Here are 10 states with the highest gas taxes

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10 States With the Highest Gas Taxes in the Country (financebuzz.com)

Filling Up? A Look at the States with the Highest Gas Taxes

Across the nation, the cost of filling your tank can vary significantly, often impacted by state-specific fuel taxes. For drivers navigating tight budgets, understanding where these taxes are highest can be crucial for managing expenses.

Here’s a breakdown of the top 10 states where gas taxes add the most to your per-gallon price:

10. Oregon

Tax rate per gallon: 40 cents

While Oregon’s gas tax is among the highest, it’s worth noting that the state is one of only five without a statewide sales tax. This could offer some financial relief in other areas for residents.

9. North Carolina

Tax rate per gallon: 40.65 cents

Travelers planning a trip through the Tar Heel State might consider filling up beforehand. North Carolina’s gas tax surpasses those of neighboring states like Tennessee, South Carolina, and Virginia.

8. New Jersey

Tax rate per gallon: 44.9 cents

New Jersey not only features a high gas tax but also stands as the sole state in the U.S. where full-service gas stations are mandatory, meaning you can’t pump your own fuel.

7. Maryland

Tax rate per gallon: 47.19 cents

Maryland’s gas tax is tied to the inflation rate, meaning it can fluctuate. While currently high, the rate has seen a slight decrease compared to the previous year.

6. Michigan

Tax rate per gallon: 48 cents

Despite its significant gas tax, the average price of a gallon of gas in Michigan often remains close to the national average. According to AAA, the state’s average of around $3.02 per gallon is slightly below the national average of approximately $3.10.

5. Indiana

Tax rate per gallon: 35 cents

While Indiana is home to the high-speed Indianapolis Motor Speedway, drivers might find themselves slowing down when considering the state’s gas tax. Even with this tax, the average cost for a gallon of gas in the Hoosier State remains below the national average, typically around $3 per gallon.

4. Washington

Tax rate per gallon: 49.4 cents

Washington’s high gas tax contributes to some of the nation’s most expensive fuel prices. With an average of about $4 per gallon, it is the second-most expensive state for gas, according to AAA, with only one other state exceeding this mark.

3. Pennsylvania

Tax rate per gallon: 57.6 cents

With a gas tax nearing 60 cents per gallon, Pennsylvania presents a challenge for drivers hoping to avoid high fuel costs by filling up elsewhere. Additionally, the state’s Pennsylvania Turnpike, spanning major interstates, may incur further tolls.

2. Illinois

Tax rate per gallon: 65.6 cents

Illinois holds the unenviable position of having the second-highest gas tax in the country, making road trips through the state a potentially costly endeavor. Beyond fuel, the state also has one of the highest sales taxes, impacting the cost of other purchases.

1. California

Tax rate per gallon: 59.6 cents

California’s substantial gas tax is a key factor in its consistently high fuel prices, making it the most expensive state to purchase a gallon of gas. With an average price of about $4.37 per gallon, California is one of only two states (Washington being the other) where the average cost exceeds four dollars, according to AAA.

Bottom Line for Drivers

Navigating high gas taxes can strain any budget, but car owners have several strategies to save money. Developing a detailed budget that includes estimated fuel costs, along with repair and maintenance expenses, is a smart first step. Furthermore, regularly comparing auto insurance rates can lead to significant savings.

Smart Money Moves for Everyone:

Regardless of your current financial situation, opportunities exist to optimize your finances:

Tackle Debt: Eliminating debt is a powerful step towards financial well-being. Consider options like balance transfer credit cards or debt counseling to accelerate your progress.

Boost Income: If finances are tight, earning additional income can provide much-needed breathing room. Explore new job opportunities or consider a part-time side hustle.

Trim Expenses: While it might seem daunting, cutting expenses doesn’t have to be painful. Focus on your largest expenditures for the most significant savings.

For instance, with soaring auto insurance rates, shopping around for a new provider could drastically reduce your bill. Planning a vacation?

A suitable travel credit card might help offset costs.