Tennessee Gas Tax

Tennessee’s fuel tax is holding steady at $0.274 per gallon in 2022—on top of lower-than-average gas prices.
Written by Macy Fouse
Reviewed by Jessica Barrett
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Tennesseans
may not love the state gas tax of $0.274 per gallon, but this number and that state’s current gas prices are lower than the national average. 
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How much is the Tennessee gas tax?

For the 2022-2023 fiscal year, Tennessee’s gas tax is $0.274 per gallon (26-cent gasoline tax plus a 1.4-cent special petroleum fee). Tennessee’s gas tax hasn’t increased since 2017 when the IMPROVE Act implemented a gradual increase of six cents over three years to pay for nearly 1,000 road construction projects.
While this is about average for a state gas tax, that doesn’t mean Tennesseans aren’t feeling it at the pump—especially since prices skyrocketed in the summer of 2022. These increases have pushed Tennessee drivers to adjust their driving habits. 

Is gas tax relief on the way in Tennessee?

In early 2022, a state lawmaker proposed a bill that would lower the state gas tax back to the pre-IMPROVE Act number of twenty cents per gallon. The bill was assigned to the Transportation Subcommittee, but its future is unknown, so don’t get your hopes up for a decrease anytime soon. 
Despite President Biden’s proposal for a “gas tax holiday,” Gov. Bill Lee does not plan on issuing a gas tax holiday in the Volunteer State. 
MORE:How high is the cost of living in Tennessee?
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How high are gas prices in Tennessee?

As of September 2023, the average price of a gallon of gas in Tennessee is $3.399 according to AAA. This is up from $3.360 one year ago, but it sits below the current national average of $3.803
This price is an average across all of Tennessee, but prices vary drastically by county and region. For example, the highest prices can be found in Fayette County, where residents are currently paying an average of $3.487 for a gallon. On the other hand, drivers in Dyer County are currently paying just $3.314
Here’s a look at the average gas prices across Tennessee’s biggest cities according to AAA’s data from September 2022:
  • Nashville: $3.478 per gallon (vs. $3.343 in September 2022)
  • Memphis: $3.459 per gallon (vs. $3.450 in September 2022)
  • Knoxville: $3.316 per gallon (vs. $3.422 in September 2022)
  • Chattanooga: $3.346 per gallon (vs. $3.241 in September 2022)
  • Clarksville: $3.365 per gallon (vs. $3.217 in September 2022)
MORE: How to deal with rising gas prices in Tennessee
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Which state has the highest gas tax? 

Tennessee’s gas tax hovers right around the average price across the US, but you can check out what other states are paying in the table below.
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
$0.334 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

How to save on fuel and insurance costs in Tennessee

Whether you’re enjoying the lower gas prices of Southeast Tennessee or feeling the strain on your budget in West Tennessee, there are a few ways to cut back on your gas costs. Driving with caution, avoiding quick acceleration, and keeping up with
regular maintenance
are just a few effortless approaches. Not only can these save you money on gas, but they could reduce your repair and insurance expenses, too!
This is great news—especially in certain parts of Tennessee where the cost of insurance can get downright pricey.
Memphis car insurance
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