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With summer in full swing, gas prices are shifting into high gear.
States across the country are increasing their gas tax right as the Fourth of July weekend approaches — happy birthday, America. The time comes as pump prices are still 40% higher than in February.
And the state with the highest gas tax in the nation is set for another big increase. California is in the lead, according to the California Department of Tax and Fee Administration, but is still set to increase by 2.2 cents per gallon.
This takes California’s gas tax to 63.4 cents per gallon — and every cent counts. The move is in accordance with the Road Repair and Accountability Act of 2017, a state law mandating an annual inflation adjustment.
Starting on Wednesday, July 1, 2026, California drivers will notice the following:
This means that, combined with the state’s federal gas tax of about 18 cents, Washington drivers will pay nearly 75 cents per gallon in state and federal taxes.
- Gasoline (motor vehicle fuel): 63 cents per gallon, increased from 61 cents
- Diesel fuel: 48 cents per gallon, increased from 46 cents
- Aviation gasoline: 19.7 cents per gallon, increased from 19 cents
- Aircraft jet fuel: 2 cents per gallon, unchanged
The Golden State isn’t the only place hiking its gas tax. A fuel tax in Washington will rise from 55.4 cents to 56.5 cents per gallon.
The Evergreen State
Similarly, the newly implemented state law is tying fuel taxes to inflation. This will be historic for the state as it’s the first annual inflation adjustment required under a newly passed bill.
The law increased Washington’s gas tax by 6 cents per gallon back in 2025.
All drivers will begin paying the new rates as of July 1, 2026, along with an increased aircraft fuel tax starting November 1, 2026. The new aircraft tax will rise to 25 cents per gallon.
The state revealed that funds from the increase will support Washington’s highway programs, helping to construct and maintain roads, bridges and ferries.
The Old Line State
Maryland drivers are also set to see an increase on July 1 as the state’s annual gas tax adjustment comes into force.
The automatic increase raises the gas tax by 0.6 cents per gallon. This brings it to 46.6 cents per gallon under state law, which is tied to inflation.
For the average driver, the cost will increase by no more than 15 cents, as a single fill-up might be roughly 6 cents more for 10 gallons, 9 cents more for 15 gallons and 12 cents more for 20 gallons.
However, for those with daily commutes and multiple vehicles in the family, every single penny adds up.
The Garden State
New Jersey also rang in the new year with an increased gas tax back in December 2025. Garden State drivers saw a rise of 4.2 cents after a “thorough review of fuel consumption statistics and consultation with the Legislative Budget and Finance Officer.”
Lawmakers said the money will support the State’s Transportation Trust Fund for any critical transportation infrastructure needs. New Jersey broke down the tax like this:
From January 1, 2026, it rises from 34.4 cents to 38.6 cents for gasoline and from 38.4 cents to 42.6 cents for diesel fuel.
When combined with the Motor Fuels Tax — fixed at 10.5 cents for gas and 13.5 cents for diesel fuel — the total tax rates that motorists will pay for gas and diesel fuel will be 49.1 cents and 56.1 cents, respectively.
The increase will only get higher too, as the state will gradually raise the tax until 2029.
Dead on arrival
Oregon recently tried — and seemingly failed — to implement a gas tax after the Legislature passed House Bill 3991 back in September 2025. The bill would provide transportation funding for ODOT, cities, counties and transit districts around the state.
This means maintaining the “quality, safety, and reliability of Oregon’s roads, bridges and other parts of our transportation system,” according to the state.
It would have also increased their gas tax from 40 cents to 46 cents per gallon.
It all fell apart in December as petitioners submitted signatures to the Oregon Secretary of State to refer the bill to the voters. In May 2026, Oregon voters rejected the increase, so as of now, the state gas tax is still at 40 cents per gallon.
New Mexico also had a bill introduced called “Increase Gasoline Tax” that would change the tax rate from 17 cents per gallon to 20 cents per gallon. The legislation would have taken effect on July 1, 2026.
However, it was quickly killed just a month after being introduced.
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