Average state tax rates for retail gasoline and diesel fuel nearly flat since July 2024

February 22, 2025 Stu Turley Downstream, EIA News, Gasoline, Tax, US Energy News
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 In-brief analysis

February 21, 2025

Average state tax rates for retail gasoline and diesel fuel nearly flat since July 2024

state taxes on motor gasoline

Data source: U.S. Energy Information Administration, federal and state motor fuel taxes

As of January 1, 2025, state taxes and fees on gasoline and diesel fuel averaged $0.33 per gallon (gal) of gasoline and $0.35/gal of diesel fuel, according to our table on federal and state motor fuel taxes. Since July 2024, average taxes on both gasoline and diesel have remained nearly flat, increasing less than half of one cent each.

Although national average tax rates were nearly flat, changes occurred in several states. Gasoline taxes decreased in six states, with Indiana’s decrease of $0.036 to $0.525/gal being the largest. Gasoline taxes increased in eight states, with Minnesota having the largest increase of $0.031 to $0.319/gal.

change in state gasoline tax rate between Jul 2024 and Jan 2025

Data source: U.S. Energy Information Administration, federal and state motor fuel taxes
Note: Tax rates in states not shown did not change.

Diesel fuel taxes decreased in four states, with Michigan’s tax decrease of $0.036 being the largest. Diesel taxes increased in nine states, with Connecticut having the largest increase of $0.032 to $0.524/gal.

change in state diesel fuel tax rate between Jul 2024 and Jan 2025

Data source: U.S. Energy Information Administration, federal and state motor fuel taxes
Note: Tax rates in states not shown did not change.

Federal tax rates remain at $0.184/gal for gasoline and $0.244/gal for diesel, which includes excise tax and an additional $0.001/gal from the Leaking Underground Storage Tank (LUST) Fund.

The same three states had the lowest gasoline and diesel taxes: Alaska (both at $0.0895/gal), Mississippi (both at $0.1840/gal), and Hawaii (both at $0.1850/gal). The three states with the highest gasoline taxes were California ($0.6982/gal), Illinois ($0.6610/gal), and Pennsylvania ($0.5870/gal). Those same three states also had the highest diesel taxes: California ($0.9212/gal), Pennsylvania ($0.7410/gal), and Illinois ($0.7360/gal).

We update information about federal and state motor fuel taxes in the United States on a semiannual basis, based on tax rates at the beginning of January and July each year.

Principal contributor: Marcela Bradbury

About Stu Turley 4815 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.

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