North Dakota Gas Tax
North Dakota is one of the most expensive states when it comes to gas prices—click here for tips on how to save money on fuel and car insurance.
Written by Matt Nightingale
Reviewed by Jessica Barrett
North Dakota’s fuel excise tax is 23 cents per gallon as of September 2022. While that may seem like a pretty big levy, it’s actually among the lowest gas taxes in the entire country.
All across the nation, people are struggling with high gas prices, and North Dakota is no exception. As of September 2022, the cost of a gallon of gasoline in North Dakota was $3.703—a 64-cent increase from a year ago.
So, what’s behind this gas price increase in the Peace Garden State? Here to break it all down is that
trusted broker
and car insurance
comparison app, Jerry
. We’ll look at North Dakota’s gas tax history, why gas prices are so high, and we’ll even throw in some tips on how to save on your fuel costs.All gassed up? Then let’s go!
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How much is the North Dakota gas tax?
North Dakota’s gas tax is $0.23 per gallon, which increased from $0.21 all the way back in 2005. All taxes collected from North Dakota’s gas tax are used to build and maintain roads and bridges, as well as fund alternative transportation projects and other North Dakota Department of Transportation services.
But that 23-cent tax isn’t the only added expense that North Dakotans see on their fuel charges. In addition to the state’s fuel excise tax, North Dakota also imposes a 5% sales tax on goods and services, including gasoline.
Local governments are allowed to tack on their own tax in the range of 0–3.5%. Finally, the federal government adds on an 18.4-cent-per-gallon charge for the federal gas tax.
All told, North Dakotans pay about $0.674 per gallon in taxes on average—and that’s not even mentioning the increasing price of the gas itself.
MORE: North Dakota road closures
Gas prices have been skyrocketing over the past year, thanks in part to the war in Ukraine. With Russian oil imports banned, the US has fewer overall fuel reserves to draw on, causing the price of gas to go up.
And fuel reserves were already low to begin with due to the sudden halt of the transportation sector during the COVID-19 pandemic. As lockdowns spread across the country, fewer and fewer people were driving, lowering the demand for gasoline. Fuel companies reduced their production in kind, but as the country has rebounded to pre-pandemic levels of fuel use, those companies have struggled to keep up with surging demand, causing an overall fuel shortage, and therefore, higher gas prices.
Is gas tax relief on the way in North Dakota?
Although gas has become drastically more expensive over the past year, North Dakotans have been skeptical of gas tax relief plans, such as the federal gas tax holiday that was proposed by President Biden in June. Many North Dakotans have expressed a preference for money collected from gas taxes to be used for further gas exploration, production, and refinement.
Those folks may be right to be skeptical. A federal gas tax holiday would only yield about $6.75a month in savings for individuals while costing the federal government roughly $20 billion in gas tax revenue—money that could be spent on other much-needed projects. That’s likely one of the major reasons President Biden’s gas tax holiday idea failed to gain much traction.
MORE: Is premium gas worth the price?
How high are gas prices in North Dakota?
According to the American Auto Association, the average cost of gas in North Dakota is $3.703, which is just under the national average of $3.765 and $2.333 less than the price of gas in
California
.Still, despite the fact that North Dakota’s gas prices are below average, it remains one of the more expensive states in which to buy gasoline. The cheapest gas prices in the country are found in
Mississippi
, which boasts an average gas price of $3.068 per gallon.Of course, the price of gas isn’t the same everywhere in North Dakota, and how much you’ll pay depends on local sales tax rates. Counties in North Dakota can impose a local sales tax anywhere from 0–3.5%, so your gas costs will look different from county to county depending on the local sales tax rate.
Cass County has the lowest county sales tax rate in the state at just 0.5% added to the state-wide 5% sales tax. Not surprisingly, Cass County has one of the lowest gas prices in North Dakota—$3.598 per gallon. But, the lowest gas prices in N.D. are found in Towner County at $3.574 per gallon.
On the flip side, Grant County is the most expensive place to buy gas in Roughrider Country with a gallon of fuel ringing in at a head-spinning $4.239.
North Dakota’s cities have been spared the worst of it. Here’s a look at how much drivers are paying for gas in the state’s metro centers:
- Bismarck: $3.833 per gallon (compared to $3.084 per gallon in September 2021)
- Fargo: $3.598 per gallon (compared to $2.978 per gallon in September 2021)
- Grand Forks: $3.679 per gallon (compared to $3.012 per gallon in September 2021)
- Minot: $3.649 per gallon (compared to $3.106 per gallon in September 2021)
MORE: The best gas-saving apps of 2022
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Which state has the highest gas tax?
Believe it or not, North Dakota actually has one of the lowest gas taxes in the entire country, though that distinction belongs to Alaska whose regular gas tax rate is just $0.0895. The highest gas tax is found all the way over in Pennsylvania where they pay $0.576 cents per gallon.
Here’s a peek at what each state charges for fuel tax. Note that some states like Connecticut and Georgia have temporarily suspended their regular fuel tax.
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 North Dakota
As fuel prices soar, many Americans are looking for ways to save on gas costs. One way you can save is by keeping a
basic car maintenance schedule
. Adhering to your manufacturer’s recommended maintenance schedule will help ensure that your vehicle is running as efficiently as possible.Another way to save at the pump is by slowing down. Engines work more efficiently at lower RPMs, so avoid accelerating aggressively and you’ll see a reduction in your fuel costs. You can also save money by letting your car idle in the winter—cold cars are no fun to sit in, especially on a frosty North Dakota winter morning, but you’ll save money by letting your car warm up as you drive, and that fact alone should warm you up a bit.
Key Takeaway Save on gas costs by taking care of your car, easing off on the acceleration and brakes, and avoiding idling.
Here’s a bonus tip: you can offset the rising cost of gas by saving money on your annual car insurance bill. North Dakotans pay an annual average of $2,086 for
full coverage car insurance
. But, Jerry
can help reduce your North Dakota car insurance costs
.Jerry is an app that is specially designed to find you the cheapest car insurance rates for the kind of coverage you need. All you have to do is tell Jerry what you want, and in under a minute Jerry shows you all of your best options.
And the best part is that Jerry is a licensed broker, so you can cancel your old policy and start your new one quickly and easily right in the Jerry app.
“I was struggling because I wanted great insurance for my new car.Jerrywas so helpful, and the team answered all of my questions. Now I have the policy type I was looking for!” —Avery W.
