State Motor Fuel Excise Tax Rates

In addition to income, severance, production, property, and other taxes, the products produced by the petroleum industry are subject to various excise taxes.  Every state imposes an excise tax on motor fuel.  Often excise tax rates within a state differ depending on the type of motor fuel being purchased--for example, gasoline may be subject to one rate while diesel is subject to a different rate.  Determining the amount of tax paid on one gallon of gasoline or diesel fuel purchased by a consumer at the pump can involve numerous factors and calculations.  The tax rate may vary depending on the whether the area where the fuel is purchased is in compliance with federal clean air standards, whether a threshold amount of revenue has been collected for the taxing jurisdiction for the fiscal year, and how much is being charged for the pre-tax price of a gallon of fuel. 

API collects motor fuel tax information for all 50 states and their localities and compiles a report and summary charts detailing changes from the previous update and calculating a nationwide average.  These documents show the average amount of excise and other taxes imposed by each state  on gasoline and diesel fuel.  The calculations include county and local taxes where applicable.  API's chart reflects a weighted average for each state, meaning that county, local or other taxes which can vary across a state's jurisdiction are averaged according to the population of the local areas subject to each particular tax rate.  Where appropriate, the weighted average also takes into consideration the typical percentages of premium, midgrade, and regular fuel purchased in each state.  In states where taxes vary depending upon the price of the motor fuel (for example, where the tax rate is set as a percentage of the sales price rather than a cents per gallon method), the state average listed on the chart is a snapshot based upon the price of fuel (as reported by AAA) on the date the chart is updated.

As of October 1, 2008, the average amount of tax imposed on a gallon of gasoline sold in the United States was 48.4 cents per gallon, down 1 cent from the July 2008 report.  For diesel fuel, the national average amount of tax was 53.6 cents per gallon, a decrease of 2.8 cents from the July 2008 report.

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To access the State Motor Fuel Excise Tax Rate Report, summary charts, or maps, please visit Motor Fuel Taxes.