The fluctuating prices of gasoline aren't just dependent on oil market trends. Taxes imposed on fuel are a significant component of the price per gallon, varying dramatically from state to state across the U.S. These fuel taxes are an essential piece of the taxation puzzle, contributing to state revenue and affecting consumers' daily lives directly. While the federal motor fuel tax rates are fixed at $0.184/gallon for gasoline and $0.244/gallon for diesel, it's the contrasting state-level taxes that compel a closer examination. These taxes, in combination with federal, local, and sales taxes, create a combined gas tax that drivers pay at the pump. Generally, these funds go towards transportation related projects such as highway and road maintenance.
Emerging prominently at the top of our list is Pennsylvania, with the highest state gasoline tax of $0.61 per gallon, significantly above the national average. Close behind in the second position, we find the Golden State, California. Despite its reputation for promoting alternate energy and efficient vehicles, it stands with a gas tax of $0.54 per gallon. The funds raised from this tax are pivotal in maintaining California's vast and busy roadways. The third-highest gas tax is in the northwestern state of Washington, where drivers pay an additional $0.49 for each gallon. Sharing the fourth position are Maryland, Illinois, and New Jersey, each levying a gas tax of $0.42 per gallon. In these states, an increased tax burden on fuel has been enlisted as part of larger strategies to tackle road maintenance and other transportation concerns without adding to the state’s debt. Further down on the list, but still with a significantly high gas tax, we find North Carolina at $0.40 per gallon, followed by Oregon with a tax of $0.38 per gallon. West Virginia has enacted a tax of $0.37 per gallon, while Vermont rounds out the top ten with a tax of $0.36 per gallon. Highest Gas Taxes by State: