Estimated read time: 2-3 minutes
- Utah's gas tax will decrease to 37.9 cents per gallon on Jan. 1.
- California has the highest gas tax at 70.9 cents per gallon in 2025.
- Gas taxes serve as user fees, funding road construction and maintenance nationwide.
SALT LAKE CITY — While states and their leaders like to claim superiority in a variety of measurable areas — think safest, happiest, business climate, education, workforce, etc. — often the comparisons don't mean much to the average consumer.
Think of the price you pay at the pumps. People celebrate, bemoan, demand answers and typically let that drive whether they have a staycation or are ready to hit the roads.
Let's face it. Fuel for your vehicles can be alternatively liberating or a leading decision on how far you travel on four wheels.
Utah, according to the State Tax Commission, recorded its highest rate of state gas taxes at 38.5 cents per gallon in 2025, but the rate is expected to drop come Jan. 1 to 37.9 cents.
Jason Gardner, deputy director of the Utah State Tax Commission, said gas tax prices are based on the last 36 months of the price that fuel can be purchased at refineries in Utah. The price point that you pay at the pump is determined by state law, but it is set at a limit of 14.2% based on the price of wholesale gas.
Sen. John Curtis, R-Utah, had this to show on X about gasoline prices in certain parts of Utah.
Utah nice is pulling over, smiling for the camera, and letting folks know gas is under $2.00 in Fillmore. pic.twitter.com/bwhLQoS18U
— Senator John Curtis (@SenJohnCurtis) December 30, 2025
Ouch, depending on where you fuel up
Policies differ in other states, depending on renewable fuel standards and other tax policy considerations.
The nonprofit Tax Foundation says:
"Gas taxes affect the lives and finances of most Americans — a price paid for the privilege of driving on government roads. The gas tax is meant to function as a user fee, charging drivers to fund the construction and maintenance of the roads they use. User fees attribute the costs of government services to those who use them, avoiding charging people taxes for things they do not want or use. Transportation services particularly benefit from a user-fee pay structure."
Here is a breakdown of the states with the highest gas tax rates based on cents per gallon as of 2025.
- California at 70.9
- Illinois at 66.4
- Washington at 59
- Pennsylvania at 58.7
- Indiana at 54.5
Other state high rollers in the top sphere of gas taxes include Michigan, New Jersey, Maryland, Virginia and Rhode Island.
The foundation explains how rates come about, and why.
"States levy taxes on fuel in several different ways. Per gallon excise taxes on purchases at the pump are most common, while some states also include additional sales taxes or taxes on wholesalers or retailers that further increase prices for consumers. Most states also levy additional fees, like underground storage tank fees, that add to prices at the pump. The total tax burden on gasoline from these various taxes and fees varies significantly for drivers across the U.S.," the foundation asserted.
According to the organization, Utah sits at No. 14, but the tax commission is debating that number.
Regardless, what you pay at the pump is not only driven by the price of crude, but state tax policies that are in place.
