10 States With the Lowest Gas Taxes
With gas prices surging, people are looking for any way to save a few bucks at the pump. Low gas taxes are a start.
Gas prices are sky high right now. Whether you're driving just a few miles to work or on a long road trip, you're feeling a lot of pain at the pump. But the state you live in (or, buy gas in) can affect the impact on your wallet when it's time to fill up, thanks to fuel taxes.
For instance, Arizona residents pay just 19 cents per gallon in state taxes on gasoline. That’s 49.15 cents per gallon less than their California neighbors. For someone who drives 12,000 miles a year in a car that averages 25 miles per gallon, for example, that’s a savings of about $235 a year.
So, if you have the option of buying gas in one state over another, here are the 10 states with the lowest gas taxes (the state with the lowest gas tax is last on the list). We also let you know how these states fare on other big tax metrics, such as sales tax. Take a look – it may save you some money during this time of high inflation.
Gasoline and diesel tax rates are from the American Petroleum Institute, as revised for changes after January 1, 2022. The average combined state and local sales tax rates are from the Tax Foundation and represent a population-weighted value meant to capture local taxes. Tobacco and vapor taxes are from individual state tax agency websites.
Delaware (tied with North Dakota for 10th)
State Fuel Tax: 23¢ per gallon of gasoline, 22¢ per gallon of diesel
Average Sales Tax: No state or local sales tax.
Tobacco Taxes:
- Cigarettes: $2.10 per pack
- Snuff: $0.92 per ounce
- All other tobacco products: 30% of the wholesale price
- Vapor products: $0.05 per ml
For details on other state taxes, see the Delaware State Tax Guide for Middle-Class Families.
North Dakota (tied with Delaware for 10th)
State Fuel Tax: 23¢ per gallon of gasoline, 23¢ per gallon of diesel
Average Sales Tax: 5% state levy. Localities can add as much as 3.5%, and the average combined rate is 6.96%, according to the Tax Foundation.
Tobacco Taxes:
- Cigarettes: $0.44 per pack
- Cigars: 28% of the wholesale price
- Chewing tobacco: $0.16 per ounce
- Snuff: $0.60 per ounce
For details on other state taxes, see the North Dakota State Tax Guide for Middle-Class Families.
Colorado
State Fuel Tax: 22¢ per gallon of gasoline, 20.5¢ per gallon of diesel. (A 2¢ per gallon road usage fee will be added to fuel sales beginning July 1, 2022. The fee will increase 1¢ per gallon each year until it reaches 8¢ per gallon. After that point, the fee will be adjusted annually for inflation.)
Average Sales Tax: 2.9% state levy. Localities can add as much as 8.3%, and the average combined rate is 7.77%, according to the Tax Foundation.
Tobacco Taxes:
- Cigarettes: $1.94 per pack; additional local taxes may also apply
- All other tobacco products: 50% of manufacturer’s list price
- Vapor products: 30% of manufacturer’s list price (increases to 35% in 2022)
For details on other state taxes, see the Colorado State Tax Guide for Middle-Class Families.
Louisiana
State Fuel Tax: 20.01¢ per gallon of gasoline, 20.01¢ per gallon of diesel
Average Sales Tax: 4.45% state levy. Localities can add as much as 7%, and the average combined rate is 9.55%, according to the Tax Foundation.
Tobacco Taxes:
- Cigarettes: $1.08 per pack
- Smokeless tobacco: 20% of manufacturer’s price
- Smoking tobacco: 33% of manufacturer’s price
- Snuff: 20% of manufacturer's price
- Cigars: 8% to 20% of manufacturer’s price
- Vapor products: $0.05 per ml
For details on other state taxes, see the Louisiana State Tax Guide for Middle-Class Families.
Oklahoma (tied with Texas for 6th)
State Fuel Tax: 20¢ per gallon of gasoline, 20¢ per gallon of diesel
Average Sales Tax: 4.5% state levy. Localities can add as much as 7%, and the average combined rate is 8.97%, according to the Tax Foundation.
