Federal Gas Tax: The federal gas tax is 18.4 cents per gallon, and the tax on diesel fuel is 24.4 cents per gallon. Since it was last increased on 1st October 1993, the federal tax has not been adjusted for inflation, which rose by 93% between 1993 and 2022. State and local taxes and levies currently contribute an average of 34.24 cents to gasoline and 35.89 cents to diesel per gallon in the US, for a total US volume-weighted average fuel tax of 52.64 cents for gas and 60.29 cents for diesel as of April 2019.
We collected data on Federal Gas Tax which will be discussed in the article. Stay connected with us till the end.
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Federal Gas Tax in the United States
The federal gas tax has decreased in real terms since it is not inflation-adjusted. State excise taxes on gasoline are in addition to the federal fuel tax, and other taxes and fees, such as environmental surcharges, are levied at the state and local levels. Gas is subject to an average state excise tax of 25.45 cents per gallon, which varies from 0 cents in Pennsylvania to 51.1 cents in California. With an average of 12.14 cents per gallon, other state taxes and fees levied on gasoline range from 0 in a small number of states like Texas and Iowa to 58.7 cents per gallon in Pennsylvania.
Finally, with an average of 38.07 cents per gallon, the total state excise tax, various state taxes, and fees range from 15.13 cents per gallon in Alaska to 68.15 cents per gallon in California. Figure 4 displays the state and federal gasoline excise taxes, other state taxes and levies, as well as the retail pricing of gasoline for each state.
4.61 percent on average of the price of gasoline that consumers pay at the pump comes from the federal excise tax, while state taxes and fees make up a different percentage depending on the state. For instance, the average price of gasoline in Pennsylvania and Alaska is $4.16 per gallon, but the breakdown of producer costs and taxes varies. Pennsylvania has high state taxes on gasoline but relatively low producer pricing of $3.39 per gallon. The producer prices in Alaska, however, are higher at $3.82 a gallon despite the state’s relatively low taxation.
State Gas Tax
The state gas tax is different from the Federal Gas Tax, the state has average gas tax is 29.15 cents per gallon. 27 states have gas taxes that are lower than the average, while 23 have rates that are higher. This indicates that the gas tax is generally evenly spread across the country, with just a small statistical distribution toward states with lower taxes. From $0.0895 in Alaska to $0.586 in Pennsylvania, different states have different gas taxes. The top five states for gas taxes are:
- Pennsylvania ($0.586)
- California ($0.533)
- Washington ($0.519952)
- New Jersey ($0.414)
- New York ($0.4045)
- Alaska ($0.0895)
- Hawaii ($0.16)
- Virginia ($162)
- Missouri ($0.1742)
- Mississippi ($0.184)
USA President Biden’s Statement on Federal Gas Tax
USA president Biden is going to propose that congress end that Federal Gas Tax through the course of this summer resuming it in September. So the busy summer driving months will have no gas tax according to the Biden plan. Here’s what we know as of right now the president is going to call for Congress to suspend the federal gas and diesel taxes for three months that is until September.
He is going to be requesting that states suspend the Federal Gas tax or find similar relief. Biden also asked the industry to put what the white house calls their record profits to work and not to absorb any benefit that they get from any gas tax. Gas tax holiday he’s also calling on retailers to promptly lower their prices remember it’s an 18.4 per gallon on gas it’s a 24 cent per gallon on diesel so that’s a pretty hefty tax that would be becoming off under this plan the president’s also calling for no effect.
How much Federal Gas Tax revenues?
In the 2016 fiscal year, federal fuel taxes generated $36.4 billion, of which $26.1 billion came from gasoline taxes and $10.3 billion from taxes on diesel and specialty fuels. The tax is not inflation-indexed and was last increased in 1993. Depending on the source, there was 68 percent or as much as 77 percent overall inflation from 1993 to 2017.
What is Federal Gas Tax Policy for the Public?
Some policy experts think that a higher tax is required to pay for and maintain the nation’s transportation system, particularly mass transit. The purchasing power of fixed-rate the Federal Gas Tax has decreased as infrastructure building costs have increased and cars have gotten more fuel-efficient. The National Surface Transportation Infrastructure Financing Commission published a thorough report in February 2009 recommending a 10-cent increase in the gasoline tax, a 15-cent increase in the diesel tax, and a change that would tie both of these tax rates to inflation to offset this loss of purchasing power.
Those opposed to raising the gas tax contend that a large portion of the money is instead used to pay for debt service and other non-transportation-related government projects. Other studies have pointed out that similar detours can take place in both directions and that the gas taxes and “user fees” that motorists pay are insufficient to pay for all road-related expenses.