USA Federal Gas Tax 2026: 18.4 Cents Per Gallon — State Comparison

The federal gas tax remains at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel.

What Is the Federal Gas Tax?

The federal excise tax on gasoline is a per-gallon tax levied on gasoline and diesel fuel. It was established in 1951 and has been adjusted several times since. The current rate of 18.4 cents per gallon has remained fixed since 1993 — making it one of the longest-running unchanged taxes in US history.

Unlike income or sales taxes, the federal gas tax is a flat per-unit tax — every driver pays the same rate regardless of income or vehicle type.

Where Does the Money Go?

The federal gas tax funds the Highway Trust Fund (HTF), established in 1956 to finance the Interstate Highway System. Today, approximately 80% of federal gas tax revenue goes to the HTF, which is then distributed to:

• Federal-aid highway program — Interstate highways, bridges, and major arterials
• Transit programs — Public transportation infrastructure
• Highway safety programs — FHWA safety initiatives
• National Park roads — Roads within federal lands

The remaining 20% goes to programs including the Leaking Underground Storage Tank (LUST) trust fund.

Federal Gas Tax Rate — Current and Historical

State Gas Tax Comparison — Total Tax Per Gallon

While the federal gas tax is uniform nationwide at 18.4¢/gallon, state gas taxes vary dramatically. When combined, the total tax per gallon ranges from about 26.4¢ in Alaska to over 86.6¢ in California.

State tax rates as of April 2026 — confirm with your state's Department of Transportation for the most current rates.

How Much Tax Does the Average Driver Pay?

The average American driver travels approximately 12,000–15,000 miles per year and gets about 25 miles per gallon. This means:

• Annual gallons used: 480–600 gallons
• Federal tax paid: $88–$110 per year
• State tax paid: $13–$516 per year (depending on state)
• Total annual gas tax: $100–$626 per year

A driver in California pays roughly $415 more per year in gas taxes than a driver in Alaska, just due to state tax differences.

Electric Vehicles and Road Funding Gap

As EV adoption accelerates, a growing concern is the road funding gap. EVs don't pay federal gas tax because they don't use gasoline. This creates a challenge: EV owners use roads but don't contribute to the Highway Trust Fund through fuel taxes.

Several states have already addressed this by implementing annual EV registration fees that partially replace gas tax revenue:

• Colorado: $50/year for BEVs, $36 for PHEVs
• Virginia: $100/year registration fee
• Michigan: $135/year for BEVs
• Wyoming: $200/year for BEVs

These fees are generally considered inadequate replacements for gas tax contributions, and the federal government has not yet implemented a nationwide mileage-based user fee for EVs.

The Gas Tax and Inflation

Because the federal gas tax has not changed since 1993, its purchasing power has been significantly eroded by inflation. In 1993 dollars, 18.4¢ would be worth approximately 37–40¢ today. This means the actual road-building capacity of the Highway Trust Fund has declined substantially in real terms.

The American Society of Civil Engineers estimates that the US needs to invest an additional $2.6 trillion in infrastructure over the next decade — funding that cannot come from a stagnant gas tax alone.

Why Hasn't the Gas Tax Increased?

The federal gas tax requires Congressional action to change, and politicians on both sides of the aisle have been reluctant to raise it because:

• It's highly visible — drivers see the price at the pump
• Rising fuel costs already burden low-income households disproportionately
• There's political pressure to find "user-pays" alternatives
• A mileage-based tax (VMT fee) is seen as the more modern solution

Frequently Asked Questions

Does the federal gas tax apply to diesel?

Yes — diesel fuel has a higher federal excise tax of 24.4 cents per gallon compared to 18.4 cents for gasoline. This is because heavy trucks (diesel vehicles) cause more wear and tear on roads than passenger vehicles.

Do hybrid and plug-in hybrid vehicles still pay gas tax?

Yes — hybrid vehicles use gasoline and therefore pay the federal gas tax every time the owner fills up. Only fully electric vehicles that never use gasoline are exempt from the federal gas tax, though they may pay alternative road use fees at the state level.

Is the federal gas tax tax-deductible?

No — the federal gas tax is not deductible as a personal itemized deduction. However, if you use your vehicle for business, the business portion of your fuel costs can be deducted using either the standard mileage rate (which includes an allocation for all vehicle costs including taxes) or the actual expense method.

How is the gas tax different from state sales tax on gasoline?

The federal and state excise taxes are per-gallon flat fees, separate from state sales tax on gasoline. Some states also apply sales tax on top of the excise tax, making the total tax burden even higher. California, for example, applies both an excise tax and sales tax to gasoline.

Can I get a refund of federal gas tax?

Generally, no — there is no mechanism to claim a refund of federal gas taxes paid. The tax is built into the price of fuel at the pump. Commercial users (trucking companies, airlines) can potentially claim refunds in certain circumstances.

Conclusion

The federal gas tax of 18.4 cents per gallon is a cornerstone of America's road funding system, having remained unchanged since 1993. While modest in dollar terms, it adds up: the average driver pays $88–$110 per year in federal gas taxes. Combined with state taxes, total gas tax burdens range from $26 to $87 per gallon depending on where you live.

As the US transitions to electric and more fuel-efficient vehicles, the question of how to fund road infrastructure will only grow more pressing. For now, every gallon of gas you buy contributes to maintaining America's roads.

Disclaimer: This article is for informational purposes only. State gas tax rates change periodically. Verify current rates with your state DOT or FHWA.