Delaware Gas Tax: Current Rates, Exemptions, and EV Fees

The Delaware gas tax is $0.23 per gallon on gasoline and $0.22 per gallon on diesel and other special fuels. The federal government adds $0.184 per gallon on gasoline and $0.244 per gallon on diesel, so the combined tax on a gallon of regular gas in Delaware is about $0.414. Delaware has no state sales tax, so nothing else is tacked on at the pump. The state rate is set by statute and does not adjust for inflation; it has held at $0.23 since January 1, 1995, and only a vote of the General Assembly can change it.1Justia Law. Delaware Code Title 30 5110 – Levy and Rate of Tax; Collection

What the State Taxes and at What Rate

Delaware taxes motor fuel in three categories, each at its own rate:

Federal excise tax applies on top of each. The federal gasoline figure of $0.184 and diesel figure of $0.244 both include a 0.1-cent-per-gallon underground storage tank fee.

How Delaware Compares to Neighboring States

Delaware’s $0.23 gasoline tax is among the lowest in the mid-Atlantic. Pennsylvania’s state gasoline tax is roughly $0.576 per gallon, and Maryland’s is approximately $0.47 per gallon. New Jersey, at about $0.105 per gallon, is one of the few states lower than Delaware. A driver filling a 15-gallon tank in Pennsylvania pays more than $5 extra in state fuel tax alone compared with filling up across the border in Delaware.

Part of the reason the Delaware rate stays low is that it does not adjust automatically. Maryland and Pennsylvania use formulas that let their rates rise with inflation or fuel prices without new legislation. Delaware’s rate can only move through an affirmative vote in the General Assembly, which keeps the per-gallon charge where it has been since 1995.

Who Actually Pays the Tax

The tax is legally owed by licensed distributors, not individual drivers.4Justia Law. Delaware Code Title 30 5103 – License for Distributor Distributors file monthly returns and remit payment by the 25th of the following month, electronically through ACH in most cases.6Delaware Division of Motor Vehicles. Motor Fuel Distributor Tax Reporting Instructions

Refunds When You Buy Gas but Don’t Drive It on the Road

If you buy gasoline at a regular pump but use it for something other than a licensed motor vehicle on public roads, you can apply for a refund of the state tax you paid. Qualifying uses include stationary engines, tractors, motorboats, and aircraft. This is how agricultural operations recover fuel tax costs, because farm equipment isn’t covered by the point-of-sale exemptions.5Justia Law. Delaware Code Title 30 5120 – Refunds of Motor Fuel Taxes

Refund claims go to the Department of Transportation through the Division of Motor Vehicles, not the Department of Finance. You must file within 12 calendar months of the purchase date, and the claim has to include original invoices or receipts showing the gallons purchased and the tax paid.7Justia Law. Delaware Code Title 30 5120 – Refunds of Motor Fuel Taxes Miss the deadline and the refund is gone. The DMV publishes a standardized claim form.

Buyers Who Pay No Tax at All

Some purchases are exempt at the point of sale, meaning no state tax is charged on delivery. Gasoline sold to the following buyers qualifies:

  • The United States and its agencies.
  • The State of Delaware and its political subdivisions.
  • Volunteer fire companies and veteran or civic ambulance services, for fuel used in their official vehicles on a voluntary, nonprofit basis, provided the tanks are reserved exclusively for those vehicles.
  • Sales made under the protection of the interstate commerce clause.
  • Sales between licensed distributors.

The Department of Transportation may require exempt organizations to keep an exemption certificate on file with both the Department and the fuel supplier.8Justia Law. Delaware Code Title 30 5111 – Exempt Sales of Gasoline Special fuels have a parallel set of exemptions covering the same government entities and volunteer organizations.9Delaware Code Online. Delaware Code Title 30 5133 – Exemptions Ordinary private drivers and businesses do not qualify, even when driving for work.

Electric and Hybrid Vehicles: An Annual Fee Instead

Electric vehicles and hybrids burn little or no gasoline, so their owners pay little or no fuel tax despite using the same roads. Delaware closed that gap through House Bill 164, which created an annual registration surcharge for alternative fuel vehicles. The fee is charged on top of the standard registration fee and varies by vehicle type and weight.10Delaware Division of Motor Vehicles. Fees

  • Electric vehicles under 6,000 lbs: $110 per year
  • Electric vehicles 6,001–10,000 lbs: $150 per year
  • Electric vehicles 10,001–26,000 lbs: $260 per year
  • Electric vehicles over 26,000 lbs: $900 per year
  • Plug-in hybrids under 6,000 lbs: $85 per year
  • Non-plug-in hybrids under 6,000 lbs: $60 per year
  • Electric motorcycles: $15 per year

Vehicles running on compressed natural gas, liquefied natural gas, propane, or ethanol pay the same rates as fully electric vehicles in the corresponding weight class.10Delaware Division of Motor Vehicles. Fees

Where the Money Goes

Fuel tax revenue flows into the Transportation Trust Fund, a dedicated account under Title 2, Chapter 14 of the Delaware Code that keeps the money separate from the general budget.11Delaware Code Online. Delaware Code Title 2 Chapter 14 – Transportation Trust Fund The fund pays for highway construction and repair, bridge maintenance, and public transit. In fiscal year 2026, motor fuel tax revenue contributed approximately $129.7 million to the fund,12Delaware Department of Finance. DEFAC May 2026 DelDOT Revenue a fraction of DelDOT’s total budget, which exceeds $1.1 billion when capital projects and debt service are included.13Delaware Office of Management and Budget. FY2027 OMB Public Budget Hearing for DelDOT The rest comes from federal highway aid, tolls, vehicle registration fees, and other transportation charges.