The week of the 4th of July is a popular week for many Americans to hit the road and see the wonders of the US. Yesterday several states increased their gas taxes, Minnesota was NOT one of those states, but several of our Midwest neighbors did. If you are taking a road trip still this summer, here are some states you might want to avoid, for gas savings.

Nerdwallet wrote about the gas tax increases; some were pretty big jumps based on the per-gallon tax.

California: 69.8 cents per gallon — the highest of all states.

 

Colorado: 27.9 cents per gallon.

 

Illinois: 67.1 cents per gallon.

 

Indiana: 56.1 cents per gallon.

 

Missouri: 27.5 cents per gallon.

 

Nebraska: 30.5 cents per gallon.

 

Virginia: 40.4 cents per gallon.

Yikes! I know depending on where you are going, or coming from it might be hard for you to avoid these states, but if you need to fill up, try to gas up before you enter, and hopefully, your tank will last you through until the next filling station in an adjoining state.

Nerdwallet explains why many states add a tax on top of Federal taxes:

"...most states levy multiple taxes and fees on a gallon of gas, including some combination of excise taxes (those imposed on goods, services and activities), sales taxes, environmental taxes and inspection fees..."

According to the Minnesota Department of RevenueAs of April 24, 2024, Minnesota's state gas tax was $0.285 per gallon, which includes a $0.25 tax rate for gasoline and special fuel products, plus a $0.035 per gallon debt service surcharge. This rate is included in the price at the pump, along with the federal gasoline tax of 18.4 cents per gallon.

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