Fuel Saver

How Do Fuel Taxes Differ By State?

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Fuel taxes may not be something that the average person thinks about a lot, but fleets certainly have to consider them, as fuel makes up over half of most fleets’ budgets. The fuel tax funds the Highway Trust Fund for projects that improve our country’s roads, bridges, tunnels, and other infrastructure. It is vital as our infrastructure ages to ensure that we stay on top of maintenance and repairs. While there is a federally mandated 18.4 cents of tax on regular gasoline and 24.4 cents on diesel fuel, actual gas tax amounts vary in each state. Find out which states have the cheapest tax, the most expensive tax, and the state fuel tax rates in between. 

Cheapest Fuel Taxes

In breaking down fuel tax by state, most people want to know where to find the cheapest fuel taxes. The least expensive state is Alaska. The next most affordable states are Hawaii, Virginia, Arizona, and Texas. We break those prices down below.

State

Gas Tax 

Diesel Tax

Alaska

$0.0895 per gallon

$0.0895 per gallon

Hawaii

$0.16 per gallon

$0.16 per gallon

Virginia

$0.162 per gallon

$0.202 per gallon

Arizona

$0.19 per gallon

$0.19 per gallon

Texas

$0.20 per gallon

$0.20 per gallon

Highest Fuel Taxes

Another aspect people look out for when looking at fuel tax by state is the most expensive fuel tax. High tax rates can lead to significant increases in fuel budgets for fleets that operate out of these states and may pose challenges for small businesses. Pennsylvania has the highest gas tax, followed by California, Washington, New Jersey, and New York. We break down these prices below. 

State

Gas Tax

Diesel Tax 

Pennsylvania

$0.586 per gallon

$0.741 per gallon

California

$0.533 per gallon

$0.68 per gallon

Washington

$0.519952 per gallon

$0.519952 per gallon

New Jersey 

$0.414 per gallon

$0.485 per gallon

New York 

$0.4045 per gallon

$0.3865 per gallon 

Other Fuel Taxes

Of course, other states’ fuel taxes range everywhere in between these prices. Find your state’s fuel tax on the list below if it wasn’t included in one of the lists above.

State

Gas Tax

Diesel Tax

Alabama

$0.24 per gallon

$0.2575 per gallon

Arkansas

$0.248 per gallon

$0.288 per gallon

Colorado

$0.2325 per gallon

$0.20625 per gallon

Connecticut

$0.25 per gallon

$0.465 per gallon

Delaware

$0.23 per gallon

$0.22 per gallon

District of Columbia

$0.235 per gallon

$0.235 per gallon

Florida

$0.34396 per gallon

$0.35271 per gallon

Georgia

$0.279 per gallon

$0.313 per gallon

Idaho

$0.33 per gallon

$0.33 per gallon

Illinois

$0.391 per gallon

$0.466 per gallon

Indiana

$0.30 per gallon

$0.49 per gallon

Iowa

$0.305 per gallon

$0.325 per gallon

Kansas

$0.2403 per gallon

$0.2603 per gallon

Kentucky

$0.26 per gallon

$0.23 per gallon

Louisiana

$0.20125 per gallon

$0.20125 per gallon

Maine 

$0.31404 per gallon

$0.3187 per gallon

Maryland

$0.368905 per gallon

$0.376405 per gallon

Massachusetts 

$0.24 per gallon

$0.24 per gallon

Michigan

$0.263 per gallon

$0.263 per gallon

Minnesota

$0.286 per gallon

$0.286 per gallon

Mississippi

$0.184 per gallon

$0.184 per gallon

Missouri

$0.1742 per gallon

$0.1742 per gallon

Montana

$0.3275 per gallon

$0.302 per gallon

Nebraska

$0.306 per gallon

$0.296 per gallon

Nevada

$0.23805 per gallon

$0.2775 per gallon

New Hampshire

$0.23825 per gallon

$0.23825 per gallon

New Mexico

$0.18875 per gallon

$0.22875 per gallon

North Carolina

$0.3635 per gallon

$0.3635 per gallon

North Dakota

$0.23025 per gallon

$0.23025 per gallon

Ohio

$0.385 per gallon

$0.385 per gallon

Oklahoma

$0.20 per gallon

$0.20 per gallon

Oregon

$0.36 per gallon

$0.36 per gallon

Rhode Island 

$0.35119 per gallon

$0.35119 per gallon

South Carolina 

$0.2275 per gallon

$0.2275 per gallon

South Dakota 

$0.30 per gallon

$0.30 per gallon

Tennessee 

$0.274 per gallon

$0.284 per gallon

Utah

$0.3175 per gallon

$0.3175 per gallon

Vermont

$0.3073 per gallon

$0.32 per gallon

West Virginia

$0.357 per gallon

$0.357 per gallon

Wisconsin

$0.329 per gallon

$0.329 per gallon

Wyoming

$0.24 per gallon

$0.24 per gallon

Conclusion

Knowing the fuel tax in your state is crucial to budgeting for fuel for your fleet. When it comes to finding out how much you’re spending on fuel, fleet management software can help you determine where your money is going and how to save on fuel costs. Azuga offers state-of-the-art fleet management software for fleets of all sizes. Try out a demo today and find out what Azuga can do for your fleet.