California Gas Tax
It’s more expensive than ever to fill up your tank in the Golden State. In July 2022, the California gas tax increased to an all-time high of $0.539 per gallon.
Written by R.E. Fulton
Reviewed by Jessica Barrett
As of September 1, 2023, the fuel excise tax in
California
is approximately $0.58 per gallon—an all-time high for gas prices in the state
. How much is the California gas tax?
California’s gas tax for 2022-2023 is close to $0.58 per gallon. That’s a 7.4% increase on the previous tax rate of $0.54.
That might not seem like much, but drivers are feeling the difference. The California gas tax increase of July 2023 came on the heels of rising gas prices nationwide as a result of inflation. Although California’s fuel excise tax has been increasing annually since the passage of Senate Bill 1 in 2017, high gas prices are already causing Californians to change their driving habits.
Is gas tax relief on the way in California?
State lawmakers are divided over the new tax rate. While Democrats and Republicans alike have called for relief from oppressive gas prices, the state GOP is pushing for a pause in tax hikes—with a lot of support from taxpayers! For now, though, Gov. Gavin Newsom hasn’t indicated that the gas tax is likely to shift.
While California has not responded to President Biden’s call for a “gas tax holiday,” the new state budget allows for gas rebates, which taxpayers can expect in Fall 2022.
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How high are gas prices in California?
According to AAA, the average price of a gallon of gas in the state of California is approximately $5.298 (as of September 2023).
That’s well above the national average of $3.818, making California the most expensive state for gas in 2023. But those prices aren’t evenly distributed: gas stations across the state are charging different amounts, with some of the lowest prices in Southern California.
Take, for example, the difference between San Diego and San Francisco. The current average price of a gallon of gas in San Diego is $5.366, up from $5.223 a year ago. Up in San Francisco, a gallon of the good stuff runs you $5.366 on average, compared to the September 2022 average of $5.450. In fact, gas prices in the Bay Area are some of the highest in the state behind Alpine and Mono Counties.
The uneven cost of gas in California becomes even more serious when you factor in the other car-related expenses that drivers carry in these areas.
San Francisco car insurance costs
are among the highest in the state, making the inflated cost of gas an even bigger burden. Here’s how average gas prices in some of California’s other major cities compare, based on September 2023 data from AAA:
- Bakersfield: $5.177 per gallon (vs. $5.342 in September 2022)
- Fresno: $5.210 per gallon (vs. $5.221 in September 2022)
- Los Angeles: $5.372 per gallon (vs. $5.253 in September 2022)
- Oakland: $5.294 per gallon (vs. $5.336 in September 2022)
- Sacramento: $5.229 per gallon (vs. $5.141 in September 2022)
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Which state has the highest gas tax?
California’s gas tax is the second-highest of any state—only Pennsylvania has a higher fuel tax rate. Use the table below to find the gas tax in other states as of September 2022.
State | Gas tax |
|---|---|
Alabama | $0.28 per gallon |
Alaska | $0.0895 per gallon |
Arizona | $0.18 per gallon |
Arkansas | $0.245 per gallon |
California | $0.539 per gallon |
Colorado | $0.22 per gallon |
Connecticut | $0.0 per gallon |
Delaware | $0.23 per gallon |
District of Columbia | $0.235 per gallon |
Florida | $0.19 per gallon |
Georgia | $0.0 per gallon |
Hawaii | $0.16 per gallon |
Idaho | $0.32 per gallon |
Illinois | $0.392 per gallon |
Indiana | $0.33 per gallon |
Iowa | $0.24 to $0.305 per gallon |
Kansas | $0.240 per gallon |
Kentucky | $0.246 per gallon |
Louisiana | $0.20 per gallon |
Maine | $0.30 per gallon |
Maryland | $0.427 per gallon |
Massachusetts | $0.24 per gallon |
Michigan | $0.272 per gallon |
Minnesota | $0.285 per gallon |
Mississippi | $0.18 per gallon |
Missouri | $0.22 per gallon |
Montana | $0.33 per gallon |
Nebraska | $0.248 per gallon |
Nevada | $0.23 per gallon |
New Hampshire | $0.222 per gallon |
New Jersey | $0.421 per gallon |
New Mexico | $0.17 per gallon |
New York | $0.1735 per gallon |
North Carolina | $0.385 per gallon |
North Dakota | $0.230 per gallon |
Ohio | $0.385 per gallon |
Oklahoma | $0.19 per gallon |
Oregon | $0.38 per gallon |
Pennsylvania | $0.576 per gallon |
Rhode Island | $0.34 per gallon |
South Carolina | $0.28 per gallon |
South Dakota | $0.28 per gallon |
Tennessee | $0.26 per gallon |
Texas | $0.20 per gallon |
Utah | $0.319 per gallon |
Vermont | $0.316 per gallon |
Virginia | $0.28 per gallon |
Washington | $0.494 per gallon |
West Virginia | $0.357 per gallon |
Wisconsin | $0.309 per gallon |
Wyoming | $0.24 per gallon |
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How to save on fuel and insurance costs in California
To deal with California’s high tax on already-expensive gas, you should practice safe driving, ease up on the accelerator, and follow
a regular maintenance schedule
. Not only will you reduce the amount of gas your vehicle uses, but you could lower your repair and insurance costs as well! And that’s good news—because depending on where you live in California, the cost of insurance coverage can get pretty high.
Oakland car insurance costs
, for instance, are well above the state average. Combine that with dizzyingly high gas prices, and it’s more important than ever for California drivers to save. Luckily, saving on car insurance is easier than ever, thanks to
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