Gasoline and diesel taxes are increasing in multiple U.S. states, taking effect as the summer driving season gets underway. These changes come at a time when pump prices remain elevated compared to earlier in the year.
California is implementing a new gas tax adjustment. Effective July 1, 2026, the state’s tax on gasoline will rise to 63.4 cents per gallon, an increase of 2.2 cents. The tax on diesel fuel will increase to 48 cents per gallon, up from 46 cents, and aviation gasoline will see a 2-cent increase to 19.7 cents per gallon. These adjustments are mandated by the Road Repair and Accountability Act of 2017, which requires annual inflation adjustments.
In Washington, a fuel tax increase took effect on July 1, 2026, raising the rate from 55.4 cents to 56.5 cents per gallon. This is the first annual inflation adjustment required by a new state law. An increased aircraft fuel tax is scheduled to take effect November 1, 2026, rising to 25 cents per gallon. Funds generated from these increases are designated to support Washington’s highway programs, including the construction and maintenance of roads, bridges, and ferries.
Maryland drivers also experienced a gas tax increase on July 1 due to the state's annual adjustment. The tax rose by 0.6 cents per gallon, bringing the total state gas tax to 46.6 cents per gallon, tied to inflation. This increase is expected to add approximately 15 cents to the cost for the average driver on a single fill-up.
New Jersey saw its gas tax rise by 4.2 cents on January 1, 2026, following a review of fuel consumption statistics. The tax for gasoline increased from 34.4 cents to 38.6 cents per gallon, and for diesel fuel, from 38.4 cents to 42.6 cents per gallon. Combined with the existing Motor Fuels Tax, the total tax rates for motorists are now 49.1 cents for gasoline and 56.1 cents for diesel fuel. New Jersey plans to continue gradually raising the tax until 2029 to support the State’s Transportation Trust Fund.
Meanwhile, legislative efforts to increase gas taxes in other states have stalled. In Oregon, House Bill 3991, which would have raised the gas tax from 40 cents to 46 cents per gallon, was rejected by voters in May 2026 after a referendum. A proposal in New Mexico to increase the gasoline tax from 17 cents to 20 cents per gallon was also quickly defeated shortly after its introduction.