Going Green Saves You Green on Your Taxes (1440 x 600)
Going Green Saves You Green on Your Taxes (411 × 600 px)

Earth Day 2026: Simple Ways To Go Green and Save Money

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Earth Day 2026 is April 22, and this year’s theme is Our Power, Our Planet.

Taxes may not be the first thought when you think about the environment, but they’re more connected than you think. In recognition of this year’s theme, we explore the correlation between gasoline tax rates and carbon emissions by state and what everyday environmental choices can make a difference at home.

States with the highest gasoline taxes

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Gasoline taxes vary widely from state to state, as well as the variance between per-gallon prices in different areas. 

Here are the ten states with the highest gas taxes (combining both the 18.4 cents per gallon federal tax and the individual state and other taxes) as of January 2026:

  • California: 89.32 cents/gal
  • Illinois: 84.80 cents/gal
  • Pennsylvania: 77.10 cents/gal
  • Washington: 77.44 cents/gal
  • Indiana: 71.90 cents/gal
  • Michigan: 71.80 cents/gal 
  • Maryland: 64.61 cents/gal 
  • New Jersey: 67.55 cents/gal
  • North Carolina: 59.65 cents/gal
  • Virginia: 60.00 cents/gal

States with the lowest gasoline taxes

Here are the ten states with the lowest cumulative gasoline prices:

  • Alaska: 27.35 cents/gal 
  • Mississippi: 39.80 cents/gal
  • Hawaii: 36.90 cents/gal 
  • New Mexico: 37.28 cents/gal 
  • Arizona: 37.40 cents/gal 
  • Texas: 38.40 cents/gal 
  • Oklahoma: 38.40 cents/gal 
  • Louisiana: 39.33 cents/gal 
  • Delaware: 41.40 cents/gal 
  • North Dakota: 41.43 cents/gal 

Most cumulative emissions

Citizens and environmental scholars often wonder if high gasoline taxes actually discourage driving and make a visible dent in a state’s carbon footprint. Evidence is inconclusive, but we can look to the states with the highest and lowest cumulative emissions for clues. According to the U.S. Energy Information Administration, the following ten states had the most energy-related carbon dioxide emissions (as of 2023): Texas, California, Florida, Pennsylvania, Ohio, Louisiana, Illinois, New York, Indiana, and Michigan.

Lowest cumulative emissions

The same study identified the following ten states as having the lowest emissions: District of Columbia, Vermont, Rhode Island, Delaware, New Hampshire, South Dakota, Maine, Hawaii, Idaho, and Montana.

While 50% of the states with the highest gasoline tax also appear on the list for most cumulative emissions, 20% of the states with the lowest gasoline tax appear on the list with the lowest cumulative emissions. Given these results, it’s hard to conclude that there is a direct correlation between gasoline taxes and carbon footprints. Moreover, gasoline tax revenues are not idealistically set aside for transport purposes, but rather, spent broadly across state needs.

Start a home garden to reduce waste

There are a few lifestyle choices we can make now to make our homes more environmentally conscious. For example, pretty much everybody can have a garden (even if you think you have a black thumb).

The key is knowing your garden spot and your skill level. Container gardens are a fantastic way to start as you have a lot of control over the soil. And if you’ve never gardened before, choose easy to maintain plants like herbs and peppers.

Mother and daughter tending to a vegetable garden.

If you really want to expand, set aside a spot in your front or back yard and prep this week after work. You can then grab some seedlings and plant them this weekend. If you are more ambitious, you can start with seeds indoors and then transplant them when they are stronger and can resist pests.

Gardens are not only a fun way to relax, but they can save you some money in the long run. Rather than buying bags of mixed greens every week, you can pick exactly what you need minutes before you eat and you’ll also avoid the food waste that can come with all those plastic bags from the grocery store!

Composting: Reuse your kitchen scraps

Want to make your veggie garden really shine? How do you find fantastic organic material to feed your plants and build up your soil?

Create your own rich compost by saving your kitchen scraps (minus dairy and meat) and start a compost pile or bin outside in the backyard. If you’re limited on space due to apartment or condo living, you can still create a micro one right under your sink!

When you mix the scraps with coffee grinds, you can develop some fantastic material. Keep in mind that a healthy compost pile will have a nice earthy smell as it breaks down. Not only do you reduce waste by creating your own compost pile, but you can also garner big savings by not having to buy pricier organic fertilizer and soil builders at the store.

Recycle

Speaking of kitchen scraps, since you’re already going green and reducing waste by composting, reduce your trash even further by recycling. Stash away those bottles, cartons, and boxes (we all know you have them) for recycling instead of tossing them into the garbage bin.

Recycling may have been a harder habit to adopt at first, but it’s now become second nature to us. It’s now not unusual for garbage bins to take close to three weeks to fill, compared to a weekly fill for recycling! 

There are many creative ways we can go green and show our appreciation and respect for the environment while also saving money!

Don’t worry about knowing these tax rules. No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund — guaranteed.