Gas taxes can eat into your wallet depending on where you live and how much you might have to pay per gallon of gas that goes to taxes.
Car owners need to make money moves if they’re worried about how much a gallon of gas can cost with the added tax. You may have to find other places in your budget to save money or adjust your driving plans so your tank is full.
Check out the top 10 states that have the highest gas taxes in the country based on the Tax Foundation’s 2024 data to see if you need to worry about your car budget.
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Oregon
Tax rate per gallon: 40 cents
Oregon is one of the most expensive states when it comes to the cost of gas due to its high gas tax.
But you may want to review your tax bill if you live in the state. A gallon of gas is taxed, but Oregon is one of only five states that doesn’t have a state sales tax, which could help you save money.
North Carolina
Tax rate per gallon: 40.65 cents
You may want to fill up before you get to North Carolina to help you save money and avoid its gas tax.
States like Tennessee and South Carolina have lower gas taxes than North Carolina while Virginia, at 39.10 cents, barely makes it out of the top 10 states with the highest gas taxes.
New Jersey
Tax rate per gallon: 42.35 cents
New Jersey has unique laws that make a gallon of gas more expensive than other states.
In addition to the high tax rate, the Garden State is also the only state in the U.S. where you can’t pump your own gas as all stations are completely full-service stations.
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Maryland
Tax rate per gallon: 47.19 cents
Maryland’s gas tax fluctuates based on the inflation rate due to laws passed by the state’s legislature.
So, while the current tax rate may be high, it actually went down slightly in July compared to the tax rate a year earlier.
Michigan
Tax rate per gallon: 48 cents
Despite Michigan’s gas tax rate, the state’s cost for a gallon of gas is actually close to being in line with the national average.
The national average for a gallon of gas is around $3.20 while a gallon of gas in Michigan is around $3.25, according to AAA.
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Indiana
Tax rate per gallon: 51.7 cents
Indiana may be known for Indianapolis Motor Speedway where cars drive fast, but you might be slowing down when you factor in the taxes on a gallon of gas in the state.
But the good news is the cost for a gallon of gas in Indiana is still less than the national average with drivers paying around $3 per gallon in the Hoosier State.
Washington
Tax rate per gallon: 52.82 cents
Washington’s tax rate is one of the reasons it’s so expensive to fill up your tank if you live in the Pacific Northwest.
A gallon of gas has an average price of around $4 for one gallon of gas, a mark that only two states are above when it comes to an average gallon of gas. That makes Washington the second-most expensive state for a gallon of gas, according to AAA.
Pennsylvania
Tax rate per gallon: 58.7 cents
Pennsylvania is a big state, so it could be difficult to fill up your tank before crossing it to avoid the almost 60 cents in gas taxes.
You also may have to pay additional money for the state’s Pennsylvania Turnpike, which includes parts of several major interstates from the west to east of the state.
Illinois
Tax rate per gallon: 66.5 cents
Stock up your wallet as Illinois can be an expensive state when it comes to taxes while you’re on the road.
The state has the second-highest tax on gas in the country and you may want to be cautious if you take a road trip that goes through Illinois. It also has one of the highest state sales taxes in the country, making stopping for snacks or meals an expensive proposition.
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California
Tax rate per gallon: 68.1 cents
California’s tax rate contributes to high gas costs in the state, making it the most expensive state to get a gallon of gas.
The average price for a gallon of gas is more than $4.60 in California which is only one of two states in the U.S. — Washington is the other one — that currently has an average cost of a price of gas above $4 a gallon, according to AAA.
Bottom line
It can be hard to live in a state with a high tax rate on gas when you’re on a tight budget, but there are other ways you can save money as a car owner.
It’s a good idea to create an estimated budget before you shop and factor in costs such as gas as well as repair and maintenance. And if you currently own a vehicle, think about shopping around for the best car insurance prices to see if you can save some money with a new insurance policy.
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