Cross a state line with a load of fuel and the tax can change a lot, in both the amount and the way it is figured. State rates run from under 20 cents a gallon to nearly 60, and some reset every year while others have held for decades. Below is a state-by-state snapshot, then the four structures that explain the differences.
State gasoline tax at a glance
Approximate state gasoline tax and how each state sets it. Several states index to inflation or wholesale price, so these move; always confirm the current figure with the state's revenue or transportation department before you rely on it.
| State | Gas tax | How it is set |
|---|---|---|
| Arizona | ~18¢ | Flat; heavy-vehicle diesel taxed by a use-fuel rate. |
| California | ~61¢ | Indexed to CPI under SB1, reset each July; sales tax on top. |
| Colorado | 22¢ + fees | Flat excise since 1991, plus road usage fees that ramp up. |
| Florida | ~22¢ + SCETS | CPI-indexed state rate, SCETS tax, and county options; varies by county. |
| Georgia | ~33¢ | Adjusted annually; has been suspended during emergencies. |
| Illinois | ~49¢ | Indexed each July; sales tax on fuel on top. |
| Indiana | 36¢ + use tax | Flat excise plus a gasoline use tax set monthly off retail price. |
| Iowa | Varies | Ethanol differential: the rate depends on ethanol content and shifts yearly. |
| Kansas | 24¢ | Flat; diesel a touch higher. |
| Kentucky | ~26¢ | Tied partly to the average wholesale price; can move with the market. |
| Maryland | ~47¢ | Indexed to inflation, steps up most years. |
| Michigan | 51¢ | Public Acts 17-20 of 2025 ended the sales tax on fuel and raised the flat excise, effective January 1, 2026; indexed to inflation going forward. |
| Minnesota | ~33¢ | Newly indexed, now rising on a schedule. |
| Missouri | ~30¢ | Phased increase, with a refund option for some uses. |
| New Jersey | ~49¢ | Fixed motor fuels tax plus a petroleum gross receipts tax that adjusts to a cap. |
| New York | Layered | Low excise plus the petroleum business tax plus sales tax on fuel. |
| North Carolina | ~41¢ | Set once a year by formula, plus a small inspection tax. |
| Ohio | 38.5¢ | Flat since 2019; diesel taxed higher (~47¢). |
| Oklahoma | 19¢ | Among the lowest in the nation; flat by fuel type. |
| Oregon | 40¢ | Per-gallon on gasoline; heavy trucks pay a weight-mile tax instead of diesel tax. |
| Pennsylvania | ~58¢ | Built on an oil company franchise tax tied to wholesale price; among the highest rates. |
| South Carolina | 28¢ | Motor fuel user fee, phased in and flat since 2022. |
| Tennessee | ~27¢ | Gasoline tax plus a small special petroleum fee. |
| Texas | 20¢ | Flat since 1991; no inflation adjustment. |
| Virginia | ~31¢ | Indexed annually, plus a separate sales tax on fuel. |
| Washington | ~55¢ | Among the highest; raised by legislation in 2025. |
| Wisconsin | ~31¢ | Same rate on gas and diesel, plus a petroleum inspection fee. |
The four structures
Almost every state fits one of four patterns, and the pattern tells you how often the number moves:
- Flat per-gallon excise. A fixed rate that rarely changes. Texas has held 20 cents a gallon since 1991 with no inflation adjustment, so the number is easy to plan around but slowly loses ground to inflation.
- Inflation-indexed. A rate that resets on a schedule. Florida adjusts its state rate to the Consumer Price Index each January and adds the SCETS tax plus local-option county taxes, so the pump tax can differ county to county. Many other indexed states reset each July.
- Price-linked. Tied to the wholesale cost of fuel. Pennsylvania builds its tax on an oil company franchise tax pegged to the average wholesale price, which keeps it among the highest state rates in the country.
- Layered. Several separate taxes stacked together. New Jersey charges a fixed motor fuels tax plus a petroleum products gross receipts tax that is adjusted to hit a set revenue target, so the combined rate moves when collections fall short.
A few states sit outside the four patterns. Iowa taxes gasoline by its ethanol content, recalculating the rate each year from how much ethanol the state's fuel contains. Oregon taxes heavy trucks by their weight and the miles they drive through a weight-mile tax, so those trucks pay no per-gallon diesel tax. Michigan rewrote its structure under Public Acts 17-20 of 2025: starting January 1, 2026, the sales tax on fuel ended and the flat excise rose to 51 cents, indexed to inflation, so the money stays in the road fund. Cases like these are why a single national rule never fits.
The multi-state challenge
The dollars scale fast. On one 8,000-gallon transport load of gasoline, Texas's 20-cent rate comes to $1,600 in state tax. The same load in California at roughly 61 cents is about $4,880. That is a $3,280 swing on a single load, before federal tax, local add-ons, or any exemption that might apply.
For a jobber operating across state lines, the hard part is the mix: flat states that never move, indexed states that change every July or January, price-linked states that drift with the market, and layered states with several pieces. Each files on its own calendar with its own rules, which is the gap FastDragon Fuel Jobber closes by carrying every state's rate, structure, and schedule for you. The fleet side has its own system for this in IFTA, and it all sits on top of the federal motor fuel excise tax.
Frequently asked
Who actually remits state fuel tax, the gas station or the distributor?
In most states the tax is imposed when fuel leaves the terminal rack, and the licensed supplier or distributor files the return and sends in the money. The cost then passes down the chain inside the price of each load until it reaches the pump. That is why distributors carry fuel tax licenses and bonds while most retailers never file a fuel tax return.
Is diesel taxed at the same rate as gasoline?
Usually not. Many states charge a few cents more per gallon on diesel because heavy trucks put more wear on roads, and the federal rate is higher too: 24.4 cents on diesel versus 18.4 cents on gasoline. Diesel dyed red for off-road use is sold without the excise tax, and using it on the highway draws steep penalties.
Are there county or city fuel taxes on top of the state rate?
In some states, yes. Hawaii sets fuel tax rates county by county, Nevada counties add their own per-gallon amounts, and several Oregon cities, including Portland, charge a local gas tax. If you sell or deliver fuel in one of these states, the jurisdiction of the sale changes the total tax, so check at the county or city level.
Can a business get state fuel tax refunded?
Often, if the fuel never touched a public road. Most states refund tax on fuel burned in farm equipment, construction machinery, refrigeration units, and other off-highway uses, and many exempt sales to government agencies. Each state has its own claim form, deadline, and record requirements, so keep gallon-level records of exempt use.
Does the federal fuel tax come on top of state taxes?
Yes. The federal excise tax of 18.4 cents per gallon on gasoline and 24.4 cents on diesel, which includes a 0.1 cent leaking underground storage tank fee, applies in every state and has not changed since 1993. Whatever a state charges stacks on that federal floor.