California installs new gas tax as other states follow suit

Key Points:

• Several U.S. states are increasing their gas taxes as summer begins, with prices already 40% higher than in February, impacting drivers ahead of the Fourth of July weekend.
• California leads with the highest gas tax, raising it by 2.2 cents per gallon to 63.4 cents starting July 1, 2026, as mandated by the Road Repair and Accountability Act of 2017.
• Washington state will increase its gas tax to 56.5 cents per gallon on July 1, 2026, marking the first annual inflation adjustment under new legislation, with funds supporting highway and transportation infrastructure.
• Maryland and New Jersey are also raising their gas taxes, with Maryland’s increase tied to inflation adding 0.6 cents per gallon and New Jersey implementing a 4.2-cent rise in December 2025, both aimed at funding transportation projects.
• Oregon and New Mexico attempted to raise gas taxes to fund transportation but failed; Oregon’s proposed increase was rejected by voters, and New Mexico’s bill was killed shortly after introduction.