News Story

We’re No. 1? Michigan Could Get Nation’s Highest Gas Tax

Whitmer’s 45-cent increase would see motorists paying $1.06 per gallon in tax

If Democratic Gov. Gretchen Whitmer’s proposal to increase the gas tax by 45 cents per gallon were approved, Michigan would have the highest state tax in the country.

That’s according to the American Petroleum Institute’s most recent national survey of state fuel taxes.

Michigan imposes 42.86 cents per gallon in state taxes on gasoline as of April 1. That ranks as the seventh-highest in the nation behind Pennsylvania (58.70 cents per gallon), California (55.18), Washington (49.40), Hawaii (46.76), New York (45.35) and Indiana (42.90).

Whitmer’s 45-cent increase would boost Michigan’s tax to 87.86 cents per gallon. When added to the federal gas tax of 18.4 cents per gallon, the increase would see motorists in this state paying more than $1.06 in tax for every gallon of gas.

“Michigan already has the highest gas taxes in the region and would double the rest of the region if the governor's proposal were enacted,” says James Hohman, a fiscal analyst for the Mackinac Center for Public Policy.

 

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.