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Several States Push Small Gas Tax Hikes Ahead of July Fourth Travel

Small, formula-driven increases aim to preserve funding for roads and transit without an immediate rise in pump prices.

Overview

  • State governments implemented modest, statutory or CPI-linked increases to gasoline taxes to keep transportation funds steady.
  • California raised its rate by about 2.2 cents to roughly 63.4 cents per gallon while Washington, Maryland and Virginia also increased rates under their formulas.
  • New Jersey moved earlier this year to raise its rate and Oregon voters rejected a November 2025-backed increase, leaving that state at its prior rate of 40 cents per gallon.
  • GasBuddy and AAA say wholesale oil and retail prices have fallen entering the holiday so stations may absorb the small tax changes and shoppers may not see immediate large price jumps.
  • Drivers and rideshare operators say higher overall fuel costs still squeeze household budgets and force longer work hours to cover expenses, and officials say the revenue will fund roads, bridges and transit projects.