Average state tax rates for retail gasoline and diesel fuel flat since January 2024

As of July 1, 2024, state taxes and fees on gasoline and diesel fuel averaged $0.33 per gallon (gal) of gasoline and $0.35/gal of diesel fuel, according to our federal and state motor fuel taxes table. Since January 2024, both the gasoline and diesel average taxes have remained nearly flat, increasing less than half of one cent each.

Although the national average tax rates were nearly flat, several states saw changes. Gasoline taxes decreased in three states, with Kentucky having the largest decrease, falling $0.023 to $0.2780/gal. Gasoline taxes increased in nine states, with Indiana having the largest increase of $0.044 to $0.5610/gal.

Diesel fuel taxes decreased in four states, with California’s tax decrease of $0.0420 being the largest. Diesel taxes increased in eight states, with the largest increase in Colorado, which rose by $0.0263 to $0.3068/gal.

Federal tax rates remain at $0.1840/gal for gasoline and $0.2440/gal for diesel, which includes excise tax and an additional $0.001/gal from the Leaking Underground Storage Tank Fund.

The same three states had the lowest gasoline and diesel taxes: Alaska (both at $0.0895/gal), Mississippi (both at $0.1840/gal), and Hawaii (both at $0.1850/gal). The three states with the highest gasoline taxes were California ($0.6982/gal), Illinois ($0.6710/gal), and Pennsylvania ($0.5870/gal). Those same three states also had the highest diesel taxes: California ($0.9212/gal), Illinois ($0.7460/gal), and Pennsylvania ($0.7410/gal).

We update information about federal and state motor fuel taxes in the United States on a semiannual basis, based on tax rates at the beginning of January and July each year.

Principal contributor: Dan Walzer