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.

picture of car getting gas
(Image credit: Getty Images)

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.

Rivan V. Stinson
Staff Writer, Kiplinger's Personal Finance

Rivan joined Kiplinger on Leap Day 2016 as a reporter for Kiplinger's Personal Finance magazine. She's now a staff writer for the magazine and helps produce content for Kiplinger.com. A Michigan native, she graduated from the University of Michigan in 2014 and from there freelanced as a local copy editor and proofreader, and served as a research assistant to a local Detroit journalist. Her work has been featured in the Ann Arbor Observer and Sage Business Researcher.