Ten States With the Lowest Gas Tax in 2025
Getting gas in these states can save you a lot of money on your next summer road trip.


Katelyn Washington
You might not think much about gas tax since it's included in the price you see at the pump, but the fuel tax can significantly impact what you pay.
Sometimes, excise taxes on gasoline can increase the amount you pay by as much as 69.82 cents in a state like California to as little as 8.95 cents per gallon in Alaska. Luckily, unlike the Golden State, which is among the states with the highest gas taxes in the country, the states featured on this list will give your wallet some relief.
If you're taking a road trip to visit family or friends this summer, stopping to fill up in one of these states can save you money. You can visit more attractions and have more fun on your trip with all the money you save on gas.
Some states announced some major changes in 2025, with some from our list reducing taxes as of January 1.
Disclaimer
This ranking only accounts for excise tax rates. Sales taxes are not included. Additionally, states might increase or decrease tax rates during 2025, and some states might also offer gas tax holidays this year.
Methodology:
The data used to calculate the lowest gasoline tax rates by state is provided by the U.S. Energy Information Administration, which updates data twice a year in January and July. The average tax rates on gasoline and diesel fuel have remained nearly flat. Though the national state and tax fees on fuel averaged 33 cents per gallon for gasoline and 35 cents per gallon (cpg) for diesel fuel, all of the states featured on this list carry much lower prices.
2025 changes in state gas and diesel fuel tax rates
Although the national average tax rates were nearly flat last year, there were some notable changes for gas and diesel fuel tax rates in several states.
It’s worth noting that although Indiana didn’t make our list, the state registered the largest decrease in gas taxes this year, declining from 0.0368 cpg to just 0.525 cpg between July 2024 and January 2025. Gasoline taxes also decreased in five other states, including Michigan, Illinois, Vermont, New York, and North Carolina.
Additionally, diesel fuel taxes decreased in four states, with Michigan’s tax decrease of 0.36 cents per gallon being the largest. Other states that aren’t featured in the list that saw diesel fuel taxes decline were Illinois, New York, and North Carolina.
With that being said, let’s dive into the states with the lowest taxes on gasoline.

North Dakota
Gas tax total: 23 cents per gallon
North Dakota has one of the cheapest gas taxes in the country, but it’s the only state on this list to charge more than 22 cents per gallon. So, the Peace Garden State takes the tenth place for the lowest gas taxes.
Some good news for diesel vehicles, all special fuels are also priced at 23 cents per gallon. Emergency medical service vehicles may be eligible for a refund on the special fuel tax.

Delaware
Gas tax total: 23 cents per gallon
In Delaware, the excise tax rate on gasoline is 23 cents per gallon. However, folks who have special fuel vehicles and require diesel can expect to pay 22 cents per gallon.
You may want to hang around the Small Wonder State and do some shopping while you visit, since Delaware is one of the five states with no sales tax.

Louisiana
Gas tax total: 20.9 cents per gallon
Louisiana's excise tax on gasoline is just 20.9 cents per gallon. You can fill up your diesel-powered vehicle at the same tax rate of 20.9 cpg, too.
Things go downhill for convenience store purchases, though. Even though Louisiana has a low statewide sales tax rate of 4.45%, localities can charge an additional 7%, according to the Tax Foundation. That’s a lot of sales tax! And, if you want a lot of snacks, you could easily spend what you saved on gas.
In case you missed it: The Bayou State has a new income tax, as it implemented a single-rate individual income tax rate of 3% on January 1, 2025. Louisiana also enacted a higher $12,500 standard deduction, indexed to inflation. Other changes include setting a single, flat rate of 5.5% for its corporate income tax structure this year. The change eliminates the three-bracket system with rates that ranged from 3.5% to 7.5%, according to the Tax Foundation.

Texas
Gas tax total: 20 cents per gallon
Texas treats its residents well when it comes to income taxes. Of course, if you’re just passing through, being a state with no income tax doesn’t help you much. However, you can pay low taxes when you fill up your vehicle. At just $0.20 per gallon of gasoline and per gallon of diesel fuel, driving across the Lone Star State can feel less costly.