Tobacco Taxes:
- Cigarettes: $2.03 per pack
- Little cigars: $0.04-$1.20 for 10
- Large cigars: $0.12 each
- Smoking tobacco: 80% of manufacturer's price
- Smokeless tobacco: 60% of manufacturer's price
For details on other state taxes, see the Oklahoma State Tax Guide for Middle-Class Families.
Texas (tied with Oklahoma for 6th)
State Fuel Tax: $20¢ per gallon of gasoline, 20¢ per gallon of diesel
Average Sales Tax: 6.25% state levy. Localities can add up to 2%, with an average combined rate of 8.2%, according to the Tax Foundation.
Tobacco Taxes:
- Cigarettes: $1.41 per pack
- Snuff and chewing tobacco: $1.22 per ounce
- Cigars: $0.01 to $0.15 per cigar, depending on weight
For details on other state taxes, see the Texas State Tax Guide for Middle-Class Families.
Missouri
State Fuel Tax: 19.92¢ per gallon of gasoline, 19.92¢ per gallon of diesel. (An additional 2.5¢ per gallon tax on gasoline and diesel fuel will take effect on July 1 of 2022, 2023, 2024, and 2025.)
Average Sales Tax: 4.225% state levy. Localities can add as much as 5.763%, and the average combined rate is 8.29%, according to the Tax Foundation.
Tobacco Taxes:
- Cigarettes: $0.17 per pack
- Other tobacco products: 10% of the wholesale price
For details on other state taxes, see the Missouri State Tax Guide for Middle-Class Families.
Arizona
State Fuel Tax: 19¢ per gallon of gasoline, 27¢ per gallon (19¢ per gallon for light vehicles like pickup trucks) of diesel
Average Sales Tax: 5.6% state levy. Localities can add as much as 5.6% to that, but the average combined levy is 8.4%, according to the Tax Foundation.
Tobacco Taxes:
- Cigarettes: $2 per pack
- Snuff, fine-cut chewing and smoking tobacco: $0.23 per ounce
- Plug or twist chewing tobacco: $0.06 per ounce
- Cigars: $0.22 to $2.20 per ten cigars
For details on other state taxes, see the Arizona State Tax Guide for Middle-Class Families.
New Mexico
State Fuel Tax: 18.88¢ per gallon of gasoline, 22.88¢ per gallon of diesel
Average Sales Tax: 5.125% state levy (5% effective July 1, 2022; 4.875% effective July 1, 2023, and then subject to reversion to 5.125% if tax revenues drop below a certain level). Localities can add as much as 4.313%, and the average combined rate is 7.84%, according to the Tax Foundation. New Mexico's tax is a gross receipts tax that covers most services.
Tobacco Taxes:
- Cigarettes: $1.66 per pack
- Other tobacco products: 12.5% of wholesale price
- Vapor products: $0.50 per cartridge for closed systems, 12.5% of wholesale price for nicotine liquid
For details on other state taxes, see the New Mexico State Tax Guide for Middle-Class Families.
Mississippi
State Fuel Tax: 18.79¢ per gallon of gasoline, 18.4¢ per gallon of diesel
Average Sales Tax: 7% state levy. Only two localities, Jackson (1%) and Tupelo (0.25%) add to that. According to the Tax Foundation, that makes for an average combined rate of 7.07%.
Tobacco Taxes:
- Cigarettes: $0.68 per pack
- Other tobacco products: 15% of the wholesale price
For details on other state taxes, see the Mississippi State Tax Guide for Middle-Class Families.
Alaska
State Fuel Tax: 15.13¢ per gallon of gasoline, 14.98¢ per gallon of diesel
Average Sales Tax: Alaska is one of five states with no state sales tax. However, localities can levy sales taxes, which can reach 7.5%. Higher rates are found in locations that lack a property tax. But, according to the Tax Foundation, the statewide average is only 1.76%.
Tobacco Taxes:
- Cigarettes: $2 per pack. Many localities add steep taxes; Juneau's is $3 per pack.
- All other tobacco products: 75% of the wholesale price
- Vapor products: No statewide tax but several localities impose one
For details on other state taxes, see the Alaska State Tax Guide for Middle-Class Families.
