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Fuel taxes make up a significant portion of the price you pay for gas at the pump. Gas and diesel are taxed by the federal government as well as state governments. That’s why gas is much more expensive in some states than others.
I’m Sheyna Steiner with the Bankrate.com personal finance minute.
The federal gasoline excise tax rate is 18.4 cents per gallon. States then add their own taxes and fees. The national average for state and federal taxes is 49.5 cents per gallon but in some states it’s much higher.
For instance, drivers in Connecticut pay 70.3 cents per gallon. The state levies a gas excise tax at 35.3 cents per gallon in addition to a state sales tax on gasoline.
New York is only slightly cheaper, with drivers there paying 69.1 cents per gallon.
Illinois has the third most expensive taxes on gasoline, with drivers paying 69 cents per gallon.
Right on the heels of Illinois comes the Golden State in fourth, drivers in California pay 68.9 cents per gallon for gas.
For more on this and other personal finance issues, visit Bankrate.com I’m Sheyna Steiner.