Gas tax and price in select U.S. states 2022

California has the highest tax rate on gasoline in the United States. As of March 2022, the gas tax in California amounted to 68 U.S. cents per gallon, compared with a total gas price of 5.79 U.S. dollars per gallon. Meanwhile, Alaska had the lowest gas tax out of all U.S. states, at 14 U.S. cents in 2021.

Gas tax rate increases across the U.S.

The average gasoline tax rate in the United States sat at 28.09 cents per gallon in 2020, with diesel taxes averaging 29.4 cents per gallon. State taxes on fuel were first introduced in Oregon in 1919 while the rest of the states followed suit within the next decade.

Gas price components

Out of all components making up retail gasoline prices, federal and state taxes are one of the strongest determinants for how much consumers pay for gas. These taxes are generally invested back into the construction and repair of road infrastructure. The federal government also places a tax on gasoline sold in the country, but almost every gas tax imposed by the states themselves is higher than this federal rate. Higher gasoline taxes may also affect driving habits, as those who live in states with higher gas taxes tend to drive less when other options are available.