Overview
- The per-gallon levy rises from 31 cents to roughly 52–52.4 cents on Jan. 1, reflecting a 2.7% inflation adjustment set for 2026.
- Unlike the former sales tax, all fuel-tax collections are legally reserved for roads and bridges under the state’s transportation funding plan.
- Industry experts, including GasBuddy’s Patrick DeHaan, project only a slight net pump increase, and actual prices will vary with wholesale costs and retail margins.
- Annual registration fees increase by about $100 for fully electric vehicles and $50 for plug-in hybrids, an estimated $11 million boost for road funding.
- Lawmakers describe the shift as broadly revenue neutral for drivers, and the cents-per-gallon design means drivers pay relatively more when prices are low, as broader budget changes are projected to add about $1.1 billion in FY2026 with some funding uncertainty.