Overview
- Starting Jan. 1, 2026, the state fuel tax rises from 31 cents to about 52.4 cents per gallon as the 6% sales tax on gasoline is eliminated.
- State estimates and industry analysis indicate drivers should pay only a little over one cent more per gallon at the pump.
- All revenue from the per-gallon tax is restricted to transportation projects instead of the general fund.
- The new cents-per-gallon rate incorporates a 2.7% inflation adjustment set by the Treasury Department for 2026.
- Annual registration fees increase by about $50 for plug-in hybrids and about $100 for fully electric vehicles, projected to generate roughly $11 million in additional road funding.