10 states with the lowest gasoline taxes

by Charlie Leocha on September 18, 2012

When it comes to traveling, driving by car is by far the predominate means of transportation. Studies regularly peg automobile travel at more than 80 percent, then bus and truck travel comes in at 8 percent, making the total of overall U.S. highway transportation just south of 90 percent.

Airline transportation makes up most of the rest of travel with around 10 percent, then rail and ferries flesh out the remaining less than one percent of our transportation system. [Source: Wikipedia]

These overall travel statistics frame the discussions going on in Washington and state capitals about how to deal with financing the national and state highway system. The Wall Street Journal just presented a story about options for raising revenues to cover shortfalls in highway funding.

Here are the major alternatives to the gas tax:

    • Taxing consumers by miles driven
    • More toll roads
    • Indexing the current gasoline taxes to inflation
    • Taxing oil, not gasoline
    • Taxing cars

The bottom line is that the current way we are taxing for highway usage is not meeting financial demands.

What struck me was a nationwide chart of gasoline taxes across the country. The illustration showed a disparity of taxes that range from 26.4 cents per gallon in Alaska to 67.7 cents per gallon in New York and California.

From a tourist’s point of view, traveling to the states that offer the lowest gasoline tax per gallon makes economic sense. Here are the bottom 10 states boasting the lowest per gasoline taxes with some of their top tourism sights.

50. Alaska 26.4 cents (Anchorage, Mt. McKinley, Kenai Peninsula)
49. Wyoming 32.4 cents (Yellowstone National Park)
48. New Jersey 32.9 cents (Cape May, Atlantic City)
47. South Carolina 35.2 cents (Charleston, Hilton Head)
46. Oklahoma 35.4 cents (Indian reservations, Rte. 66)
45. Missouri 35.7 cents (St. Louis, The Ozarks, Branson)
44. Mississippi 37.2 cents (Natchez Trace Parkway, Vicksburg)
43. New Mexico 37.3 cents (Santa Fe, Taos, Chaco Canyon)
42. Arizona 37.4 cents (Grand Canyon, Tombstone, Monument Valley)
41. New Hampshire 38 cents (Mt. Washington, fall foliage, Portsmouth)

Anyone who has traveled by car knows that when crossing state borders, gasoline prices can vary dramatically. It only makes sense to travel where one can enjoy the tourist sights for the best value.

Photo: Courtesy Flickr Creative Commons by goldberg

Print Friendly
Be Sociable, Share!

  • Tim

    Wouldn’t it make more sense and help finance the road infrastructure if states and the federal government actually used the taxes collected at the pump to maintain the roads, bridges, etc.?

  • Anonymous

    I suggest they put up Casinos and slot machines along the roadside so those driving can take a break and make their needed contribution to the road system at the same time :-)

  • Anonymous

    Do fuel taxes really make you decide on where to take a driving trip? Not really.
    We are already taxed at the fuel pump for our driving, we just need the State Governments to use the money properly. Here in CA they rob Peter to pay Paul which is wrong!!!!!

  • Robert B

    If you drive a plugin car like a Checy Volt of Nissan Leaf, you’re not paying any taxes because you’re not using gasoline. You’re using electricity. You get a free ride (no pun intended.) using our system of roads and bridges (except for tolls, of course.) Also, with the proliferation of hybrids getting much better gasoline mileage, we are not paying as much per mile of road used as we have in the past. The problem of financing our transportation infrastructure for cars, busses, and trucks needs to be solved – soon. The political problem as I see it is that every Republican in Congress has signed Grover Norquist’s no new tax pledge. How are they going to solve this problem without new taxes in some way?

  • Anonymous

    I thought the OR gas tax was 30 cents. Guess not.

Previous post:

Next post: