Recent Hikes in Gas Taxes Across Several States

Aug 25, 2023 By Triston Martin

Are you feeling the pinch at the pump? More and more of us are, as gas taxes have been steadily increasing across several states in recent months. With an already expensive form of transportation, this new development is certainly hitting commuters hard. But why exactly have these rates gone up so significantly? What does it mean for drivers? And what can be done to alleviate some of the burden caused by higher prices at the gas station? In this blog post, we'll take a look at what has recently happened with hikes in gas tax throughout several select states, analyze how they may affect drivers like you, and offer strategies on how to save money despite rising costs. So let's dive right into all things related to gas taxes.

Overview of recent hikes in gas taxes across several states:

Gas taxes have been rising throughout several states in recent months, with the highest increases occurring in Oregon (17.2 cents per gallon), South Dakota (7.3 cents per gallon), New York (4.9 cents per gallon) and California (2.5 cents per gallon). Many other states have also seen slight increases of 1-2 cents per gallon as well. While on the surface this may not seem like a lot, it can quickly add up to large amounts of money over the long run for regular drivers.

In Oregon, for example, the new tax is expected to generate $300 million in revenue for state infrastructure and public transportation projects in 2021 alone - meaning that drivers will be paying more than just what they see at the pump. However, in some states, like South Dakota, the hike is more of a correction than an increase - with taxes being raised from 8.2 cents to 0.6 cents per gallon back up to 7.3 cents in order to bring them in line with other state's' rates.

How Higher Gas Taxes May Affect Drivers?

The most obvious consequence of higher gas taxes is the immediate increase in prices at the pump seen by drivers across all affected states. This can be particularly hard on people who rely on cars to get to and from work, such as those living in rural areas, and may force them to find alternative (and potentially more expensive) forms of transportation.

Higher taxes may also mean increased prices for goods and services in certain areas as businesses pass on the burden of higher fuel costs to their customers. For example, families living in California can expect to see higher prices on food, clothing, and other necessities due to the recent hikes in gas taxes.

Ways To Save Money Despite Higher Gas Prices:

  • Carpool: Consider carpooling with coworkers, friends, or family members in order to cut down on gas costs. You can also look into other forms of ride-sharing such as Lyft and UberPool if there are not many people you can share a car with.
  • Drive Efficiently: If possible, try to drive more efficiently by avoiding aggressive acceleration or braking, as well as reducing your speed when going uphill. You can also combine errands into one trip to save gas money.
  • Take Public Transportation: Taking public transportation may be a good option for some people, depending on their location and needs. Many cities have buses and trains that can get you where you need to go without using any gas at all.
  • Choose Gas Stations Wisely: Consider shopping around for the best prices when it comes to gas, and if you drive a car with a flex-fuel engine, check out stations that offer E85 ethanol fuel which can sometimes be up to 25% cheaper than regular gasoline.
  • Look Into Tax Breaks: If available in your state, look into tax breaks or other incentives for driving an electric car or hybrid vehicle, as these can help offset some of the costs associated with higher taxes.

Investigating differences in gas tax rates between states:

Gas Tax rates can differ significantly from one state to another, which is why it is important to know the rate of your own state before making any decisions regarding transportation and fuel-related purchases. For example, as of 2021 some of the highest gas tax states in the US were Pennsylvania (58.7 cents per gallon), California (49.8 cents per gallon), and New York (48.6 cents per gallon), while the lowest rates were found in Alaska (14.4 cents per gallon), Oklahoma (17.3 cents per gallon) and Missouri (17.3 cents per gallon).

It is also important to note that states can change their gas tax rates at any time, so it is always a good idea to stay up to date on any changes that may impact your own state.


Gas taxes can have a significant impact on drivers, from increases in prices at the pump to higher costs for goods and services due to businesses passing on their own fuel-related expenses. It is important to be aware of the gas tax rate in your state, as well as any changes that may be occurring, so you can make informed decisions about how much money you are spending on fuel. Additionally, there are a number of strategies that you can use to help save money despite rising gas prices, such as carpooling, driving more efficiently, taking public transportation and looking into tax breaks or other incentives for electric or hybrid vehicles.


How much have gas taxes recently gone up in Oregon?

Gas taxes have recently increased by 17.2 cents per gallon in Oregon.

How can I save money despite higher gas prices?

There are a number of strategies that you can use to help save money despite rising gas prices, such as carpooling, driving more efficiently, taking public transportation and looking into tax breaks or other incentives for electric or hybrid vehicles.

What is the highest gas tax rate in the US?

The highest gas tax rate in the US as of 2021 is 58.7 cents per gallon in Pennsylvania. That wraps up our overview on recent hikes in gas taxes and how they may affect drivers. We hope this article has been helpful in helping you understand the situation better, and make informed decisions when it comes to transportation-related costs.

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