Michigan Gas Tax

Although gas prices may be lower in Michigan than in other states, fueling up is still pricey with a tax of 27.2 cents per gallon.
Written by Andrea Barrett
Reviewed by Jessica Barrett
Updated on Oct 06, 2022
Effective January 1, 2022, the gas tax in Michigan climbed to $0.272 per gallon—a 3.3% increase from the previous year’s gas tax rate—and it’s expected to rise again.
Gas prices have been rising all over the country, with certain states being hit more substantially than others. But between the pandemic, the war and Ukraine, inflation, and supply and demand, gas prices have been driven to an excessive point for many drivers—and the rising gas tax rates don’t help. While Michigan has prices that may be lower than other states, drivers are starting to feel their budgets tighten—but there is hope on the horizon. 
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How much is the Michigan gas tax?

Effective January 1 through December 31, 2022, Michigan’s gas tax rates have fluctuated, but they currently sit at $0.272 per gallon. Compared to January 1, 2021, the gas tax rate has risen 3.3% to adjust for inflation, which is still significantly less than in some other states. 
Drivers also have to account for a fluctuating gasoline sales tax that makes filling up your tank in Michigan some of the priciest in the country. 
Here’s what Michigan’s gas sales tax rates have done over the 2022 calendar year:
  • January: 17.5 cents
  • February: 16.4 cents
  • March: 16.5 cents
  • April: 17.6 cents
  • May: 21.6 cents
  • June: 20.9 cents
  • July: 23.5 cents
  • August: 27.3 cents
  • September: 24.7 cents
The government has decreased gas and diesel sales tax rates for October 2022, with a projected decrease to $0.209 for gasoline and $0.287 for diesel
Although other states have seen larger gas tax hikes, Michigan is still dealing with the aftermath of the pandemic, war in Ukraine, and supply and demand issues, which means drivers are paying unusually high rates at the pump. 
Back in 2015, then-Gov. Rick Snyder signed a law that would help fix Michigan’s roads by boosting funding. The legislation included a 7.3-cent increase in the gas tax and a jump in the annual vehicle registration tax. Even still, the yearly increase of the gas tax is capped at 5% regardless of inflation. 
In 2021, Michigan took ninth place for the highest gas tax rates in the country, coming in at just over 45 cents combined per gallon. And with already high fuel prices, Michigan drivers must rethink their driving habits. 

Is gas tax relief on the way in Michigan?

Although gas taxes are far from the caliber of California or Pennsylvania, Michigan drivers are still feeling the pressure. The good news is that gasoline sales tax is expected to drop from $0.247 per gallon to $0.209 per gallon on October 1, 2022, which may offer some peace of mind. That said, Michigan hasn’t budged much on President Biden’s push to repeal the federal gas tax for three months. 
Biden’s “gas tax holiday” plan was supported by Gov. Gretchen Whitmer, though, which would save families nearly 50 cents per gallon. In addition to the suspension of federal and state gas tax, MI Tax Rebate Right Now was also proposed: a plan to send $500 to Michigan’s working families immediately to provide financial relief from increasing gas prices.

How high are gas prices in Michigan?

According to AAA, the average fuel price in Michigan is $4.154 as of September 2022. 
Although Michigan’s gas prices are pretty reasonable comparatively speaking, it’s still above the national average of $3.765—ranking Michigan among some of the highest prices in the country. 
Compare that to California’s $6.036 per gallon, and Michigan’s prices don’t seem so bad. Keep in mind that gas prices aren’t uniform state-wide. Northern Michigan appears to be hit the hardest, with gas prices exceeding $4.319 per gallon.
If you’re looking for cheap gas, there are a few places to find it. Although still above the national average, southern Michigan areas like Eaton and Lenawee see lower prices of $4.099 and $4.101, respectively. Even the lowest prices are higher than last year’s average of $3.236 per gallon.
In addition to increasing pump prices, drivers also have to worry about car expenses and insurance—and
Michigan car insurance costs
aren’t exactly giving drivers the break they need. Michigan insurance costs are among the five most expensive in the country, along with
New York
, and
Washington, D.C
Here’s how average gas prices in some of Michigan’s biggest cities compare, based on September 2022 data from AAA: 
  • Detroit: $4.172 per gallon (vs. $3.271 in September 2021)
  • Lansing: $4.145 per gallon (vs. $3.230 in September 2021)
  • Grand Rapids: $4.146 per gallon (vs. $3.223 in September 2021)
  • Ann Arbor: $4.144 per gallon (vs. $3.280 in September 2021)
  • Flint: $4.170 per gallon (vs. $3.217 in September 2021)

Which state has the highest gas tax? 

With a gas tax of $0.272, Michigan doesn’t make it into the top 10 states with the highest gas tax rates, but drivers there are still combatting spiking costs. Check out the table below to find the gas tax in other states as of September 2022.
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
$0.334 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 Michigan

Gas prices dropping in Michigan might be a bit of a pipe dream at the moment, but with leaders pressing for relief for families, it may happen sooner than you think. In the meantime, there are other ways to
save on car expenses
! Practice defensive driving (or take a
defensive driving course
), using cruise control to reduce acceleration and speeding, and following
a regular maintenance schedule
are all effortless places to start. 
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