With national gas prices nearing $5 per gallon, the federal gas tax is under scrutiny. The 18 cents per gallon tax, last increased in 1993, is a contentious issue with President Donald Trump considering a suspension. However, this move would require Congressional approval and could cost $2.5 billion monthly.
On top of the federal tax, states add their own taxes and fees, averaging 51 cents per gallon. Of this, 18 cents goes to the federal government, while the rest goes to the state. State and federal taxes range from 27 cents in Alaska to 89 cents in California.
Even if all state and federal taxes were suspended, gas prices would still average 35% more per gallon than at the start of the Iran war. A breakdown of state and federal taxes per gallon, along with prices without taxes, is available.
