Gov. Beshear freezes state tax on gas. How does Kentucky’s rate compare to other states?
Fuel prices continue to rise for Kentucky drivers, but Wednesday, Gov. Andy Beshear offered relief by halting an increase on the state’s gas tax, which would’ve raised the rate to 28 cents per gallon.
The action by Beshear means Kentucky’s gas tax will remain unchanged at 26 cents per gallon until at least mid-January 2023.
The average cost per gallon of gas in Kentucky sat at $4.55 Wednesday, according to AAA, not far off from the national average, which was $4.71 per gallon.
But how does Kentucky’s gas tax compare to other states?
A list of state motor fuel tax rates from the Federation of Tax Administrators (FTA) shows even if the increase were to go into effect as planned, Kentucky would still have one of the lowest rates in the region.
How does KY’s gas tax rate compare to its neighboring states?
Data compiled by the FTA shows Kentucky’s total gas tax rate is lower than six bordering states. Below are total state taxes and fees for gasoline:
Kentucky: 26 cents per gallon
Virginia: 26.2 cents per gallon
Tennessee: 27.4 cents per gallon
Indiana: 32 cents per gallon
West Virginia: 35.7 cents per gallon
Ohio: 38.5 cents per gallon
Illinois: 40.3 cents per gallon
Data from the American Petroleum Institute (API), the country’s largest trade group for the oil and gas industry, paints a similar picture.
What do gas taxes look like across the US?
The API, which took into account fuel consumption in each state, put the national average at 57.09 cents per gallon of gas.
The highest total state gas tax rate in the nation was Pennsylvania at 57.6 cents, according to the FTA. It was followed by California at 56.6 cents per gallon and Washington state at 49.4 cents per gallon.
The states with the lowest total state gas tax rates, according to the FTA, include Alaska at 8.95 cents per gallon, Hawaii with 16 cents per gallon and Mississippi coming in at 18.4 cents per gallon.
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This story was originally published June 2, 2022 at 3:41 PM.