7 States That Just Raised Their Gas Taxes

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Man driver in car upset or worried about gas prices or insurance
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Just weeks ago, the national average gas price topped $5 per gallon.

While it’s thankfully moving in a downward direction for the moment, it’s still an unexpectedly heavy burden on the budgets of many. And a handful of states just made it worse.

As the new fiscal year kicked off on July 1 for nearly all states, several of them raised their taxes on gasoline, either automatically or through recent legislation.

Here’s a look at which states are affected and what their gas taxes are now, rounded to the nearest cent.

California

Highway traffic in Los Angeles, California
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Gas tax increase: 3 cents per gallon

New current gas tax: 54 cents per gallon

California, which has one of the nation’s highest gas taxes, according to NBC Bay Area, pushed it even higher on July 1 as scheduled: from 51.1 cents per gallon to 53.9 cents per gallon.

On the bright side, Californians are expected to receive “inflation payments” of up to $1,050 this fall, which helps temporarily offset some of that.

South Carolina

cars in South Carolina
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Gas tax increase: 2 cents per gallon

New current gas tax: 28 cents per gallon

This is the final automatic increase stemming from 2017 legislation. The state has taken in about $900 million in taxes since the law passed. The money is being used to fund $2 billion in road and bridge work across South Carolina.

Virginia

West Virginia
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Gas tax increase: 2 cents per gallon

New current gas tax: 28 cents per gallon

Virginia passed legislation in 2020 that triggers automatic gas tax increases tied to the Consumer Price Index for All Urban Consumers, which is one of the federal government’s measures of inflation. The new gas tax reflects a more than 7% jump in the price of consumer goods.

Missouri

Kansas City Missouri traffic highways
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Gas tax increase: 3 cents per gallon

New current gas tax: 22 cents per gallon

Last fall, Missouri passed a bill that will increase the state’s gas tax 2.5 cents each year through 2025. However, Missourians should keep their gas receipts — the law allows you to file for a refund, according to the Missouri Department of Revenue.

Illinois

Chicago, Illinois
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Gas tax increase (county share only): 6.22% in five counties (Lake, Kane, McHenry, Will, DuPage)

New current gas tax (county share only): 4 to 9 cents per gallon in those five counties

Illinois’ County Motor Fuel Tax Law allows certain counties to raise their gas taxes based on the annual increase in the Consumer Price Index for All Urban Consumers, which is one of the federal government’s measures of inflation. This fiscal year’s 6.22% increase resulted in the following county gas tax rates:

  • 4.2 cents per gallon in Lake County
  • 4.4 cents in Kane, McHenry and Will Counties
  • 8.5 cents in DuPage County

The county fuel tax is in addition to the state fuel tax, which was doubled in 2019 and is currently set at 39.2 cents per gallon. That was slated to rise 2.2 cents on July 1, but the increase has been deferred for six months.

Indiana

Fort Wayne Indiana
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Gas tax increase: 6 cents per gallon

New current gas tax: 62 cents per gallon

Indiana has two gas taxes. One is a 7% gasoline use tax that is calculated monthly and was set at 29.1 cents in July — a 5.1 cents increase from June. The other is a road projects tax which automatically adjusts for inflation each year, and that tax increased 1 cent in July to 33 cents per gallon.

Between the two, the people of Indiana are paying 62.1 cents in state gasoline taxes as of July.

Maryland

Baltimore, Maryland
sean-pavone / Shutterstock.com

Gas tax increase: 7 cents per gallon

New current gas tax: 43 cents per gallon

An attempt to repeal this year’s automatic annual gas tax increase failed in a legislative committee, according to The Southern Maryland Chronicle, but state residents recently enjoyed a brief reprieve in the form of a monthlong gas tax holiday.

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