Goodbye to cheap gas in the U.S. – These are the nine states where taxes have gone up since July 1 with prices as high as $61.2 per gallon

Gas is not as cheap as it used to be—and if you live in one of these nine states, you are probably already feeling it. Starting July 1, 2025, several states increased their gas taxes, just in time for the summer travel season.

While fuel prices across the country have dropped slightly compared to last year, these new taxes are pushing prices back up for many Americans. If you drive daily or have a long commute, this change could definitely stretch your monthly budget.

So let us break it down and show you exactly where the increases are happening, how much more you could pay, and why it matters to you.

What states increased gas tax in july 2025?

As of July 1, nine states officially raised their gas taxes. This means you are now paying more every time you fill up your tank.

Here are the states and the new changes:

• California
  
  • Gas tax increased by 1.6 cents
    
  • Total state gas tax is now 61.2 cents per gallon
    
  • This is the highest state gas tax in the country
    
  • Gov. Gavin Newsom’s office says rumors that the increase would raise pump prices by 65 cents are false
    
• Illinois
  
  • Gasoline prices are going up by 48.3 cents per gallon
    
  • Illinois drivers already deal with multiple fees and local taxes, making this one of the most expensive states to buy gas
    
• Indiana
  
  • Tax increased from 35 cents to 36 cents per gallon
    
  • This is an inflation adjustment according to the Indiana Department of Revenue
    
• Mississippi
  
  • State gas tax increased by 3 cents, now at 21 cents per gallon
    
  • Mississippi still has one of the lower tax rates compared to other states
    
• Missouri
  
  • Tax increased by 2.5 cents, from 27 to 29.5 cents per gallon
    
  • This is part of a gradual tax hike plan passed in recent years
    
• Nebraska
  
  • Gas tax went up by 1.4 cents, now at 31.8 cents per gallon
    
  • The Department of Revenue says this supports infrastructure funding
    
• Rhode Island
  
  • Gas tax increased by 1 cent, now 38 cents per gallon
    
  • This is the first increase in years for the state
    
• Virginia
  
  • Tax increased from 30.8 to 31.7 cents per gallon
    
  • Also includes a 9-cent increase in sales tax on gasoline
    
• Washington
  
  • Gas tax went up from 49.4 to 55.4 cents per gallon
    
  • This brings Washington close to California’s levels
    

Why is gas tax going up in these states?

Most states adjust gas taxes twice a year—on January 1 and July 1—to keep up with inflation or to support state-funded projects.

These taxes pay for:

• Road repairs and maintenance
  
• Highway construction
  
• Public transportation
  
• Bridge safety inspections
  

So even though you are paying more, that money is usually going back into services you use every day.

But for many Americans, especially families or lower-income earners, every extra cent at the pump adds up fast.

How will this affect you financially?

Let us say you fill up your car once a week with 15 gallons of gas.

• If you live in California, that is 24 cents more each month
  
• In Illinois, you might pay over $2 extra every time you refuel
  
• Even in Indiana, that is an extra 60 cents per month
  

It might not seem like much at first, but over the course of a year, these small increases can mean hundreds of dollars added to your fuel expenses.

What can you do about it?

• Track prices with apps like GasBuddy or Waze to find cheaper stations nearby
  
• Consider carpooling or using public transit more often
  
• Check your tire pressure and keep up with maintenance to improve fuel efficiency
  
• Look into fuel rewards programs offered by grocery stores and gas chains
  

Gas tax hikes are not fun, but they are not going anywhere. The best thing you can do is stay informed and plan ahead to keep your budget in check.

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