Colorado Gas Tax

At $0.22 per gallon, the Colorado state gas tax is driving up the cost of fuel.
Written by Alison Daurio
Reviewed by Jessica Barrett
Updated on Oct 25, 2022
Despite rising gas prices, drivers have to pay a fuel excise tax to the state, which further increases the cost of gas. In Colorado, the state-level gas tax is $0.22 per gallon.
Expected to generate about $662.9 million this year in state revenue, the Colorado fuel excise tax drives up the cost of gas. This can be frustrating to the many Colorado residents still dealing with financial repercussions from the COVID-19 pandemic. Thankfully, Governor Polis and Democratic lawmakers have already worked to delay a $0.2 increase until 2023, but rising gas prices remain a struggle for many Colorado drivers.
Here with an explanation of the Colorado gas tax and what it means for drivers is
, the licensed broker app that finds you the best deals on
car insurance
. We’ll go over everything you need to know about the state-level gas tax, and how you can offset the high price of gas by lowering your
Colorado car insurance

How much is the Colorado gas tax?

In Colorado, residents pay a gas tax of $0.22 per gallon for the 2022-2023 fiscal year. A proposed increase of $0.2 per gallon was put off until 2023, which means that Colorado’s gas tax for this year is the same as it was last year.
While the $0.22 per gallon state gas tax might not seem like much, the cost per gallon is already high as a result of the war between Russia and Ukraine—and these extra taxes drive up the price even further. Because of these soaring fuel costs, some Colorado motorists are forced to drive less or use other means of transportation.
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Is gas tax relief on the way in Colorado?

Unfortunately for Colorado drivers, the state has decided not to answer President Biden’s call for a “gas tax holiday,” and residents continue to pay steep prices at the pump. However, Governor Polis and Democratic lawmakers decided to delay this year’s proposed $0.2 per gallon gas tax increase until 2023.

How high are gas prices in Colorado?

Based on data from
, Colorado drivers pay an average of $3.752 per gallon of gas as of September 2022. That’s slightly higher than the national average of $3.70 per gallon, making Colorado the 16th most expensive state for gas in the nation.
Of course, the average price of gas in Colorado is just that—an average. The exact amount you’ll pay at the pump depends on things like the type of fuel you put in your car, where you live, and the specific gas station you use.
The most expensive gas stations in the state are located near Vail, where drivers pay an average of $4.169 per gallon, while gas station prices near Greeley are much lower, averaging out to just $3.649 per gallon.
Unbalanced gas costs in Colorado can become even more problematic when you consider other car-related expenses that drivers deal with. For example,
Denver car insurance
costs are the highest in the state, making expensive gas costs an even bigger burden for drivers that live near the Mile High City.
Here’s how the average fuel costs of some of Colorado’s major cities stack up, according to AAA’s September 2022 data.
  • Boulder: $3.715 per gallon (vs. $3.595 in September 2021)
  • Colorado Springs: $3.671 per gallon (vs. $3.586 in September 2021)
  • Denver: $3.683 per gallon (vs. $3.522 in September 2021)
  • Durango: $4.155 per gallon (vs. $3.443 in September 2021)
  • Fort Collins: $3.773 per gallon (vs. $3.498 in September 2021)
  • Glenwood Springs: $4.030 per gallon (vs. $3.83 in September 2021)
  • Grand Junction: $3.828 per gallon (vs. $3.564 in September 2021)
  • Greeley: $3.649 per gallon (vs. $3.445 in September 2021)
  • Pueblo: $3.652 per gallon (vs. $3.686 in September 2021)
  • Vail: $4.169 per gallon (vs. $3.86 in September 2021)

Which state has the highest gas tax?

As of September 2022,
has the highest fuel tax rate in the nation, while
New Mexico
has the lowest.
have both suspended their state gas tax to help drivers deal with the rising cost of fuel. 
Curious how Colorado’s gas tax rate compares to other states? Use the table below to find out how much each state’s fuel excise tax is.
Gas tax
$0.28 per gallon
$0.0895 per gallon
$0.18 per gallon
$0.245 per gallon
$0.539 per gallon
$0.22 per gallon
$0.0 per gallon
$0.23 per gallon
District of Columbia
$0.235 per gallon
$0.19 per gallon
$0.0 per gallon
$0.16 per gallon
$0.32 per gallon
$0.392 per gallon
$0.33 per gallon
$0.24 to $0.305 per gallon
$0.240 per gallon
$0.246 per gallon
$0.20 per gallon
$0.30 per gallon
$0.427 per gallon
$0.24 per gallon
$0.272 per gallon
$0.285 per gallon
$0.18 per gallon
$0.22 per gallon
$0.33 per gallon
$0.248 per gallon
$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
$0.385 per gallon
$0.19 per gallon
$0.38 per gallon
$0.576 per gallon
Rhode Island
$0.34 per gallon
South Carolina
$0.28 per gallon
South Dakota
$0.28 per gallon
$0.26 per gallon
$0.20 per gallon
$0.319 per gallon
$0.316 per gallon
$0.28 per gallon
$0.494 per gallon
West Virginia
$0.357 per gallon
$0.309 per gallon
$0.24 per gallon
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How to save on fuel and insurance costs in Colorado

If you want to offset the cost of gas, things like sticking to the speed limit and keeping on top of your car’s regular
maintenance schedule
can help reduce your vehicle’s fuel consumption—-as well as lower your repair and car insurance costs.
All those savings can really add up, depending on where you live. For example,
Fort Collins car insurance
costs are among the highest in the state, making it more important than ever for drivers to try and cut costs on car-related expenses.
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