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Gas Taxes by State, 2014

2 min readBy: Scott Drenkard

This week’s taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. map takes a look at state gasoline tax rates, using data from a recent report by the American Petroleum Institute. California is in 1st place with the highest rate of 52.89 cents per gallon, and is followed closely by New York (49.86 cents/gallon), Connecticut (49.3 cents/gallon), and Hawaii (48.05 cents/gallon). On the other end of the spectrum, Alaska has the lowest rate at 12.4 cents per gallon, but New Jersey (14.5 cents/gallon) and South Carolina (16.75 cents/gallon) aren’t far behind. These rates do not include the additional 18.4 cent federal excise tax.

Gas taxes are generally used to fund transportation infrastructure maintenance and new projects. While gas taxes are not a perfect user fee like tolls, they are generally more favorable than other taxes because they at least loosely connect the users of roads with the costs of enjoying them. However, some of our recent analysis shows that many states do not rely on gas taxes and tolls as much as they could, and instead fund substantial amounts of transportation from other sources like income and sales taxes.

(Click on the map to enlarge it. Reposting policy)

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About the Author

Scott Drenkard Tax Foundation

Scott Drenkard

Former Director of State Projects

Scott was the director of state projects for the Tax Foundation. His analysis of tax and spending policy has been featured hundreds of times in media outlets across the country and Scott has given legislative testimony or presented to officials in 26 states and before the U.S. Senate Finance Committee.