Taxes can be one of the most significant reasons for gasoline price differences across the country – with total federal and state taxes varying from a low of about 26 cents a gallon in Alaska to 68 cents a gallon in Connecticut. The national average is roughly 49 cents a gallon, with federal tax amounting to 18.4 cents on every gallon. Some cities even add their own taxes as well.

Despite what seems like a big tax bite, motor fuel taxes in the United States are among the lowest in the world. In countries such as the United Kingdom and the Netherlands, taxes on gasoline are 60 percent or more of the pump price. For example, various taxes on gasoline in the United Kingdom add five dollars to the cost of every gallon.

For More Information
Fuel Taxes — State by State, a report by the American Petroleum Institute providing more details on what makes up gasoline taxes in each state.