Federal gas tax per gallon and state gas taxes explained: How much are you really paying?

With national gas prices creeping toward $5 per gallon, the federal gas tax is back in the spotlight. President Donald Trump has said that he intends to suspend the 18 cents per gallon federal gas tax but it is a move that would require an act of Congress. Energy Secretary Chris Wright also signaled the administration's support, saying on NBC News' "Meet the Press" on Sunday: "All measures that can be taken to lower the price at the pump and lower the prices for Americans, this administration is in support of."The federal gas tax could soon become a major political issue as gas prices near $5 per gallon nationwide. (Unsplash Representative Image)How much is the federal gas tax per gallon and where does the money go?The federal gas tax currently stands at 18 cents per gallon, according to NBC News. It has not been raised since President Bill Clinton signed the last increase into law in 1993. After adjusted for inflation, that 18 cents from 1993 would only be worth about 8 cents in 2026 dollars. A portion of the federal gas tax revenue goes toward the Highway Trust Fund. And suspending the tax could be expensive, with one estimate saying a gas tax holiday would cost at least $2.5 billion every month. Also Read: Fernando Mendoza secretly a Trump supporter? POTUS drops big claimOn top of the federal tax, states also add their own taxes and fees. In total, an average of 51 cents in taxes and fees is added to every gallon of regular gas pumped in America, per NBC News. Of that, about 18 cents goes to the federal government and the rest goes to the state. Across all states, taxes and fees make up about 11.5% of the total price paid per gallon on average. State and federal taxes and fees range from as low as 27 cents per gallon in Alaska to as high as 89 cents per gallon in California, with local taxes not factored into that data. Additionally, even if all state and federal taxes were suspended, an NBC News analysis found that gas prices would still average 35% more per gallon than they were at the start of the Iran war. As average gas prices nationwide have risen more than 50% since the war began at the end of February. Also Read: Why ShinyHunters hacked Canvas, Vimeo- Inside the group’s ‘pay or leak’ strategyHow much are the taxes and fees in your state?Here is a full breakdown of state and federal taxes and fees per gallon, along with the price per gallon without those taxes and fees as of May 11, according to AAA and US Energy Information Administration as cited by NBC News. While suspending the federal gas tax could lower prices at the pump, taxes are only one part of the overall cost of gasoline. According to NBC News’ analysis, gas prices would still remain significantly higher even if all state and federal gas taxes were removed.