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. 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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Start earning nowHow 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
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.
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| $0.24 to $0.305 per gallon |
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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
rates, for instance, are the highest in the state. When you pair that with the gas prices, finding lower prices is crucial—and Jerry
can help with that. As the licensed insurance broker
and car super app, Jerry searches through more than 55 top providers to find you the lowest possible rates customized to your profile—all in less than a minute. The best part? Customers save over $800 a year on average! “Jerry
saved me over $1000 a year by switching me from my previous insurer to Progressive. I’m thrilled!” —Joshua D.