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How Gas Taxes in Minnesota Compare to Other States

imageforentry38Last June, the average price of a gallon of gasoline in the United States exceeded $5 for the first time in the nation’s history. The two biggest causes were the gradual end of the pandemic and the Russian invasion of Ukraine, resulting in Western nations imposing embargoes on Russian oil, with the U.S. banning Russian oil entirely in March 2022.

Since then, gas prices have fallen back down, but remain well above any pre-pandemic monthly average going back more than five years. Depending on the state, the average amount Americans are paying at the pump varies from a little over $3 to nearly $5. That variance is largely the result of different transportation and refining costs and, of course, taxes.

While the federal government levies a tax of 18.4 cents on every gallon of gas sold in the United States, each state adds on its own excise tax on top of that. State-imposed gas taxes and fees can account for anywhere from 2.3% of the total cost of gas to 16.5%, depending on where you live.

In Minnesota, gasoline is taxed at a rate of 28.50 cents per gallon, the 23rd highest among states. With a gallon of gas costing an average of $3.42 in Minnesota in mid-April 2023, state gas taxes account for about 8.3% of the total cost of fuel.

Based on data from the Federal Highway Administration, fuel consumption was around 786 gallons per licensed driver in 2021, meaning the typical motorist spent an estimated $224 in state gas taxes alone that year.

Data on average state gas taxes as of April 2023 from business tax compliance platform IGEN. State gas taxes do not include the federal gas tax of 18.4 cents per gallon. Supplemental data on the average price of regular gas by state came from AAA and is current as of April 11, 2023. Data on motor fuel consumption and the number of licensed drivers used to calculate annual motor fuel consumption per licensed driver by state came from the Federal Highway Administration and is for 2021.

Rank State Gasoline tax (cents per gal.) Avg. cost of a gal. of regular gas; April 2023 ($) State gas taxes as pct. of gas price (%) State gas tax spending per capita ($)
1 Pennsylvania 61.10 3.70 16.5 419
2 California 53.90 4.89 11.0 342
3 Washington 49.40 4.40 11.2 284
4 Maryland 42.70 3.54 12.1 295
5 Illinois 42.30 3.98 10.6 296
6 New Jersey 42.10 3.40 12.4 283
7 North Carolina 40.50 3.44 11.8 329
8 Ohio 38.50 3.66 10.5 303
9 Oregon 38.00 3.99 9.5 275
10 West Virginia 37.20 3.58 10.4 433
11 Utah 36.40 3.67 9.9 295
12 Florida 35.23 3.58 9.8 243
13 Rhode Island 34.00 3.36 10.1 196
14 Indiana 33.00 3.59 9.2 322
14 Montana 33.00 3.31 10.0 341
16 Vermont 32.37 3.45 9.4 241
17 Idaho 32.00 3.55 9.0 303
18 Georgia 31.20 3.38 9.2 257
19 Wisconsin 30.90 3.48 8.9 253
20 Maine 30.00 3.43 8.8 240
21 Nebraska 29.00 3.42 8.5 293
22 Michigan 28.60 3.61 7.9 199
23 Minnesota 28.50 3.42 8.3 224
24 Alabama 28.00 3.28 8.5 298
24 South Carolina 28.00 3.32 8.4 265
24 South Dakota 28.00 3.43 8.2 322
24 Virginia 28.00 3.46 8.1 249
28 Iowa 27.00 3.41 7.9 279
29 Kentucky 26.60 3.41 7.8 274
30 Tennessee 26.00 3.31 7.9 239
31 Arkansas 24.60 3.19 7.7 245
32 Kansas 24.00 3.23 7.4 211
32 Massachusetts 24.00 3.35 7.2 146
32 Wyoming 24.00 3.34 7.2 411
35 Delaware 23.00 3.48 6.6 158
35 Nevada 23.00 4.24 5.4 176
35 North Dakota 23.00 3.38 6.8 294
38 New Hampshire 22.20 3.30 6.7 155
39 Colorado 22.00 3.50 6.3 152
39 Missouri 22.00 3.26 6.7 223
41 Connecticut 20.00 3.43 5.8 131
41 Louisiana 20.00 3.28 6.1 176
41 Texas 20.00 3.26 6.1 222
44 Oklahoma 19.00 3.28 5.8 213
45 New York 18.15 3.56 5.1 104
46 Arizona 18.00 4.42 4.1 127
46 Mississippi 18.00 3.14 5.7 221
48 New Mexico 17.00 3.55 4.8 204
49 Hawaii 16.00 4.78 3.3 82
50 Alaska 8.95 3.85 2.3 68
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