California’s gasoline excise tax rose to 61.2 cents per gallon on July 1, 2025, up from 59.6 cents the year before. The July 1 change happens every year automatically under a formula tied to the California Consumer Price Index, so no legislative vote is needed to move the rate. The California Department of Tax and Fee Administration announces each year’s new figure in the spring before it takes effect.
The Current Rate
As of July 1, 2025, the state excise tax on regular gasoline is 61.2 cents per gallon. That replaced the 59.6-cent rate in place from July 1, 2024, which itself replaced a 57.9-cent rate before that. Recent annual bumps have run roughly 1.5 to 1.7 cents.1California Department of Tax and Fee Administration. Fuel Taxes
This is a flat per-gallon charge, not a percentage of the pump price. Whether gas sells for $3.50 or $5.50, the excise portion is the same 61.2 cents. The tax is already included in the price shown on the pump; station operators collect it and remit it to the state.
What You Actually Pay in Taxes Per Gallon
The state excise tax is one layer of several. As of early 2025, the combined tax load on a gallon of regular gasoline in California comes to roughly 90 cents, the highest in the country.2U.S. Energy Information Administration. Why California Usually Pays More at the Pump for Gasoline The pieces break down roughly like this:
- State excise tax: 61.2 cents per gallon
- Federal excise tax: 18.4 cents per gallon, unchanged since 19933U.S. Energy Information Administration. Frequently Asked Questions – How Much Tax Do We Pay on a Gallon of Gasoline
- State sales tax on gasoline: roughly 10 cents per gallon, which moves with the pump price
- Underground storage tank fee: about 2 cents per gallon
The national average for state fuel taxes alone sits around 28 cents per gallon, so California’s state-level load runs more than double a typical state.2U.S. Energy Information Administration. Why California Usually Pays More at the Pump for Gasoline California’s cap-and-trade program and Low Carbon Fuel Standard add another estimated 5 to 8 cents per gallon on top, though those costs are built into wholesale pricing rather than listed as taxes.
Filling a 15-gallon tank means roughly $13.50 goes to combined state and federal taxes alone, before counting the hidden program costs.
Why the Rate Changes Every July 1
The yearly July 1 adjustment comes from Senate Bill 1, the Road Repair and Accountability Act of 2017. Before SB 1, the state gas excise tax had not been raised since 1994, and inflation had cut into what it could buy in road repairs.4Metropolitan Transportation Commission. Road Repair and Accountability Act (SB 1)
SB 1 added 12 cents to the base tax starting November 1, 2017, and locked in automatic inflation adjustments beginning July 1, 2020. Each year the rate moves by the percentage change in the California Consumer Price Index over the preceding 12 months, as calculated by the Department of Finance, then rounds to the nearest tenth of a cent. Revenue and Taxation Code Section 7360(d) applies that adjustment to all three layers of the gasoline tax: the original 18-cent base, a 17.3-cent supplemental rate, and the 12-cent SB 1 surcharge.5California Department of Tax and Fee Administration. Motor Vehicle Fuel Tax Law – Sec. 7360
So the legislature does not take a vote each year. The rate moves on its own as long as the CPI keeps climbing.
Diesel’s Separate July 1 Rate
Diesel has its own schedule. The diesel excise tax rose to 46.6 cents per gallon on July 1, 2025, up from 45.4 cents.1California Department of Tax and Fee Administration. Fuel Taxes Diesel also carries an additional sales tax replacement rate called Component B, which brings the total diesel-specific state tax to 97.1 cents per gallon for the period starting July 1, 2025.6California Department of Tax and Fee Administration. Sales Tax Rates for Fuels Trucking and logistics operations feel that total load heavily across a fleet.
Aircraft jet fuel carries a flat 2-cent excise rate that has not changed since 1969, plus a separate sales tax.1California Department of Tax and Fee Administration. Fuel Taxes
What To Expect on July 1, 2026
The CDTFA generally publishes the upcoming fiscal year’s rate by early spring. The July 1, 2026 rate has not yet been announced. The adjustment formula effectively guarantees another increase as long as California’s consumer prices keep rising, and the pattern of recent years suggests the next bump will likely land in the same 1.5-to-2-cent range, though the actual figure depends on what the CPI does over the measurement window.
The underlying structure stays in place year after year. Unless a future ballot initiative repeals or modifies SB 1, the July 1 adjustment continues indefinitely.
If You Drive an Electric Vehicle
Zero-emission vehicles don’t buy gasoline, so their drivers don’t pay the excise tax at the pump. California instead charges a Road Improvement Fee of $121 per year on model year 2020 and later zero-emission vehicles at registration renewal.7California Department of Motor Vehicles. Registration Fees The fee is not charged on the initial registration of a new ZEV bought from a licensed dealer. That flat fee is separate from the July 1 excise rate and does not adjust on the same schedule.