US fuel tax rates: the federal tax plus 48 state diesel rates

The federal fuel tax rate is 24.4 cents a gallon for diesel and kerosene and 18.4 cents for gasoline. Both figures include a 0.1-cent tax for the Leaking Underground Storage Tank (LUST) Trust Fund, under 26 U.S.C. 4081.

The tax is imposed when fuel is removed from a terminal or refinery, entered into the country, or sold, so it is already in the price when diesel reaches the pump. There is no federal fuel tax return for a carrier to file.

The rates are written into the law in cents, not as a percentage of the price. Federal fuel tax per gallon stays the same whether diesel costs three dollars or six.

What is the LUST tax on fuel?

The LUST tax is the 0.1 cent per gallon that funds the federal Leaking Underground Storage Tank Trust Fund. It is the only federal tax on dyed diesel, and the IRS notes it is generally not refunded when you claim a credit for fuel used off the highway.

Will the federal rate change?

Under section 4081(d), the 24.3-cent diesel and 18.3-cent gasoline rates drop to 4.3 cents after September 30, 2028, and the LUST tax stops on October 1, 2028. Congress has moved that date before: a 2021 law pushed it from 2022 to 2028.

State fuel tax rates differ because each state sets its own, and many do not stop at one flat number per gallon. Three patterns explain most of the spread in the table.

• Rates that move. By our count of IFTA's 2026 files, 17 states changed their diesel rate: 7 in the first quarter, 3 in the second, and 7 in the third. New Jersey rose from 51.9 to 56.1 cents; Illinois and New York went down.
• Rates with more than one part. California's 97.9 cents is its 48.2-cent diesel excise plus a 49.7-cent second component, as listed by the California Department of Tax and Fee Administration.
• Surcharges on top. Kentucky adds 10.5 cents and Virginia 14.3 cents on diesel. The surcharge is not paid at the pump: you pay it on the IFTA return, on the gallons used in that state.

Some states also split rates by vehicle. Arizona's 26-cent diesel rate applies to heavy trucks, while vehicles with fewer than 3 axles and a declared weight under 26,001 pounds pay 18 cents.

Is fuel tax the same as sales tax on fuel?

No. Fuel tax is an excise charged by the gallon, while a sales tax is a percentage of the price. Some states charge both. In California, for example, diesel also carries a 13% sales tax rate plus district taxes for July 2026 through June 2027, on top of the per-gallon excise.

Alaska, Hawaii, and the District of Columbia are not in the IFTA rate table, because IFTA's members are the 48 contiguous states and the 10 Canadian provinces. Fuel tax in those three places is paid under their own rules, not on the IFTA return.

Oregon is in the table with no diesel rate because heavy trucks there pay a weight-mile tax instead. That is set to change: from July 1, 2029, the Oregon Department of Transportation says heavy trucks will start paying fuel tax alongside reduced weight-mile rates, and Oregon will become a full IFTA participant.

A few states also tax heavy trucks by the mile on top of fuel tax, such as Kentucky with its KYU weight-distance tax. Those taxes have their own returns and do not appear in any fuel tax rate table.

Running interstate without an IFTA license? You still owe each state's fuel tax, settled trip by trip with a temporary fuel permit instead of a quarterly return.