The United States federal excise tax on gasoline is 18.4 cents per gallon and 24.4 cents per gallon for diesel fuel. The federal tax was last raised October 1, 1993 and is not indexed to inflation, which increased by a total of 77 percent from 1993 until 2020.
Why does fuel have an excise tax?
Fuel excise is used to help pay for our roads. Like almost all federal taxes, fuel excise goes into the Government’s general revenue, which is then drawn upon to fund our transport infrastructure. It is the contribution that you, as a motorist, make to the development and maintenance of our road transport system.
What country has the highest gas tax?
Switzerland, Iceland, Mexico, and the United States are the only countries with higher taxes on diesel than gasoline. In general, European countries tend to tax petroleum fuels at the highest level globally.
What kind of taxes do you pay on gasoline?
Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and make up a relatively small and volatile portion of state and local tax collections. The average tax rate is the total tax paid divided by taxable income.
How much is the gas excise tax per gallon?
It has since been raised 10 times to its current amount of 18.3 cents per gallon for gasoline (and 24.3 cents per gallon for diesel). Included in the federal gasoline excise tax is a 0.1 cent per gallon Leaking Underground Storage Tank (LUST) fee, which is added to both the tax/gallon on gasoline and diesel fuel.
Is there a tax on gasoline in Tennessee?
A “special privilege tax” is imposed on all petroleum products at a rate of $0.01 per gallon. Gasoline is exempt from the statewide sales tax. Funds from all combined fuel taxes, including the “special privilege tax,” are split between cities and counties, the state general fund and the Tennessee Department of Transportation.
Is there a fee on the price of gasoline?
Imposes a “Motor Fuel Transportation Infrastructure Assessment” fee of 2 percent on the retail price of gasoline and 3 cents-per-gallon on diesel. Motor fuel subject to the gasoline tax is exempted from the general sales tax.