Oklahoma
Gas tax total: 20 cents per gallon
With a gasoline tax of $0.20 and a diesel fuel tax to match, stopping for gas in Oklahoma just makes sense.
Gas tax jumps $0.05 per gallon in Kansas, which has a gas tax of 25 cents per gallon. It might not seem like much, but those savings can add up. So, it's a good idea to fill up in Oklahoma if you're heading north.

Arizona
Gas tax total: 19 cents per gallon
Arizona has a cheaper excise tax on gas compared to Oklahoma, at only $0.19 per gallon. Diesel fuel is taxed at the same rate for some drivers. However, the rate jumps to $0.26 for heavy vehicles.
In case you missed it: While tax season is over, some Arizona taxpayers may have run into some confusion this year. If you received an Arizona family tax rebate last year, the IRS indicates that you must report that amount on your federal income tax return. According to the tax agency, rebate payments are classified as taxable income. For more details, see Your Arizona Family Rebate is Taxable: What to Know.

New Mexico
Gas tax total: 18.8 cents per gallon
Visiting New Mexico can offer a nice gas tax break. Though Mexico charges other fees and taxes, the total gas tax still comes in at under $0.20.
Diesel truck owners aren’t quite as lucky. The excise tax on diesel fuel is $0.21, and with the same $0.0188 in additional fees, the diesel tax totals 22.88 cents per gallon. Still, that is less expensive than most states in the country.

Hawaii
Gas tax total: 18.5 cents per gallon
Hawaii’s gas tax is nearly double Alaska’s, but it is still very reasonable at a mere 18.5 cents per gallon. The bad news is that this number does not include local tax options, so you could pay a higher rate. Additionally, it’s unlikely you will drive to Hawaii since the state is surrounded by the Pacific Ocean.
Hawaii also has one of the lowest sales tax rates in the U.S., but try to avoid grocery shopping in the state since groceries are taxable.

Mississippi
Gas tax total: 18.4 cents per gallon
If you can, stop for a fill up in Mississippi. Gas taxes are still below $0.20, and you can enjoy the same 18.4-cent per gallon tax rate on diesel fuel, too. Gas taxes become more expensive in the neighboring states of Tennessee and Alabama.
But Mississippi’s tax isn’t all good. You might want to avoid making too many purchases when you stop for gas. The state has a high sales tax rate, and Mississippi even taxes groceries at the full 7%.
What’s new this year: Mississippi is one of the states that implemented a major tax change this year. Effective January 1, the Magnolia State reduced the flat individual income tax rate to 4.4%, down from 4.7% in 2024. The rate will phase down to a flat 4% by January 1, 2026.

Alaska
Gas tax total: 8.95 cents per gallon
Alaska takes the win for states with the cheapest gas tax. At less than 8 cents per gallon, you can drive further with that $20 bill, and that’s a good thing since Alaska is the largest state in the U.S. Of course, no U.S. states border Alaska, so a road trip might be out of the question unless you fly there first.
If you do find yourself in Alaska, you can also enjoy no state sales tax. However, localities can charge their own sales tax, so don’t be surprised if your convenience store purchase costs a little more than expected.
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Gabriella Cruz-Martínez is a seasoned finance journalist with 8 years of experience covering consumer debt, economic policy, and tax. Before joining Kiplinger as a tax writer, her in-depth reporting and analysis were featured in Yahoo Finance. She contributed to national dialogues on fiscal responsibility, market trends and economic reforms involving family tax credits, housing accessibility, banking regulations, student loan debt, and inflation.
Gabriella’s work has also appeared in Money Magazine, The Hyde Park Herald, and the Journal Gazette & Times-Courier. As a reporter and journalist, she enjoys writing stories that empower people from diverse backgrounds about their finances no matter their stage in life.
- Katelyn WashingtonFormer Tax Writer
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