A Tax Foundation's analysis revealed a list of states and their fuel taxes
California, Illinois, and Pennsylvania lead as the states with the highest diesel and gasoline taxes, according to a new fuel analysis by the Tax Foundation. The study, published on August 6, evaluated state fuel tax rates as of January 2024.
In 2024, diesel tax rates, which have increased similarly to gasoline rates, are not offsetting the rise in road construction and maintenance costs. This suggests that a significant change in current policies might be necessary. States impose fuel taxes in various ways, such as sales taxes, excise taxes per gallon, and other wholesale or retail taxes, which are generally passed on to consumers. These additional taxes and fees contribute to the price consumers pay at the pump.

California: the state with the highest fuel tax
The Tax Foundation’s analysis revealed a list of states and their fuel taxes, highlighting California as the state with the highest fuel taxes in the U.S.. According to the report, California adds 68.1 cents to the price of a gallon of gasoline and 96.3 cents to the price of a gallon of diesel.
The report indicates that California leads in fuel taxes, with an additional impact of approximately 12 cents per gallon due to the Low Carbon Fuel Standard and 27 cents from the cap-and-trade program. These rates significantly exceed the EIA’s average state tax rates, which are 32.44 cents per gallon for gasoline and 34.74 cents for diesel.
The Tax Foundation reported that Alaska, Mississippi, and Hawaii have the lowest per-gallon taxes for both gasoline and diesel. However, these figures do not account for the impact of environmental policies such as low carbon fuel standards and emission trading programs, which increase prices in states like California, Washington, and some Northeastern states.

States with the highest fuel taxes in the U.S.
- California – $0.963
- Pennsylvania – $0.741
- Illinois – $0.740
- Indiana – $0.580
- Michigan – $0.535
- Washington – $0.528
- New Jersey – $0.494
- Connecticut – $0.492
- Maryland – $0.479
- Ohio – $0.470
The foundation noted that calculating the exact impact of these carbon taxes is complex due to varied estimates. For example, environmental agencies often report lower impacts than other economic analyses, and prices can fluctuate due to the variability in programs like cap-and-trade.

Nevada’s Runaway Ramps Save Lives
Runaway ramps on highways help stop vehicles experiencing brake failure, saving lives on the road.

California Highway Patrol Inspections: What They Check on Commercial Trucks and How to Prepare
Learn what the California Highway Patrol checks on commercial trucks in California, including brakes, tires, documents, hours of service, and safety.

Indiana, the RV Capital of the World: The Business Behind America’s RV Industry
Indiana accounts for the vast majority of RV manufacturing in the United States. But behind the factories is a lesser-known business: delivering brand-new recreational vehicles to dealerships across the country. Who are the drivers making these trips, how does the delivery business work, and when is a commercial driver’s license (CDL) required?

Texas Warns of Flooded Roads as El Niño Approaches
The Texas Department of Transportation (TxDOT) is warning drivers about hidden dangers beneath floodwaters, penalties for ignoring road closures, and precautions truckers should take ahead of a potentially wetter and stormier 2026–2027 winter.

The United States is growing, but sustaining that growth is becoming increasingly difficult
The country continues its economic expansion, but debt, interest rates, and inflation are driving up the cost of financing for businesses, households, and even the government itself.

USDOT Announces More Than $1.6 Billion to Rebuild Damaged Infrastructure
The United States will allocate more than $1.6 billion to repair roads, bridges, and transportation infrastructure damaged by hurricanes and floods.
