You pay two gas taxes at the pump: federal and state. The federal rate is identical for every driver in the US — 18.4 cents per gallon, unchanged since 1993. State rates are where things get interesting. They range from 8.95 cents in Alaska to over 68 cents (with fees) in California and Pennsylvania.
The top five highest
As of early 2026, the five highest-tax states are: California ($0.68, with environmental fees), Pennsylvania ($0.58), Illinois ($0.45), Washington ($0.49, with fees), and Indiana ($0.43). Together these states account for about a third of US gasoline consumption, which is one reason the nominal "national average" obscures so much variation.
These are also generally higher-income, more urban states with substantial infrastructure spending programs — a recurring feature of the high-tax list.
The bottom five lowest
Alaska ($0.0895), Hawaii ($0.18 plus local), Mississippi ($0.18), New Mexico ($0.19), and Arizona ($0.19) anchor the low end. Alaska is the outlier — a small tax base, significant energy-industry revenue, and a political tradition of keeping the gas tax low have left the rate essentially untouched for 40 years.
Texas and Louisiana, despite being major oil producers, are middle-of-the-pack on tax ($0.20 and $0.20, respectively). Oil production doesn't lower gas taxes — it's a separate political conversation.
| State | Tax + fees | vs. US avg ($0.32) |
|---|---|---|
| California | $0.68 | +$0.36 |
| Pennsylvania | $0.58 | +$0.26 |
| Washington | $0.49 | +$0.17 |
| Illinois | $0.45 | +$0.13 |
| Indiana | $0.43 | +$0.11 |
| Lowest | ||
| Arizona | $0.19 | −$0.13 |
| New Mexico | $0.19 | −$0.13 |
| Mississippi | $0.18 | −$0.14 |
| Hawaii (state only) | $0.18 | −$0.14 |
| Alaska | $0.09 | −$0.23 |
Where the money goes
Nearly all state gas taxes are dedicated funds — by state constitution or long-standing statute — to road and bridge infrastructure. In most states, gas tax revenue cannot legally be redirected to general funds or non-transportation spending.
This is one reason gas tax changes are politically hard: raising the tax requires legislators to justify it as "road repair," and cutting the tax means finding another source for road funding, usually bonded debt.
Cross-border arbitrage
Drivers within 20 miles of a state line with a big tax gap predictably cross for fuel. This is visible in retail data: the New Jersey-Pennsylvania border, the Illinois-Indiana border, and the Washington-Oregon border all show measurable price discontinuities with retail volumes skewed to the cheaper side.
For the average consumer with a 30-minute round trip, crossing a state line makes sense for a tank only when the per-gallon gap exceeds about $0.30. Below that, you've spent more fuel driving than you saved.
The takeaway
Gas taxes are the single biggest state-level difference in what you pay at the pump. They're baked into infrastructure spending, hard to change, and entirely legible — the EIA publishes current rates quarterly. If you're trying to understand why your in-laws pay so much less when you visit, start with the tax line before blaming the gas station.
