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.

bright colored gas pump
(Image credit: Getty Images)

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.

 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. 

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