The taxes on your gallon of gas
Energy Information Administration data shows that the average national price per gallon of gas rose from $3.02 on March 2 to $4.12 on April 27 as the global economy dealt with the limited crude oil supply passing through the Strait of Hormuz. Yet prices vary broadly by state. Why? Several reasons, including a state’s proximity to an oil supply, competition among gas stations, and supply disruptions. But other factors are more directly in the hands of regional governments, namely, taxes.
- State governments levy excise taxes (excise taxes are typically applied per unit of a good or service, in this case, per gallon). In January, the highest gas excise taxes were in California (61 cents/gallon), Pennsylvania (58), Washington (55), and Michigan (52). Alaska and New York charged 8 cents per gallon, the lowest in the nation.
- Several states have additional taxes and fees, including for storage, inspection, or environmental cleanup. Plus, many apply general sales taxes to purchases, including gas. New Jersey added the most (39 cents/gallon), followed by Vermont (19 cents/gallon), Florida, Indiana, and Illinois (all at 18 cents/gallon).
- With all these taxes combined, California had the highest state tax (71 cents/gallon), while Alaska had the lowest (9 cents/gallon).
- Congress has raised the federal gasoline tax only a few times, most recently to 18.4 cents per gallon in 1993.
- Diesel has a flat federal tax of 24.4 cents/gallon, plus state excise and sales taxes, and any applicable additional fees. In January 2026, the national average for diesel taxes was 60 cents per gallon, compared to 52 cents for regular.
How much money does the US federal government collect?
Federal revenue has increased 2.5 times from FY 1980 to 2025 (adjusted for inflation), while the nation’s population increased about 1.5 times. That means the government is collecting more revenue per person, on average, than it used to. Let’s look at what the government collects and how that’s changed.
- Government revenue is the total amount of money received from individual and corporate taxes, as well as other sources. In fiscal year 2025, the federal government collected $5.26 trillion, or about $15,400 per person in the US. Of course, the amount collected per person varies based on their income and other factors.
- Revenues were up 3.6% from the $5.08 trillion collected in FY 2024 after adjusting for inflation. Higher revenue from individual income taxes drove this growth from the year prior, and could have been due to a variety of factors, including income growth or the number of taxpayers.
- For comparison, federal revenue was up 19.9% from the $4.39 trillion collected in FY 2019, just before the COVID-19 pandemic.
- The government shares preliminary revenue data on what it’s collected so far this fiscal year, which began on October 1, 2025. The early data shows it has brought in $1.25 trillion in individual income taxes and $870.5 billion in payroll taxes in the first six months of FY 2026.
- The government’s fiscal year 2026 budget deficitwas about $954 billion as of this past April.
- For a deeper dive into how the government collects revenue, watch this videofeaturing USAFacts Founder Steve Ballmer.
Data behind the news
The One Big Beautiful Bill Actchanged funding and work requirements for the Supplemental Nutrition Assistance Program, the federal program that provides food assistance to low-income individuals. Americans in dozens of states are starting to see changes to SNAP eligibility and participation take effect.
President Trump met with Chinese President Xi Jinping last week. Learn more about the trade relationship between China and the US.
Have you been taking the weekly fact quiz like it’s your J-O-B? Then clock in here.
One last fact
Twenty-four states and Washington, DC, have legalized recreational marijuana. Ohio is the latest state to do so, with voters approving a ballot measure in November 2023. Forty states and Washington, DC, have legalized some form of medical marijuana.
