Gas Tax Rates By State For 2023

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Gas Tax Rates by State, 2021 State Gas Taxes Tax Foundation
Gas Tax Rates by State, 2021 State Gas Taxes Tax Foundation from taxfoundation.org

Overview of Gas Taxes in the United States

When it comes to taxes, gas taxes are one of the most common taxes that are charged in the United States. According to the American Petroleum Institute, the average state and federal taxes on a gallon of gasoline are 49 cents in the US. This tax rate is higher than the global average of 23 cents per gallon. In the United States, the taxes on gas are typically divided between the federal, state, and local levels of government. The federal gas tax rate is 18.4 cents per gallon and is applied to all gasoline sold in the United States. The states and local governments then add their own taxes to the federal rate, resulting in a higher rate for each state. The gas taxes that are imposed by the states vary significantly from state to state. Some states, such as Alaska, have no state gas tax, while other states, such as California, have some of the highest gas taxes in the nation. In this article, we will review the gas tax rates by state for 2023.

Gas Tax Rates by State for 2023

In 2023, the following states have the highest gas taxes in the United States:

California

California has the highest gas tax rate in the United States at 73.2 cents per gallon. This rate includes the federal gas tax of 18.4 cents per gallon, as well as the state gas tax of 54.8 cents per gallon. California’s gas tax rate is the highest in the nation due to the state’s high cost of living.

Connecticut

Connecticut has the second-highest gas tax rate in the United States at 71.2 cents per gallon. This rate includes the federal gas tax of 18.4 cents per gallon, as well as the state gas tax of 52.8 cents per gallon. Connecticut’s gas tax rate is higher than average due to its higher cost of living.

Washington

Washington has the third-highest gas tax rate in the United States at 67.6 cents per gallon. This rate includes the federal gas tax of 18.4 cents per gallon, as well as the state gas tax of 49.2 cents per gallon. Washington’s gas tax rate is higher than average due to its higher cost of living.

Hawaii

Hawaii has the fourth-highest gas tax rate in the United States at 66.4 cents per gallon. This rate includes the federal gas tax of 18.4 cents per gallon, as well as the state gas tax of 48 cents per gallon. Hawaii’s gas tax rate is higher than average due to its higher cost of living.

New York

New York has the fifth-highest gas tax rate in the United States at 63.3 cents per gallon. This rate includes the federal gas tax of 18.4 cents per gallon, as well as the state gas tax of 44.9 cents per gallon. New York’s gas tax rate is higher than average due to its higher cost of living.

Alaska

Alaska is the only state in the United States with no state gas tax. The gas tax rate in Alaska is only 18.4 cents per gallon, which includes the federal gas tax of 18.4 cents per gallon.

Florida

Florida has the sixth-lowest gas tax rate in the United States at 54.5 cents per gallon. This rate includes the federal gas tax of 18.4 cents per gallon, as well as the state gas tax of 36.1 cents per gallon. Florida’s gas tax rate is lower than average due to its lower cost of living.

South Carolina

South Carolina has the seventh-lowest gas tax rate in the United States at 52.9 cents per gallon. This rate includes the federal gas tax of 18.4 cents per gallon, as well as the state gas tax of 34.5 cents per gallon. South Carolina’s gas tax rate is lower than average due to its lower cost of living.

Mississippi

Mississippi has the eighth-lowest gas tax rate in the United States at 50.7 cents per gallon. This rate includes the federal gas tax of 18.4 cents per gallon, as well as the state gas tax of 32.3 cents per gallon. Mississippi’s gas tax rate is lower than average due to its lower cost of living.

Louisiana

Louisiana has the ninth-lowest gas tax rate in the United States at 48.1 cents per gallon. This rate includes the federal gas tax of 18.4 cents per gallon, as well as the state gas tax of 29.7 cents per gallon. Louisiana’s gas tax rate is lower than average due to its lower cost of living.

Missouri

Missouri has the tenth-lowest gas tax rate in the United States at 45.8 cents per gallon. This rate includes the federal gas tax of 18.4 cents per gallon, as well as the state gas tax of 27.4 cents per gallon. Missouri’s gas tax rate is lower than average due to its lower cost of living.

Conclusion

Gas taxes vary significantly from state to state in the United States. In 2023, the states with the highest gas taxes are California, Connecticut, Washington, Hawaii, and New York. The states with the lowest gas taxes are Alaska, Florida, South Carolina, Mississippi, Louisiana, Missouri. It is important to be aware of the gas tax rate in your state before filling up your tank.