Gas Taxes Rise in California, Washington, Other States
Key Takeaways
Numerous states adjust the excise tax they charge at the pump annually on July 1. Washington will have the biggest jump at 6 cents per gallon.
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personal finance
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June 30, 2025
10:12 PM
NerdWallet
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Gasoline taxes increase July 1 — just ahead of summer driving season — in some of the states that already have some of the highest gas taxes (and prices) in the United States, including California, Illinois and Washington
Meanwhile, gas taxes actually decline in two states: Connecticut and Kentucky
Adjustments to state gas taxes typically happen on Jan. 1 and July 1 each year
State taxes, which pay for road and infrastructure imvements, are layered on top of federal fuel taxes, which are 18. 4 cents per gallon for gasoline and 24. 4 cents for diesel
The national average price for regular gasoline, as measured by AAA, is $3. 185 per gallon as of June 30, before the new taxes kick in
Average prices vary widely across the country, with a gallon of regular costing $1. 88 more in the most expensive state (California) than the cheapest state (Mississippi)
The national average price for diesel is $3
Before the newest round of increases, state gasoline taxes average 33. 3 cents per gallon
States where taxes rise on July 1Here are some of the states where gas taxes will rise
All gas prices cited are according to AAA and are accurate as of June 30, the day before new taxes take effect
In Washington State, the per-gallon tax on gasoline climbs 6 cents, to 55. 4 cents from 49
Beginning in 2026, the tax will rise another 2% ( a penny) each July 1 to account for inflation
Also on July 1, the tax on diesel rises 9 cents to 58. 4 cents per gallon
The tax on diesel is scheduled to rise another 3 cents in 2028; beginning that year, the tax will rise another 2% ( a penny) on both gasoline and diesel each July 1 to account for inflation
Average price for regular: $4. 433Average price for diesel: $4. 926In California, which already has the highest state gas tax in the nation, the excise tax on gasoline rises another 1. 6 cents to 61. 2 cents per gallon
This is in addition to sales and use taxes of 2. 25% plus 7. 5 cents per gallon
Diesel fuel climbs 1. 2 cents to 46. 6 cents per gallon
The California adjustments are made annually to account for inflation
Average price for regular: $4. 594Average price for diesel: $5. 110In Illinois, the fuel tax for regular gasoline rises 1. 3 cents to 48. 3 cents per gallon, and the tax for diesel fuel will also rise 1. 3 cents to 55. 8 cents per gallon
Average price for regular: $3. 470Average price for diesel: $3. 745Other states implementing changes to their state gas taxes on July 1 include: Alabama: State excise taxes on gasoline and diesel will rise by 1 cent, to 30 and 31 cents per gallon respectively
Connecticut: The state’s excise tax on diesel will decline by 3. 5 cents to 48. 9 cents per gallon
Kentucky: State excise taxes on both gasoline and diesel will decrease by 1. 4 cents, to 25 and 22 cents per gallon respectively
Minnesota: The fuel excise tax will rise 3. 3 cents to 31. 8 cents per gallon
Mississippi: The state excise tax on gasoline will increase by 3 cents to 21 cents per gallon
Missouri: The fuel tax rate will rise by 2. 5 cents per gallon
Nebraska: Fuel taxes will increase 1. 4 cents to 31. 8 cents per gallon
Rhode Island: The state excise tax on gasoline will rise 1 cent to 38 cents per gallon
Virginia: The gasoline tax will rise 0. 9 cents to 31. 7 cents per gallon, and the diesel tax will also rise 0. 9 cents to 32. 7 cents per gallon
Several states, including Georgia, Hawaii, New Jersey and Vermont, are making changes to the way they charge owners of electric vehicles for use of the roads
The authorRick VanderKnyffRick VanderKnyff is Head of Content, News at NerdWallet
He has worked previously at MSN
Com and the Los Angeles Times
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