As national gas prices edge closer to $5 per gallon, the federal gas tax draws renewed attention. President Donald Trump plans to suspend the 18 cents per gallon federal levy, a step that demands congressional action.
Energy Secretary Chris Wright voiced administration backing for price relief efforts, stating in a recent television interview: “All measures that can be taken to lower the price at the pump and lower the prices for Americans, this administration is in support of.”
Federal Gas Tax: Rate and History
The federal gas tax holds steady at 18 cents per gallon. Lawmakers last raised it in 1993 under President Bill Clinton. Adjusted for inflation, that 1993 rate equals roughly 8 cents in 2026 dollars.
Revenue from this tax partly funds the Highway Trust Fund. Experts estimate a tax suspension would drain at least $2.5 billion from federal coffers each month.
Total Taxes: Federal Plus State Fees
States layer on their own taxes and fees atop the federal portion. Drivers of regular gas face an average of 51 cents in combined taxes and fees per gallon nationwide. This breaks down to 18 cents federal and the balance state-imposed.
These levies account for about 11.5% of the typical pump price. Figures span from a low of 27 cents per gallon in Alaska to a high of 89 cents in California, excluding local assessments.
Price Impact of Tax Relief
A full pause on state and federal gas taxes would trim costs, yet analysis reveals pump prices would still run 35% above levels at the Iran conflict’s outset in late February. Average national prices have climbed over 50% since then.
Taxes form just one element of gasoline expenses. Recent AAA and US Energy Information Administration data as of May 11 highlight stark state variations, underscoring why relief measures offer limited short-term relief amid broader market pressures.
