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Kiplinger
Kiplinger
Business
Gabriella Cruz-Martínez

10 States With the Lowest Gas Tax in 2026

U.S. bills stuck in car gas flap .

You may be thinking a lot about gas taxes recently, and honestly, that makes sense as gas prices continue to climb in 2026. The federal gasoline tax is holding steady at 18.4 cents per gallon, but state taxes, which vary depending on where you live, are a different story.

Right now, the average state gas tax is about 33 cents per gallon, with some states making small increases to keep up with inflation and fund road and infrastructure projects. In other words, a few extra cents here and there can start to add up faster than you might expect.

And the range is striking. California sits near the top at 59.6 cents per gallon, while Alaska is on the opposite end at around 9 cents per gallon. So, depending on your location, gas taxes can either feel like a minor detail or a noticeable part of your total at the pump.

This ranking only accounts for excise tax rates. Sales taxes are not included. Additionally, states might increase or decrease tax rates during 2026, and some states might also offer gas tax holidays this year.

2026 changes in state gas and diesel fuel tax rates

Although the national average gas tax rate was nearly flat heading into 2026, there were still a few notable changes to gasoline and diesel taxes in certain states.

One of the biggest changes came from Oregon, where the gasoline tax increased from 40 cents to 46 cents per gallon, and diesel fuel was newly brought under the motor vehicle fuel tax starting January 1, 2026.

On the other hand, Utah was one of the few states to move in the opposite direction, slightly decreasing both gasoline and diesel taxes from 38.5 cents to 37.9 cents per gallon.

Overall, rather than the widespread decreases seen in the previous year, changes in 2026 were more limited and mixed. This highlighted how gas and diesel tax adjustments are typically gradual and vary by state depending on local policy decisions.

With that being said, let’s dive into the states with the lowest taxes on gasoline.

Excise gas tax: 22 cents per gallon

Total gas tax: 40 cents per gallon

New Hampshire recently replaced Nevada to take the #10 spot on the list of states with the lowest gas taxes.

The total state and local gasoline tax averages approximately 22 cents per gallon (cpg), with diesel fuel taxed similarly.

While the fuel tax is low enough to make this list, travelers should note that New Hampshire takes a different approach overall. The state has no sales tax and no income tax on wages, which can make day-to-day spending feel lighter.

Instead, it relies more on property taxes and select local taxes (like meals and lodging), creating a mixed tax landscape.

Excise gas tax: 22 cents per gallon

Total gas tax: 40 cents per gallon

While the fuel tax keeps Colorado on the lower end nationally, Colorado still sits in the low 20-cent-per-gallon range for gasoline, with diesel taxed slightly lower. This places the state near the bottom of the fuel tax tier, though not at the very lowest.

Colorado also adds a few transportation-related fees on top of its base fuel tax, which can slightly increase the total cost at the pump depending on where you're driving. Overall, it maintains a relatively moderate and straightforward fuel tax structure compared to many states.

Excise gas tax: 21 cents per gallon

Total gas tax: 39 cents per gallon

While fuel taxes keep Mississippi among the lower-tax states, it has a 20-cent-per-gallon excise tax and a total gas tax of about 39 cents per gallon, placing it in the lower-middle range nationally.

Mississippi's fuel tax structure has also been gradually adjusted in recent years to support long-needed road and bridge improvements, reflecting the state's focus on maintaining and upgrading its transportation network.

Excise tax total: 20 cents per gallon

Total gas tax: 38 cents per gallon

Texas is popular as a state with no income tax. Of course, if you’re just passing through, being a no-income tax state doesn't help 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.

Excise gas tax: 20 cents per gallon

Total gas tax: 38 cents per gallon

Louisiana's excise tax on gasoline is just 20 cents per gallon. You can fill up your diesel-powered vehicle at the same tax rate of 20 cpg, too.

Even though Louisiana has a low statewide sales tax rate of 5%, localities can charge an additional 5.11%, according to the Tax Foundation. That’s a lot of sales tax!

Excise gas tax: 19 cents per gallon

Total gas tax: 37 cents per gallon

With a gasoline tax of $0.20 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 25 cents per gallon. It might not seem like a lot, but those savings can add up. So, consider filling up in Oklahoma if you're heading north.

Excise gas tax: 18 cents per gallon

Total gas tax: 36 cents per gallon

Arizona has a lower excise tax on gas than Oklahoma, 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.

Excise gas tax: 17 cents per gallon

Total gas tax: 35 cents per gallon

Visiting New Mexico can offer a bit of a break at the pump, with a gas tax in the high teens per gallon (about 17 cents in excise tax), placing it among the lower-tax states nationally.

Diesel drivers pay slightly more, with a special fuel tax of around 21 cents per gallon plus small additional fees, bringing the total to just under 23 cents per gallon. Still, both gasoline and diesel remain relatively inexpensive compared to most states.

Excise gas tax: 17

Gas tax total: 35 cents per gallon

Hawaii’s gas tax is nearly double Alaska’s, yet it remains relatively reasonable at just 17 cents per gallon. This number doesn't include local tax options, so you could end up paying a higher rate.

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.

Excise gas tax: 9 cents per gallon

Total gas tax: 27 cents per gallon

Alaska takes the win for having the lowest gas tax. At about 9 cents 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.

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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