If you're driving
in Arizona
, you've probably noticed how costly gas is! In AZ, the gas tax, or fuel excise tax, is $0.18 per gallon as of 2022—giving it the fifth lowest gas tax rate out of every state in the country. This doesn’t mean that Arizonans pay less at the pump than most drivers in other states, however. In fact, according to AAA data from September 2022, gas prices in Arizona are the eighth most expensive in the country thanks to limited access to oil pipelines on top of an already volatile crude oil market.
Because of this, a state gas tax holiday akin to Biden’s proposed federal gas tax holiday may not help Arizona drivers out much—but it could provide critical temporary relief on fuel costs.
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars 4.7/5 app rating | Trusted by 5M+ drivers How much is the Arizona gas tax?
The gas tax in Arizona from 2022 to 2023 is $0.18 per gallon. Remarkably, the last time Arizona gas taxes increased was in 1991. To put that in perspective, Pennsylvania
has the highest gas tax rate in 2022 at $0.576 per gallon—with gas tax rates increasing about 5 cents per year between 2014 and 2019. In terms of state gas tax, Arizona actually as the fifth lowest in the country. Alaska beats out the nation at just $0.0895 per gallon while Hawaii, New Mexico, and Mississippi beat Arizona by no more than 2 cents.
Is gas tax relief on the way in Arizona?
Though Biden called upon state governments to suspend gas taxes between June and September to ease the impact of rising fuel costs, Arizona legislators are divided on such a “tax holiday.”
Governor Doug Ducey has stated that state infrastructure projects simply rely on Arizona’s gas tax resources too much: He has no plans to suspend gas taxes as a result. Ducey also argued that cutting gas taxes wouldn’t answer the problem of higher gas costs for Arizona drivers, favoring renewed construction on the Keystone XL pipeline project as a solution.
Arizona Senator Mark Kelly, on the other hand, believes that gas prices are putting too much financial burden on Arizona families for the government to ignore or delay action. In fact, Kelly co-sponsored the bill to suspend the $.0184 per gallon federal gas tax.
This would add additional savings at the pump to any state gas tax suspension, which would already save the average Arizona driver $103 per year, or $8.60 per month. In Kelly’s eyes, faster relief at any level could make all the difference.
Despite strong voices on either side, it appears that plans for any upcoming gas tax holidays in Arizona will be a “watch and wait” scenario for now.
MORE: Cost of living in Arizona
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Start earning nowHow high are gas prices in Arizona?
Despite Arizona’s lower gas tax rates compared to other states, it actually has the eighth highest gas prices in the nation—at $4.234 per gallon of regular gas according to AAA
(as of late September 2022). Though this isn’t nearly as high as California’s colossal $6.036 per gallon cost, it’s still more than the national average of $3.765. That said, gas stations don’t charge the same prices across Arizona either. Naturally, you’ll see the worst gas prices around Phoenix
and the Mojave Desert, while the best gas prices come out of Southern Arizona in Pima, Santa Cruz, and Yuma Counties. To give you an idea of that price difference, the average gas price per gallon in Maricopa County (where Phoenix is situated) is $4.573. South of the city in Pima County, however, gas prices drop by more than a dollar per gallon to just $3.430 per gallon instead.
With a rapidly growing population, it’s no wonder that both fuel costs and insurance costs in Phoenix are more expensive than more rural areas of Arizona. Mohave County, of course, takes exception to this as far as gas is concerned, however, with the Mojave Desert limiting fuel delivery.
Here’s a closer look at how average metro gas prices compare across some of Arizona’s more populated areas, using data from AAA in late September 2022.
Glendale
: $4.598 per gallon (vs. $3.144 in September 2021)Scottsdale: $4.590 per gallon (vs. $3.250 in September 2021)
Phoenix: $4.553 per gallon (vs. $3.136 in September 2021)
Flagstaff: $4.112 per gallon (vs. $3.446 in September 2021)
Tucson
: $3.431 per gallon (vs. $3.064 in September 2021)
MORE: The ultimate guide to moving to Phoenix
Which state has the highest gas tax?
Fortunately, Arizona does not have the highest state gas tax—that award goes to Pennsylvania
, then California
and Washington
. Here’s a look at average gas tax prices in each state (as of September 2022) to give you a better idea of where Arizona lands. | |
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| $0.24 to $0.305 per gallon |
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How to save on fuel and insurance costs in Arizona
The price of gas in Arizona is no joke, and though prices don’t appear to be going much further south anytime soon—there are other ways you can save money on your car ownership expenses.
Here’s how: Just download Jerry
(for free), input some basic info, and in less than a minute, Jerry will pinpoint the cheapest quotes for your coverage from over 55 top insurers. As soon as you decide on a policy, simply select it through the app, and Jerry’s expert, licensed brokers
will help handle all the calls and paperwork. Saving on car insurance doesn’t have to be as hard as saving at the pump. As proof of this, the average Jerry user saves an average of $800 or more on car insurance
per year! “I would 11/10 recommend Jerry
. I was originally quoted $700+ for insurance for my new car, but by using Jerry I got my payments down to $320 a month. They also have a great support team ready to answer any questions!” —Tobias F.