Federal and State Gas Tax Rates Vary Widely as Suspension Proposals Gain Attention
President Trump and multiple states are considering suspending gas taxes as national prices hover around $4.50 per gallon, with some states like Georgia, Indiana, and Utah already taking action. An NBC News analysis found that taxes and fees account for an average of 11.5% of gas prices nationwide, ranging from 5% in Alaska to 17% in Illinois. Even if all federal and state taxes were suspended, gas prices would still be approximately 35% higher than pre-Iran war levels.
As gas prices remain elevated at around $4.50 per gallon nationally—more than 50% higher since the end of February—policymakers are exploring gas tax suspensions as a relief measure. President Trump has indicated intent to suspend the 18-cent federal gas tax, which would require Congressional approval, while several states have already acted independently. Georgia suspended its gas tax in March, Indiana announced a gas tax holiday, and Utah reduced its rate. An NBC News analysis reveals significant variation across states: taxes and fees range from 27 cents per gallon in Alaska to 89 cents in California, with the federal portion representing 18 cents per gallon. The Highway Trust Fund, which relies on federal gas tax revenue, supports highway and mass transit projects, and suspending the tax could cost an estimated minimum of $2.5 billion monthly. Notably, the federal gas tax has remained unchanged since 1993, when adjusted for inflation representing only 8 cents in 2026 dollars.
What different sources said
- NBC NewsLeft
Map: How much you pay in federal and state gas taxes
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