Several states set to hike diesel fuel taxes starting July 1

LITTLE ROCK, Ark. — As the average price for diesel fuel continues a mostly downward trend, a few states in the nation are preparing to raise taxes starting July 1. One state — Utah — is actually lowering its tax rate on July 1, however.

Following is a state-by-state tax breakdown of diesel tax changes.

California

To battle inflation, California is raising its diesel fuel excise tax on July 1 to 44.1 cents, up 3.1 cents. Officials say it’s to keep up with inflation.

Illinois

Illinois is raising its diesel excise tax to 52.9 cents per gallon beginning July 1. That’s a 3.1-cent increase. This increase comes on the heels of a Jan. 1 increase of 3.1 cents. State officials say the hikes are due to inflation.

Indiana

Indiana’s diesel excise tax is set to increase by a cent to 56 cents per gallon on July 1.

A state laws require rate adjustments through 2027, with adjustments being made each July 1, capped at a cent.

Kentucky

Diesel taxes in Kentucky are set to increase by 2.1 cents to 25.1 cents per gallon on July 1.

Maryland

In Maryland, diesel taxes will hike to 47.75 cents per gallon on July 1. That’s up from 43.45 cents.

The state is allowed to make adjustments to fuel taxes based on the Consumer Price Index.

Missouri

Missouri’s taxes on diesel fuel will rise to 24.5 cents per gallon on July 1 thanks to a 2021 law that allows for regular increases. This will be the third tax hike out of five annual increases that are scheduled through 2025, when the tax on diesel will reach 29.5 cents per gallon.

Utah

In Utah, the tax collected on diesel fuel is going down to 34.5 cents per gallon on July 1 thanks to a law that allows for recalculation of taxes based on refinery costs.

The current tax on diesel is 36.4 cents per gallon.

Virginia

Virginia’s diesel taxes are rising to 29.8 cents per gallon on July 1, up from 28 cents.

The tax on wholesale fuels is also being increased to 8.8 cents, making for a combined diesel tax of 39.7 cents per gallon.

The Trucker News Staff

The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.