Research Areas
Gasoline Taxes, Tolls, and Transportation Charges
The first U.S. state to levy a gasoline tax was Oregon, which enacted a 1-cent per gallon tax in February 1919. During the following decade every U.S. state and the District of Columbia followed suit. In 2006 the average state gas tax was 20.8 cents per gallon. The federal gasoline tax was created with the Revenue Act of 1932, and began as a temporary levy with a rate of 1 cent per gallon. Over the years the tax has increased significantly, and in 2006 stood at 18.4 cents per gallon. The combined burden of federal, state and local gas taxes costs American drivers an average of 45.9 cents on every gallon purchased in 2006.
Additional questions about gasoline taxes, tolls, and transportation charges? Contact us at (202) 464-6200.
Articles from the Tax Foundation
- State Sales, Gasoline, Cigarette, and Alcohol Tax Rates by State, 2000-2009, July 10, 2009
- Who Pays for Climate Policy? New Estimates of the Household Burden and Economic Impact of a U.S. Cap-and-Trade System, by Andrew Chamberlain, March 16, 2009
- Federal Excise Tax Rates, 1944-2008. Selected Years, November 9, 2008
- The Distributional Impact of Windfall Profits Taxes and a Gas Tax Holiday, by Gerald Prante, May 2, 2008
- Federal Gasoline Excise Tax Rate, 1932-2008, April 30, 2008
- Oil Profits and Taxes, 1981-2006 , April 2, 2008
- The Growth in Federal Gasoline Taxes, 1932-2005, March 11, 2008
- Paying at the Pump: Gasoline Taxes in America, by Jonathan Williams, October 16, 2007
- Questions to Ask Before Raising the Federal Gas Tax, by Gerald Prante, August 27, 2007
- Toll Revenue vs. Motor Fuel Taxes by State, 2005, June 11, 2007
- State Motor Fuel Tax Collections by State, 2006, June 7, 2007
- Fraction of Each Quintile's Total Tax Burden Accounted for by Each Type of Tax, Calendar Year 2004 , April 1, 2007
- Average Dollar Tax Burdens by Type of Federal Tax, Per Household, Calendar Year 2004 , April 1, 2007
- Estimating Federal Tax Burdens for Major City Areas, Counties, and U.S. Congressional Districts, by Andrew Chamberlain and Gerald Prante, March 22, 2007
- Gasoline Taxes: User Fees or Pigouvian Levies?, by Jonathan Williams, November 27, 2006
- California's Prop. 87 Fails Economics 101, by Jonathan Williams, November 3, 2006
- Gas Tax Holidays No Cause for Celebration, by Jonathan Williams and Andrew Chamberlain, July 20, 2006
- Temporary Gasoline Tax Holidays: Relief for Motorists or Poor Tax Policy?, by Jonathan Williams and Andrew Chamberlain, July 10, 2006
- Resources on Oil Industry Windfall Profit Taxes, May 2, 2006
- Crude Economics: Windfall Profits Taxes Hurt Consumers at the Pump, by Jonathan Williams, April 29, 2006
- Federal Excise Tax Collections, 1940-2006, April 28, 2006
- The Windfall Profit-Taxers Are Back, by Jonathan Williams, April 25, 2006
- Audio Commentary: Are Windfall Profits Taxes Good Economics?, by Scott A. Hodge, February 1, 2006
- Who Profits at the Pump?, by Scott A. Hodge and Jonathan Williams, November 16, 2005
- Oil Company Profits and Tax Collections: Does the U.S. Need a New Windfall Profits Tax?, by Scott A. Hodge and Jonathan Williams, November 9, 2005
- State and Federal Treasuries "Profit" More from Gasoline Sales than U.S. Oil Industry, by Scott A. Hodge and Jonathan Williams, October 26, 2005
- Local, State and Federal Gas Taxes Consume 45.9 Cents Per Gallon on Average, by Jonathan Williams, September 13, 2005
- Dates of Adoption of Major State Taxes, January 1, 2005
- Federal Excise Taxes and the Distribution of Taxes Under Tax Reform, by J. Scott Moody, January 1, 1999
- Excise Taxes and Sound Tax Policy, by John R. McGowan, May 1, 1997
- The Use and Abuse of Excise Taxes, by Dwight R. Lee, Ph.D., May 1, 1997
- Tax Reform and Excise Tax Policy Fundamentals Conference Proceedings, January 10, 1997
- The Taxation of Energy in the U.S.: Who Pays?, by Arthur P. Hall, Ph.D., March 1, 1994
- The Price of Mobility: Gasoline Taxes in America, by Chris R. Edwards, June 1, 1993
- Tax Review: The Oil Excise Tax: Another Government Windfall, by David I. Meiselman, October 1, 1979
- Links to Other Tax Policy Resources, December 31, 1969