Average state tax rates for retail gasoline and diesel fuel nearly flat since July 2024
As of January 1, 2025, 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 table on federal and state motor fuel taxes. Since July 2024, average taxes on both gasoline and diesel have remained nearly flat, increasing less than half of one cent each.
Although national average tax rates were nearly flat, changes occurred in several states. Gasoline taxes decreased in six states, with Indiana’s decrease of $0.036 to $0.525/gal being the largest. Gasoline taxes increased in eight states, with Minnesota having the largest increase of $0.031 to $0.319/gal.
Note: Tax rates in states not shown did not change.
Diesel fuel taxes decreased in four states, with Michigan’s tax decrease of $0.036 being the largest. Diesel taxes increased in nine states, with Connecticut having the largest increase of $0.032 to $0.524/gal.
Note: Tax rates in states not shown did not change.
Federal tax rates remain at $0.184/gal for gasoline and $0.244/gal for diesel, which includes excise tax and an additional $0.001/gal from the Leaking Underground Storage Tank (LUST) 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 ($0.6610/gal), and Pennsylvania ($0.5870/gal). Those same three states also had the highest diesel taxes: California ($0.9212/gal), Pennsylvania ($0.7410/gal), and Illinois ($0.7360/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: Marcela Bradbury