California Tops the 2026 State Gas Tax Ranking
California levies the highest state gas tax in 2026 at 73.6 cents per gallon, while Alaska levies the lowest at under 9 cents per gallon. That is a gap of nearly 65 cents per gallon from tax policy alone, before a single drop of crude oil is priced in. The Tax Foundation’s August 2026 update shows Illinois at 70.4 cents and Indiana at 63.1 cents rounding out the top three.
2026 Gas Tax Rankings
The figures below come from the Tax Foundation’s 2026 state gas tax update, published August 2026. They include per gallon excise taxes and related state level taxes and fees, but not local taxes or environmental program costs. Tax rates change over time, so treat these as a snapshot, not a permanent ranking. Lawmakers adjust rates frequently, and several states index their taxes to inflation or fuel prices, which means the numbers drift upward even without new legislation.
The five highest state gas taxes in 2026
| State | Tax per Gallon | What Changed in 2026 |
|---|---|---|
| California | 73.6 cents | Increased 2.7 cents, remains highest in the nation |
| Illinois | 70.4 cents | Increased 4 cents, remains second |
| Indiana | 63.1 cents | Increased 8.6 cents, jumped from 5th to 3rd |
| Washington | 60.2 cents | Increased 1.1 cents, now 4th after Indiana passed it |
| Pennsylvania | 58.7 cents | Held 5th place |
The five lowest state gas taxes in 2026
| State | Tax per Gallon |
|---|---|
| Alaska | 8.95 cents |
| Hawaii | 18.5 cents |
| New Mexico | 18.9 cents |
| Oklahoma | Among the lowest in the nation |
| Texas | Among the lowest in the nation |
Do Not Forget the Federal Gas Tax
Every gallon you buy also carries the federal gas tax of 18.4 cents per gallon, unchanged since 1993. Your total per gallon tax bill is the federal tax plus your state’s tax plus any local taxes. In California, for example, the combined state and federal tax alone exceeds 92 cents per gallon before environmental program costs enter the picture.
Hidden Add-Ons That Do Not Show in the Table
The headline rates do not tell the whole story. Several states allow local fuel taxes that add real money. Hawaii’s local taxes can add up to 24 cents per gallon in Maui, and Nevada’s Washoe County drivers pay a total of 67.8 cents per gallon in state and local taxes, more than the third highest state rate. Environmental programs add more: California’s cap and trade program is estimated to add about 23 cents per gallon and its Low Carbon Fuel Standard adds an estimated 19 cents, bringing California’s total tax and regulatory burden to about $1.16 per gallon according to state figures.
Biggest Tax Changes in 2026
Indiana saw the largest jump, rising 8.6 cents per gallon as higher gas prices fed into its percentage based tax, pushing it from 5th to 3rd highest. New Jersey rose 4.2 cents to become the 7th highest. Vermont climbed from 24th to 16th after a 3.5 cent increase. On the other side, Utah cut its gas tax by 6.6 cents, dropping from 14th to 23rd. Most states adjust their rates regularly, and several index their taxes to inflation or prices, so this ranking will shift again.
How Taxes Shape Your Pump Price
Taxes are one of the four main components of every gallon’s price, alongside crude oil, refining, and distribution. Because tax rates are fixed per gallon rather than a percentage, they hit hardest when prices are low and matter least during price spikes. Diesel drivers face a similar patchwork of state taxes; see our diesel guide for fuel specific factors. Drivers in high tax states benefit most from discount strategies, so check our cheap gas guide and station finder to pay less per gallon.
What is the average state gas tax in 2026?
There is no single average that tells the full story, but most states charge between 25 and 45 cents per gallon in state level taxes, plus the 18.4 cent federal tax. The national spread runs from under 9 cents to 73.6 cents.
Which state increased its gas tax the most in 2026?
Indiana, up 8.6 cents per gallon, which moved it from the 5th to the 3rd highest gas tax in the country. Michigan and New Jersey also raised rates, while Utah was the notable state to cut.
Are local gas taxes included in these rates?
Mostly not. The Tax Foundation figures exclude many local taxes, so your actual tax burden can be higher in places like Hawaii and Nevada counties that levy significant local fuel taxes.
Do gas tax holidays actually help drivers?
Only briefly and modestly. The Tax Foundation finds that temporary gas tax suspensions do not address the underlying causes of high prices and can worsen road funding shortfalls, since gas taxes are meant to function as a user fee for roads.
Facts verified October 2026. Prices, taxes, and app terms change over time and vary by state.