Gas sales tax and environmental fees by state
Twelve states apply general sales tax on top of motor fuel; four (California, Washington, Oregon, Illinois) layer environmental fee programs that quietly add 20-40 cents per gallon. New York and New Jersey both add Petroleum Business Tax / Gross Receipts variants. [Tax Foundation · 31 Aug 2026] [ARB · 31 Aug 2026]
The double-tax states
California, Connecticut, Georgia, Hawaii, Illinois, Indiana, Michigan, New York, and a small group of others apply general sales tax to gasoline alongside the headline excise.
California: cap-and-trade plus LCFS
The Air Resources Board cap-and-trade allowance and Low Carbon Fuel Standard credit obligations add an estimated 25-40 cents per gallon to California pump prices. [ARB · 31 Aug 2026]
Washington: Climate Commitment Act
WA's CCA allowance pass-through adds 30-40 cents per gallon since launch in 2023. Pump prices climbed accordingly; Washington is now consistently in the national top three.
Oregon: Clean Fuels Program
Oregon's LCFS-equivalent program adds a smaller but steady wedge - around 5-15 cents per gallon depending on credit prices.
New Jersey: Petroleum Products Gross Receipts Tax (PPGRT)
Adjusts annually each October.
Pennsylvania: Oil Company Franchise Tax (OFT)
The wholesale-level rate is the largest single component of one of the country's highest per-gallon excises, second only to California.
Related
state excise · California · Washington · Oregon · NJ · NY