Tax Deductions and Credits The Highs and Lows of Gasoline Tax Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Ginita Wall Published Aug 13, 2013 - [Updated Jul 19, 2019] 2 min read We’ll do your taxesand find every dollaryou deserve When your Full Service expert does your taxes,they’ll only sign and file when they know it’s 100% correctand you’re getting the best outcome possible, guaranteed. Get started now Nobody likes high gas prices — or taxes — and in many states you are being hit with both this summer. For example, in July the California state gasoline tax rate was raised 3.5 cents to almost 72 cents a gallon, which is the highest gas tax rate in the country, with New York gas taxes just a few cents behind. It’s likely that you never think about the gas tax when you fill your tank. That’s because it is included in the cost of each gallon, rather than being added on at the end of the sale like sales tax, or collected at tax time like income taxes. But even if you never think of gas tax, it is likely that you benefit from its collection: state excise tax on gasoline funds highway and mass transit projects in most states. Though California gas taxes are the highest in the country, they are significant in other states as well. The average tax on a gallon of gas is 49 cents nationwide. What does that mean to your wallet? If you drive 15,000 miles a year at 25 mpg and pay 49 cents a gallon for gas taxes, you would pay almost $300 per year extra for gasoline. You unfortunately can’t take a tax deduction for gas taxes on your federal income tax return, however it is a component of the auto mileage rates that you can deduct on your taxes for use of your vehicle for business, moving, medical, or charitable purposes. The deductible standard mileage rates are: 56.5 cents per mile for business miles driven 24 cents per mile driven for medical and moving 14 cents per mile for service of a charitable organization So next time you are filling up, check out the sticker on the pump that lists what makes up the cost of each gallon – you’ll be amazed. We’ll do your taxesand find every dollaryou deserve When your Full Service expert does your taxes,they’ll only sign and file when they know it’s 100% correctand you’re getting the best outcome possible, guaranteed. Get started now Previous Post Summer Job Search Expenses That Can Save You Money Next Post Tax Tips if You Traveled for Charity Work This Summer Written by Ginita Wall More from Ginita Wall One response to “The Highs and Lows of Gasoline Tax” If the gas has a sales tax – that component of the taxes is deductible…. not the excise taxes, but the sales tax – how is that different than the sales tax on purchasing dishes and silverware at Target…?? Reply Leave a Reply Cancel reply Browse Related Articles Home Earth Day 2023: Going Green Saves You Green on Your Tax… Tax News How is Your Oktoberfest Beer Taxed? Self-Employed Self-Employed Tax Deductions Calculator 2021-2022 Tax Deductions and Credits Everyday Taxes in Five Major U.S. Cities Tax News What You Need to Know About the Proposed California Gas… Tax News Cigarette Taxes In Photos Tax Deductions and Credits 10 Commonly Overlooked Tax Deductions and Credits Tax Planning 10 End of Year Tax Tips to Increase Your Tax Refund Tax Tips Where are the Least Taxing Places to Live? Tax Deductions and Credits What Are the Standard Mileage Rates?