The fuel excise tax in Vermont as of October 2022 is $0.121 per gallon, but when you add in the federal gas tax and extra state fees, Vermonters pay over 55 cents per gallon of gasoline in taxes.
Everywhere you look in America gas prices are shooting up, and Vermont is feeling the squeeze. As of writing the average price of a gallon of gasoline in Vermont is $3.694—more than 60 cents higher than the price of a gallon this time last year.
Here to take a closer look at Vermont’s gas tax and the rising price of fuel in the Green Mountain State is the trusted broker
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Start earning nowHow much is the Vermont gas tax?
State regulators in Vermont set the state’s gas tax rate every three months. In July the fuel excise tax was increased by 4.36 cents to $0.121 per gallon. But, that’s hardly the end of it. In addition to the fuel excise tax, Vermont charges a $0.01 per gallon distributor fee, a $0.0795 per gallon Motor Fuel Transporation Infrastructure Assessment fee, and a $0.1591 per gallon Motor Fuel Tax Assessment.
Vermont adds $0.3696 in fuel taxes to every gallon of gasoline purchased. Add on the 18.4-cent federal gas tax, and the total fuel tax charge for Vermonter’s comes to $0.5536 per gallon.
Gas prices have risen drastically over the past year, in no small part due to the War in Ukraine. Russian oil imports have been banned from the US, reducing the number of oil reserves available to the American market, and causing the price of gas to jump up.
Not only that, but oil companies have struggled to keep up with demand as the world emerges from the economic slowdown caused by the COVID-19 pandemic. Low supply and high demand typically mean higher gas prices.
So, with the price on a sharp incline, the addition of 55 cents to each gallon is pretty significant.
Is gas tax relief on the way in Vermont?
Opinions have been mixed as far as the gas taxes in Vermont are concerned. President Biden proposed that states participate in a gas tax holiday in June. Governor Phil Scott briefly considered a state gas tax holiday, but the plan was ultimately ditched and the state fuel excise tax was raised to 12.1 cents later in July.
One of the key issues is that excise taxes are imposed on gasoline distributors, and the distributors pass the cost of the tax on to the consumer by raising the price of gasoline. Many fear that by suspending Vermont’s fuel excise tax, businesses will choose to keep their prices high, thereby profiting from the tax cut while consumers see no relief.
MORE: Is premium gas worth the price?
How high are gas prices in Vermont?
According to the American Auto Association, as of October 7, 2022, the average price of gasoline in Vermont was $3.964, which is lower than the national average of $3.891. That puts Vermont in the middle of the pack compared to the rest of the country. The highest gas prices are found in California where drivers pay $6.392 per gallon on average, while the lowest gas prices are found in Mississippi at an average price of $3.205 per gallon.
The price of gas isn’t the same right across the state of Vermont. Some counties pay more for gas than others. The highest gas prices in Vermont are found in Essex County, where you’ll pay $3.856 per gallon of gas. For the lowest fuel fees, you’ll need to travel to Windham County where they only pay $3.545 per gallon.
Not only does the price of gasoline itself vary from county to county, but so do sales taxes. Vermont imposes a 6% sales tax on goods and services, and counties have the option of imposing an additional 1% local sales tax. So, not only are Vermonters paying $0.5536 in gas taxes and fees per gallon, but they’re also paying upwards of 7% sales tax on top of it all.
So, how much you pay for gas in Vermont very much depends on where you are. Here’s a look at gas prices in some of Vermont's major centers.:
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Which state has the highest gas tax?
Vermonters can take some relief in knowing that they do not have the highest gas tax in the country. That dubious distinction belongs to Pennsylvania, which imposes a gargantuan $0.576 per liter levy. On the opposite end of the spectrum, Alaska’s gas tax rate is the lowest at just $0.0895 per gallon.
Here is a look at what each state charges for gas tax per gallon. Note that Georgia and Connecticut have taken a temporary gas tax holiday, so the current tax rate does not reflect their regular tax rate.
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| $0.24 to $0.305 per gallon |
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How to save on fuel and insurance costs in Vermont
You don’t have to sit idly by and watch gas prices eat away at your wallet. One way to save money on gas is by keeping your car in good working condition. Getting regular oil changes and tune-ups helps reduce inefficiencies in your vehicle and can go a long way to saving you money at the pump.
Another way to save on fuel costs is by reducing your speed. Engines burn fuel most efficiently when running at the 1,300–1,500 RPM range, so ease off the gas, and watch your money pile up.
You can also offset the rising cost of gas by saving money on your Vermont car insurance cost
. That’s where Jerry
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