Summer Gas Prices on the Rise Due to New Tax Increases

As summer heats up, so do gas prices, which are climbing steadily. With the Fourth of July weekend just around the corner, several states are increasing their gas taxes. It’s quite the birthday present for America, isn’t it? Currently, prices at the pump are about 40% higher than they were back in February.

Leading the charge in gas taxation is California, where another significant increase is on the horizon. The state currently has the highest gasoline tax in the U.S., and it’s projected to rise by 2.2 cents per gallon, as reported by the California Department of Taxation and Fees Administration.

This increase will push California’s gas tax to 63.4 cents per gallon. It’s interesting to note that this adjustment is part of the Highway Repair Responsibility Act of 2017, which mandates annual inflation updates. Starting on July 1, 2026, California drivers will notice changes like:

• Gasoline (motor fuel): 63 cents per gallon, up from 61 cents.
• Diesel fuel: 48 cents per gallon, an increase from 46 cents.
• Aviation gasoline: 19.7 cents per gallon, previously 19 cents.
• Aircraft jet fuel: 2 cents per gallon, remaining unchanged.

But California isn’t alone. Washington State is also raising its gas tax, with an increase from 55.4 cents to 56.5 cents per gallon. This new law ties fuel taxes to inflation and marks a significant change—the first annual adjustment required under recent legislation.

For Maryland residents, an increase will take effect on July 1 as well, due to the state’s annual gas tax adjustment, which will rise by 0.6 cents per gallon, bringing it to 46.6 cents. For everyday drivers, this translates to a slight increase of about 15 cents per fill-up. It may not seem like a lot, but for daily commuters, every bit adds up.

New Jersey Adjusts Fuel Taxes

New Jersey drivers will also see some changes, following a gas tax increase that took effect in December 2025. The rate climbed by 4.2 cents, thanks to a thorough review of fuel consumption trends and consultations with budget officials. Starting January 1, 2026, gasoline taxes will rise from 34.4 cents to 38.6 cents, while diesel will go from 38.4 cents to 42.6 cents. This change is part of a gradual increase planned until 2029.

Oregon’s Proposed Gas Tax Hits a Snag

In contrast, Oregon recently experienced a setback with its attempt to implement a gas tax increase after passing House Bill 3991 in September 2025. This bill aimed to fund transportation projects but faced pushback. When petitioners managed to collect enough signatures to put the measure to a vote, the proposal was ultimately rejected by voters in May 2026, leaving the state’s gas tax at 40 cents per gallon for now.

Meanwhile, New Mexico also tried to pass a gas tax increase from 17 cents to 20 cents, scheduled for July 1, 2026. However, this bill was swiftly terminated just a month after it was proposed.