As gas prices continue to fluctuate across the country, it’s important to understand the impact of state-imposed taxes on what we pay at the pump. As of 2024, some states in the US have notably higher gas taxes, directly affecting drivers’ wallets.
Using the official data of the World Population Review, we’ve compiled a list of states in the US with the highest gas tax rates. This will also shed some light on the reasons behind these rates and how they influence everyday travel and expenses for Americans.
Georgia
- Gas Tax Rate: $0.31
Georgia’s gas tax rates are one of the highest in the country. This tax rate helps fund the state’s road maintenance, infrastructure projects, and public transportation systems. The tax ensures that Georgia’s highways and roads are kept in good condition, which is crucial for the safety and efficiency of travel. However, this higher tax rate can make everyday travel more expensive for drivers, especially those who commute long distances or rely heavily on their vehicles.
Montana
- Gas Tax Rate: $0.33
Despite its relatively high tax rate, Montana still faces challenges in covering all transportation-related costs, which is a common issue among states with high gas taxes. This tax is crucial for ensuring safe and efficient travel for residents and visitors alike, highlighting the broader importance of such taxes in supporting state infrastructure.
Rhode Island
- Gas Tax Rate: $0.34
Rhode Island has one of the highest gas taxes in the US. This high tax rate helps fund state transportation projects, such as road maintenance and public transit improvements. As per the GoLocalProv news team, Rhode Island’s average gas price is 5 times higher than the national average. It means that drivers in the state pay more at the pump, which can add up quickly, especially for those who commute long distances or rely heavily on their cars for daily activities.
Utah
- Gas Tax Rate: $0.36
Utah’s gas tax contributes significantly to the state’s infrastructure funding, helping to maintain and improve roads and highways. However, as per the news report, the Utah department of transportation will lower its original gas tax prices and will impose a new EV (Electric Vehicle) charging tax for state residents. This decision has been made because the gas tax revenue is declining due to the growing popularity of electric vehicles in the state.
West Virginia
- Gas Tax Rate: $0.37
The state of West Virginia has increased this rate to fund important transportation projects, such as road repairs and improvements to highways and bridges. These projects are crucial for maintaining safe and efficient travel for residents and visitors. As vehicles become more fuel-efficient, the state collects less revenue from gas taxes, which has led to raising the gas tax rates.
North Carolina
- Gas Tax Rate: $0.40
In North Carolina, the excise tax on gasoline is set at a very high rate for residents. This high tax rate contributes significantly to the overall cost of fuel in the state. The tax revenue collected is used to fund transportation infrastructure projects, such as road maintenance and construction. This helps ensure that North Carolina’s roads are kept in good condition, but it also means higher costs for drivers at the pump.
Maryland
- Gas Tax Rates: $0.42
Maryland’s high gasoline tax rate places it among the states with highest gas taxes in the US. In recent years, Maryland has seen debates and adjustments to its gas tax policy. The prices of these taxes have increased compared to the last two years. The rate has increased by 30% due to inflation and surging fuel prices all over the state. These prices have seriously affected the daily commuting costs for residents.
Illinois
- Gas Tax Rate: $0.42
Illinois stands out with one of the highest gas tax rates in the US. This significant tax has been a point of discussion among drivers and lawmakers alike. Many residents feel the pinch at the pump, especially as these rates have increased over the past few years. According to the Illinois Department of Revenue these prices have significantly increased by 3.5% from last year’s comparison.
New Jersey
- Gas Tax Rate: $0.42
New Jersey is known for having one of the highest gas tax rates in the United States. This high rate has been a point of discussion and concern among drivers and policymakers alike. However, as per the New Jersey Monitor 2024 report, lawmakers of the state want to increase the gas tax collection by 18% over the next few years. They will also create a new tax on electric vehicles registration. The high gas tax aims to fund infrastructure projects, but it also means drivers in the state pay significantly more at the pump.
Washington
- Gas Tax Rate: $0.49
Washington ranks among the states with the steepest gas taxes in the nation. The state of Washington collects $6,664 in state and local tax collections per capita. This high rate significantly impacts drivers, especially those who commute long distances. News from the spokesman explains that this increasing high tax rates on gas is caused by the state’s Climate Commitment Act imposed since 2021.
California
- Gas Tax Rate: $0.54
California State is known for their higher gasoline tax rates in the US. This high rate is part of the state’s efforts to fund road repairs, public transit, and infrastructure projects like airports and waterways. California enforces a tax on motor vehicle fuel and diesel for every gallon that enters or leaves a refinery or terminal within the state. These fuel taxes will generate an estimated revenue of $1.4 billion for the California State government.
Pennsylvania
- Gas Tax Rate: $0.61
Pennsylvania imposes the steepest gas taxes in the entire United States. This high tax rate has been a subject of discussion and debate in recent years. These high tax prices have been impacting both residents and businesses that rely on transportation. Hence, the Pennsylvania Department of Revenue publicly announced that the gasoline tax prices will decrease to the amount of 57.6 cents ($0.576) by this year.