State taxes average about 33 cents per gallon, though they vary widely by state.
The price drivers pay at the gas pump — averaging $3.45 in June — includes a federal tax of 18.4 cents per gallon, plus state taxes that vary widely.
In seven places, those state taxes are set to increase at the height of the summer driving season. The list below shows the total state taxes for those spots, effective July 1:, the state’s excise tax on gas will rise from 57.9 cents per gallon to 59.6 cents per gallon, according to the California Department of Tax and Fee Administration. When other state taxes and fees are taken into account, the state tax on a gallon of fuel in California will rise from about 68 cents to about 70 cents.
On top of the federal tax on gasoline of 18.4 cents per gallon, most states levy multiple taxes and fees on a gallon of gas, including some combination of excise taxes , sales taxes, environmental taxes and inspection fees. Those costs add up to an average of 32.6 cents per gallon in state taxes, according to a NerdWallet analysis of U.S. Energy Information Administration data. Combined with the federal tax, that’s 51 cents, on average, added to the cost of every gallon of gas.
But state tax rates vary widely. California’s rate and Illinois’ rate are highest, followed by Pennsylvania’s . Alaska has, by far, the lowest state tax , followed by Mississippi and Hawaii ., a proxy for inflation calculated by the U.S. Bureau of Labor Statistics. That means taxes may rise with the annualIf you purchase a product or register for an account through a link on our site, we may receive compensation.
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