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.

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