State by State: Here's How Much You Would Save If the Federal Gas Tax Is Suspended
· Telemundo McAllen (KTLM)
As the national average gas price approaches $5 per gallon, one state has already suspended its fuel tax, and now President Donald Trump and his cabinet are discussing doing the same. Although a suspension would provide some relief, an NBC News analysis shows that gas prices would still average 35% more per gallon than at the start of the war with Iran, even if all state and federal taxes were suspended. The average gas price nationwide has risen more than 50% since the war began in late February. Trump told reporters on Monday that he intends to suspend the federal gas tax of 18 cents per gallon, which would require a law from Congress. Democrats in the House and Senate proposed measures to suspend the gas tax in March. "Any measures that can be taken to lower the price at the pump and reduce costs for Americans have the support of this government," said Energy Secretary Chris Wright on NBC News' "Meet the Press" on Sunday. On average, 51 cents in taxes and fees are added to each gallon of regular gasoline sold in the United States. Part of this revenue goes to the state imposing the tax, and about 18 cents goes to federal coffers. Georgia suspended its gas tax in March, with that suspension set to expire on May 19. The burden of these taxes and fees varies: 5% of the cost per gallon in Alaska comes from taxes and fees, while 17% of the price paid by residents in Illinois comes from state and federal taxes and fees, according to an NBC News analysis. On average, across all states, 11.5% of the price paid per gallon is due to taxes and fees. Taxes and fees range from 27 cents per gallon in Alaska to 89 cents per gallon in California, not including local taxes. Part of the revenue from the federal gas tax goes to the Highway Trust Fund, which is used to finance road and public transportation projects. One estimate placed the cost of a temporary gas tax exemption at a minimum of $2.5 billion per month. In March, Trump mentioned in a cabinet meeting that he had "thought" about suspending the federal gas tax. The federal gas tax has not been increased since Bill Clinton signed the last hike in 1993. The 18 cents per gallon in 1993, adjusted for inflation, would be equivalent to 8 cents in 2026 dollars.
AI summary · Source: Telemundo McAllen (KTLM) →
