10 States With the Lowest Gas Taxes
Getting gas in these states with the lowest gas taxes can save you a lot of money on your next road trip.


You might not think much about gas tax since it's included in the price you see at the pump, but the tax on gas can significantly impact what you pay. Sometimes, gas taxes can increase your purchase price by $0.50 or more per gallon, but these states have the lowest gas taxes in the U.S.
If you're taking a road trip, 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.
Disclaimer
[Gas and diesel tax prices are based on data from the Federation of Tax Administrators and the Tax Policy Center. This data reflects gas prices as of January 2023.]

North Dakota
Gas tax total: $0.23 per gallon of gasoline
North Dakota’s gas tax ties with Delaware. Both states tax gasoline at $0.23 per gallon. And the tax on diesel is $0.23 in North Dakota, too.
Tax rates jump to $0.30 once you get to South Dakota. Gas taxes in Minnesota and Montana (other bordering states) are higher than in North Dakota, too. So, it’s a good idea to fill up in the Peace Garden State if you’re passing through.

Delaware
Gas tax total: $0.23 per gallon of gasoline
Delaware’s gas tax is $0.23, but the state taxes diesel at $0.22. That’s good news for drivers. Gas taxes become significantly higher when you cross state lines.
You won’t spend any of your money on taxes when you grab snacks for the road. Delaware is one of the states with no sales tax. Of course, sales taxes are higher in bordering states, too.

Louisiana
Gas tax total: $0.201 per gallon of gasoline
Louisiana's excise tax on gasoline is just $0.20. The state charges a very modest $0.001 in extra taxes and fees, earning it the state with the 8th cheapest gas taxes. You can fill up your diesel-powered vehicle at the same tax rate of $0.201, 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.

Texas
Gas tax total: $0.20 per gallon of gasoline
Texas treats its residents pretty great 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 second largest state in the U.S. can feel less costly.

Oklahoma
Gas tax total: $0.19 per gallon of gasoline
In Oklahoma, the gas tax ties with Arizona at $0.19 per gallon. With a gasoline tax of $0.19 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 $0.24. 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: $0.19 per gallon of gasoline
Arizona has a cheaper excise tax on gas than Oklahoma does, but the additional $0.01 Arizona adds in additional taxes and fees causes the state to tie with Oklahoma. Diesel fuel taxes become a bit rough in Arizona, though. You can expect to pay a $0.27 total diesel fuel tax when you fill up in this state.

New Mexico
Gas tax total: 0.189 per gallon of gasoline
Visiting New Mexico can offer a nice gas tax break. The state imposes a $0.17 excise tax on gasoline. Though Mexico charges $0.019 in 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 $0.019 in additional fees, diesel tax totals $0.229. Still, that is less expensive than most states in the country.

Mississippi
Gas tax total: $0.184 per gallon of gasoline
If you can, stop for a fill up in Mississippi. Gas taxes are still below $0.20, and you can enjoy the same $0.184 tax rate on diesel fuel, too. Gas taxes become more expensive in the bordering states of Tennessee and Alabama.
But Mississippi 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%.

Hawaii
Gas tax total: $0.16 per gallon of gasoline
Hawaii’s gas tax is nearly double Alaska’s, but it is still very reasonable at a mere $0.16. 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.

Alaska
Gas tax total: $0.09 per gallon of gasoline
Alaska takes the win for states with the cheapest gas tax. At only $0.09 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.

Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.
-
-
Louisiana Tax Relief Granted After Seawater Intrusion
Tax Relief The IRS has granted Louisiana tax relief to affected taxpayers following seawater intrusion of the Mississippi River.
By Katelyn Washington Published
-
A 10-Year Checklist For Retirement Planning
This checklist for retirement planning will help you get in shape 10 years out.
By David Rodeck Published
-
10 States With the Lowest Sales Tax
Don't rush to a state with low sales tax if your goal is to save money.
By Katelyn Washington Published
-
How 12 Types of Retirement Income Get Taxed
Retirement Taxes Don't forget about taxes on your pensions and other retirement income while planning for your golden years.
By Joy Taylor Last updated
-
10 Least Tax-Friendly States for Middle-Class Families
state tax It can cost your family thousands of dollars each year if you end up in one of the worst states for taxes after a move.
By David Muhlbaum Published
-
Low-Tax States for 'Middle-Class' Families
State Taxes Here are the best states for families with middle incomes (due to low tax burdens).
By Katelyn Washington Last updated
-
15 States That Tax Military Retirement Pay (and Other States That Don't)
retirement Taxes on military retirement pay vary from state-to-state. How generous is your state when it comes to helping retired veterans at tax time?
By Sandra Block Published
-
5 Tax Deadlines for October 17
tax deadline Many taxpayers know that October 17 is the due date for filing an extended tax return, but there are other tax deadlines on this date.
By William Neilson Last updated
-
States With No State Sales Tax
Tax Breaks A handful of states don't impose a sales tax, but that doesn't necessarily make them the best states for low taxes.
By David Muhlbaum Last updated
-
Penalties for Filing Your Tax Return Late
tax deadline Stiff penalties await those who didn't file their return (or pay any tax owed) by the tax filing deadline.
By Rocky Mengle Last updated