How Much of a Driver’s Monthly Income is Spent on Gas? [State-by-State Study]

New commuting habits and gas tax holidays look to ease the burden of rising gas prices across the country. But many Americans have to rely on their vehicle as their primary mode of transportation, and planning for summer road trip expenses is looking bleak.

By finding how much of their monthly income the average U.S. driver spends on gas, we were able to see which areas nationwide have the largest fuel burdens and which offer the best value. FinanceBuzz also found the states where drivers pay the highest and lowest percentage of their monthly income into their gas tank.

Key findings

• The average U.S. driver spends 2.57% of their monthly income on their gas tank.
• 6 of the 10 states that spend the highest percentage of their monthly income on gas are in the South. Alabama and Mississippi residents pay the most, though Wyoming residents follow closely behind.
• Drivers in Washington, D.C., New York, and Alaska pay the lowest percentage of their monthly income into their gas tanks. Drivers in Washington, D.C. spend just 1.00% of their income on gas.

10 states where drivers spend the highest percentage of their income on gas

The Southern region of the U.S. accounts for 6 of the top 10 states where drivers spend the highest percentage of their income on gas. These states are Alabama, Mississippi, North Carolina, Arkansas, Florida, and South Carolina.

Overall, Alabama drivers pay the most while drivers in neighboring Mississippi are second. The average Alabama resident travels 1,096 miles per month while the average Mississippian travels 1,073 miles monthly. Those totals are the second- and third-most in the country, trailing only Wyoming (1,227 miles per month).

It’s worth noting that Alabama also has one of the ten lowest monthly incomes ($3,652). Mississippi ($3,354), Arkansas ($3,421), and New Mexico ($3,519) residents have the three lowest monthly incomes in the U.S.

9 states and 1 district where drivers spend the lowest percentage of their income on gas

Overall, the average U.S. driver spends 2.57% of their monthly income on their gas tank. Drivers in these 10 states are all below this national average.

Drivers in Washington, D.C. and New York put the lowest percentage of their monthly income toward gas, and are the only places where drivers spend less than 2% of their monthly income at the pump. Drivers in Washington, D.C. spend just 1.00% of their income on gas. To put this in perspective, Alabama drivers spend six times more of their monthly income on gas than drivers in Washington, D.C.

Washington, D.C. and New York drivers travel some of the fewest miles per month on average. The average miles traveled per person, per month in D.C. is 335, while New York is 400 miles. Robust public transportation options could contribute to those low highway mile totals.

Percentage of monthly income the average person spends on gas in every state and the District of Columbia

Wyoming, Mississippi, and Alabama are the only states with over 1,000 miles traveled per person, per month. The average miles traveled per person, per month in the U.S. is 711 miles. Regardless of the specific state, people are driving significant miles, and gas costs are a nationwide issue.

In an effort to reduce gas prices, some states have implemented “gas tax holidays,” which typically involve suspending taxes on gas across the state for a certain period. Maryland, Georgia, and Connecticut were the first states to suspend fuel taxes, but other states are also considering taking action.

For context, Maryland suspended a whopping 36.1-cents-per-gallon tax, which could offer considerable savings for drivers.

Tips to help you save money as a driver

Plans for gas rebates or stimulus programs to help address soaring costs are underway on both the federal and state levels. California, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maine, Minnesota, New Jersey, New Mexico, New York, Pennsylvania, and Virginia have approved or have pending plans for rebate or stimulus payments.

But whether you receive a gas rebate or stimulus check, here are several ways to save money as a driver:

• Save on car insurance: To save money on car insurance, do your research and shop around. You could find a deal if you consider the best car insurance companies.
• Utilize credit cards: Many credit cards offer valuable rewards on your purchases, including at gas stations. Reward yourself when you fill up your tank when you use the best gas credit cards.
• Use helpful apps: Certain apps, including GasBuddy, could help you save money on gas or in other ways. Check out these budgeting apps to help you save some cash.

Methodology

Financebuzz used the most recent data from the U.S. Department of Transportation (February 2022) to find the total number of road miles traveled by all people in each state. We then divided that number by each state's population, using the most recent data from the U.S. Census Bureau to find the average number of vehicle miles traveled per person in a month by state. We used AAA data collected on 5/16/22 to find the average cost for a gallon of regular gasoline in each state. We used the most recent data from the Bureau of Transportation Statistics (2020) to determine the average fuel efficiency of all light-duty vehicles (i.e. passenger vehicles such as cars, trucks, and SUVs).

We found the median annual income for full-time, year-round workers in every state using the most recent data from the U.S. Census Bureau, then divided that by 12 to find the median monthly income. Each state's average vehicle miles traveled was then divided by the average fuel economy for light-duty vehicles (22.9 mpg) to determine the number of gallons of gasoline needed to travel that distance. That number was then multiplied by the average cost for a gallon of gas to determine how much the average person spends per month to travel the average number of vehicle miles traveled in each state for both cars and trucks. The average monthly cost for gas in each state was then divided by the median monthly income per state to determine the percentage of income that people spend on gas in each state.

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Author Details

Ben Walker, CEPF, CFEI®

Ben Walker, CEPF, CFEI®, is credit cards specialist. For over a decade, he's leveraged credit card points and miles to travel the world. His expertise extends to other areas of personal finance — including loans, insurance, investing, and real estate — and you can find his insights on The Washington Post, Debt.com, Yahoo! Finance, and Fox Business.