The Tax Foundation says states tax fuel in several ways, including sales taxes, per-gallon excise taxes collected at the pump, taxes imposed on wholesalers (which are passed along to consumers in the form of higher prices), and a variety of operational taxes, such as underground storage tank fees, that are often charged to the retailer. To that end, they added up all different taxes & fees to calculate a total tax rate on gas for each state.
Not surprisingly, California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (62.2 cpg).Meanwhile, the lowest state gas tax rates can be found in Alaska at 9.0 cents per gallon, followed by Louisiana (16.9 cpg) and Oklahoma (17.0 cpg).
Click here to read the full report at the Tax Foundation.
