes Alabama9.53.5 Alaska4.73.2 Arizona5.00Jet Fuel is not subject to Motor Fuel Taxes Arkansas21.822.8Aviation Fuel and Jet Fuel are subject to 6.5% State Sales and Use Tax plus local sales and use tax based on the point of delivery California18.02.0 Colorado6.04.0 ConnecticutexemptexemptSubject to additional 8.1% sales tax Delaware23.00exempt District of Columbia23.5023.50 Florida6.956.9may also be subject to local option taxes of up to an additional 12 cents Georgia7.57.5subject to local sales tax Hawaii1.01.0also subject to county tax of 8.8-18.0 cents and additional sales tax Idaho7.06.0 Illinois1.11.1 Indiana49.021.0 Iowa8.05.0 Kansas24.026.0 Kentucky26.00exemptJet Fuel is subject to 6% Sales Tax LouisianaexemptexemptExempt if used for aviation use; otherwise 20.0 cents per gallon Maine30.03.4 Maryland7.07.0 Massachusetts27.310.9 Michigan3.03.0 Minnesota5.015.0 Mississippi6.45.25 Missouri9.0exemptAdditional charges apply for agriculture inspection fee and underground storage fee Montana4.04.0 Nebraska5.03.0 Nevada2.01.0also subject to additional county taxes, up to 8 cents per gallon on Aviation Fuel, 4 cents per gallon for Jet Fuel New Hampshire4.02.0The rate for Jet Fuel for aircraft operating under FAR Part 121 is 0.5 cents per gallon New Jersey10.5613.56 New Mexico17.0See notesJet Fuel is subject to gross receipts tax New York6.56.5 North Carolina0.00250.0025tax is an inspection fee North Dakota8.08.0 Ohioexemptexempt Oklahoma0.080.08Also, there is a $.01 per gallon Underground Storage Fee is due on all motor fuels Oregon11.03.0 Pennsylvania5.51.6 Rhode Islandexemptexempt South Carolina0.250.25Taxes are for inspection fee and environmental impact fee South Dakota6.04.0 Tennessee1.41.4 Texas20.020.0 Utah9.06.52.5 cents for federally certificated air carriers (@ international airport) 6.5 cents for federally certificated air carriers (airports other than international) 9 cents/gallon all other operations Vermont31.22See NotesJet Fuel is subject to 6% Sales Tax Virginia5.05.0 Washington11.011.0 West Virginia11.711.7 Wisconsin6.06.0 Wyoming5.05.0
See also Carbon taxes in the United States Excise tax in the United States Federal Highway Trust Fund (United States) Gas tax holiday National Association of Convenience Stores RBOB - (Reformulated Blendstock for Oxygenate Blending)
References
External links History of the gas tax in the United States 2013 NACS Annual Fuels Report