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
This ranking only accounts for excise tax rates. Sales taxes are not included. Additionally, states might increase or decrease tax rates during 2024, and some states might also offer gas tax holidays this year.
Colorado
Gas tax total: $0.22 per gallon of gasoline
Colorado has one of the cheapest gas taxes in the country, but it's the only state on this list to charge more than $0.20. So, the Centennial State takes tenth place for the lowest gas taxes.
However, sales taxes can climb to over 10% in some areas of Colorado, so don't be surprised if you pay more than expected when you stock up on goodies at the convenience store.
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Texas
Gas tax total: $0.20 per gallon of gasoline
Texas treats its residents well 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 Lone Star State can feel less costly.
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Louisiana
Gas tax total: $0.20 per gallon of gasoline
Louisiana's excise tax on gasoline is just $0.20, tying it with Texas. You can fill up your diesel-powered vehicle at the same tax rate of $0.20, 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.
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Missouri
Gas tax total: $0.195 per gallon of gasoline
Excise taxes on gasoline remain less than $0.20 in Missouri, bit they come close. At $0.195 per gallon of gasoline, the Show-Me States comes in at number seven for the lowest gas taxes. There's good news for diesel truck drivers, too. Missouri taxes diesel fuel at the same $0.195 per gallon rate.
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Oklahoma
Gas tax total: $0.19 per gallon of gasoline
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.
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Arizona
Gas tax total: $0.18 per gallon of gasoline
Arizona has a cheaper excise tax on gas than Oklahoma does, at only $0.18 per gallon. Diesel fuel is taxed at the same rate for some drivers. However, the rate jumps to $0.26 for heavy vehicles.
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Mississippi
Gas tax total: $0.18 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 $0.18 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%.
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New Mexico
Gas tax total: 0.17 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.
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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.
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Alaska
Gas tax total: $0.895 per gallon of gasoline
Alaska takes the win for states with the cheapest gas tax. At less than $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.
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