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- 10 States With the Highest Gas Taxes in the Country (financebuzz.com)
Top 10 States with the Highest Gas Taxes in 2025
Gas prices are a pain point for many drivers, and state taxes play a significant role in the final cost at the pump. Here’s a look at the 10 states with the highest gas taxes in 2025:
- Oregon: 40 cents/gallon. While Oregon has a hefty gas tax, residents benefit from having no state sales tax.
- North Carolina: 40.65 cents/gallon. Drivers may want to fill up their tanks in neighboring states like Tennessee or South Carolina, which have lower gas taxes.
- New Jersey: 44.9 cents/gallon.
New Jersey’s gas tax saw two increases in 2025, adding to the already high cost. The state also uniquely requires full-service at all gas stations, further impacting price.
- Maryland: 46.10 cents/gallon. Maryland’s gas tax is tied to inflation, and despite its relatively high rate, it actually decreased slightly in July compared to the previous year.
- Michigan: 48 cents/gallon. Even with this tax rate, the average cost of gas in Michigan remains close to the national average of around $3.20.
- Washington: 52.82 cents/gallon. This high gas tax contributes to Washington having the second-highest average gas price in the nation, at around $4 per gallon.
- Indiana: 56.1 cents/gallon. While the gas tax is high, the average price per gallon remains below the national average, hovering around $3.
- Pennsylvania: 58.7 cents/gallon. With its large size, crossing Pennsylvania without refueling can be challenging, and drivers also face potential tolls on the Pennsylvania Turnpike.
- Illinois: 67.1 cents/gallon.
Illinois has the second-highest gas tax in the US. Coupled with one of the nation’s highest state sales taxes, road trips through Illinois can be costly.
- California: 70 cents/gallon. California holds the top spot for the highest gas tax, contributing to the most expensive gas prices in the country, averaging over $4.60 per gallon.
Managing High Gas Prices and Overall Finances:
High gas taxes can strain budgets, but there are ways to mitigate the impact:
- Budgeting: Factor in gas, maintenance, and repair costs when creating a budget.
- Shop for Car Insurance: Comparing insurance rates can lead to significant savings.
- Tackle Debt: Explore options like balance transfers or debt counseling to manage and reduce debt.
- Increase Income: Consider part-time work or other opportunities to supplement your income.
- Reduce Expenses: Look for savings in major expense categories like auto insurance and travel.
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- 10 States With the Highest Gas Taxes in the Country (financebuzz.com)