Michigan ranked 10th in nation for highest gas tax
Only nine other states outrank Michigan when it comes to dinging drivers at the pump with gas taxes and fees, according to a recent study released by the Tax Foundation.
“Michigan has high fuel taxes because it is a rare state that levies sales taxes and extra per-gallon taxes on gasoline sales,” Mackinac Center for Public Policy Director of Economic Policy James Hohman told The Center Square.
“While fuel tax rates haven’t increased since 2015, sales taxes have as the price of gas has gone up.”
Tenth-ranked Michigan rakes in more than 45.12 cents per gallon (cpg) in taxes and fees, compared to 66.98 cents per gallon charged by top-ranked California and 14.98 cpg collected by Alaska, the nation’s lowest gasoline taxes and fees. Michigan’s taxes and fees, however, are lower than rates in fellow Midwestern states Indiana and Illinois, which collects, respectively, 49.79 cpg and 59.56 cpg.
Those charges do not include an additional federal excise tax of more than $0.18 per gallon.