Washoe County Gas Tax: Rates, Diesel, and Refunds

Drivers pay roughly $1.04 in taxes on every gallon of gasoline at a Washoe County pump in fiscal year 2026, and the Washoe County gas tax — the local share — accounts for about 63 cents of that. The federal government takes 18.4 cents and the state of Nevada adds 23 cents, but the local portion is what pushes prices in the Reno area above most of Nevada. Most of that local charge comes from a voter-approved indexing formula tied to construction costs, which has grown steadily since Washoe County voters authorized it in 2008.

What You Pay Per Gallon in FY 2026

Three levels of government stack taxes on each gallon of gasoline sold in Washoe County. The federal excise tax is 18.4 cents per gallon and funds the Highway Trust Fund.¹ Nevada’s statewide tax adds 23 cents.²

The Washoe County local portion, in effect from July 1, 2025 through June 30, 2026, splits into four components:

County option tax of 9 cents per gallon, the maximum allowed under NRS 373.030³
County other tax of 1 cent per gallon
CPI-indexed tax of approximately 2.66 cents per gallon
PPI-indexed tax of approximately 50.14 cents per gallon²

Add those up and the local tax on gasoline runs about 62.8 cents per gallon. The PPI component is by far the largest piece, and it’s the one that keeps growing each year.

Why the Local Tax Keeps Rising

The 9-cent county option tax has been on the books for decades. What’s driven Washoe County’s fuel tax higher is the indexing formula authorized by ballot measure RTC-5, which voters first approved in 2008 and have reaffirmed since.⁴

NRS 373.065 provides the statutory authority, applying to counties with a population under 700,000. Under that provision, the county board can impose an excise tax calculated by multiplying the base state tax amount by the lesser of 4.5 percent or the average percentage increase in the Consumer Price Index for West Urban Consumers over the preceding five years. A parallel formula governs the PPI component, which compounds annually.³

The PPI piece tracks the Producer Price Index for nonresidential construction, which measures what it costs to build roads and bridges. Because the index is cumulative and recalculated each fiscal year, the tax has climbed substantially over time. The RTC describes the tax as based on a 10-year rolling average, which smooths year-to-year spikes in construction costs. As of July 1, 2025, the RTC-5 voter-approved gas tax reached approximately 57 cents per gallon, up 3.9 cents from the prior year.⁴ The CPI portion, by contrast, holds relatively steady from year to year.

Diesel and Other Special Fuels

The local tax applies to all motor vehicle fuel sold for road use, including regular, mid-grade, and premium gasoline along with ethanol blends. Aviation fuel and leaded racing fuel are the two carve-outs under NRS 373.030.³

Diesel and other special fuels are taxed too, but at different indexed rates. For FY 2026 in Washoe County, the PPI-indexed rates come in at:

Diesel, biodiesel, and LNG: approximately 47.65 cents per gallon
LPG: approximately 36.82 cents per gallon
CNG: approximately 35.91 cents per gallon²

The variation reflects differences in energy content and how each fuel wears on roads. Fuel that isn’t sold for road use falls outside these taxes altogether, which is where refunds come in.

Where the Money Goes

Fuel tax revenue collected in Washoe County goes to the Regional Transportation Commission of Washoe County, which handles local transportation planning and spending. The money is earmarked for road construction, repair, and maintenance and cannot be diverted to general county expenses.⁴

The RTC has estimated that fuel tax revenue will fund more than $558 million in roadway improvements over a five-year window and serves as the primary local funding source for approximately $5 billion in planned improvements over 30 years. The fuel tax has also been pledged as security for $312 million in outstanding bonds that must be repaid.⁴ Those bond obligations lock in a minimum level of fuel tax revenue that the county must continue generating for at least 15 years.

Refunds and Exemptions

Not every gallon sold in Washoe County is actually subject to these taxes when you use it. Fuel bought for certain purposes qualifies for a refund, though the rules differ depending on whether you’re dealing with gasoline (NRS Chapter 365) or diesel and other special fuels (NRS Chapter 366).

Gasoline Refunds

Under NRS 365.370, three categories of gasoline buyers can claim a refund of fuel taxes paid: those who export gasoline from Nevada, those who sell gasoline to the United States Government for official use of the Armed Forces, and those who buy gasoline for purposes other than powering motor vehicles on public roads, such as farm equipment or stationary engines.⁵

The limitations matter. You must have purchased at least 200 gallons within a six-month period that was used for an exempt purpose.⁵ Gasoline burned in recreational watercraft does not qualify, even though a boat never touches a public road. Aviation fuel is excluded from the refund program entirely.

Special Fuel Exemptions

The exemptions for diesel and other special fuels are broader. Under NRS 366.200, the tax does not apply to fuel used for any purpose other than powering a vehicle on public highways, sales to the United States Government or its agencies, sales to any state, county, city, or other political subdivision, fuel used in public transit vehicles, or fuel used to operate special mobile equipment.⁶

That distinction catches local government fleets off guard. A city-owned diesel truck fueling up in Washoe County is exempt from the special fuel tax, but the same city buying gasoline for its fleet cars is not.

How to File

To recover taxes paid on exempt fuel, you file a refund claim with the Nevada Department of Motor Vehicles. The claim must include original purchase invoices and an explanation of how the fuel was used.⁷ Deadlines are firm. Export-based claims must be filed within 3 months of the export date, and all other refund claims must be filed within 12 months of the purchase date. Miss the window and the refund is forfeited.⁵

On top of the state refund, you may also be eligible for a federal tax credit on fuel used for nontaxable purposes. IRS Form 4136 lets you claim a credit for the 18.4-cent federal excise tax on gasoline (or the applicable rate for diesel and alternative fuels) used off-highway or in other qualifying ways, and you claim it on your annual income tax return.⁸ Larger commercial operations can use IRS Form 8849 for a quarterly refund, subject to a $750 minimum per quarter. If you use fuel for both highway and off-highway purposes, you’ll need to track each use separately and file with each agency independently.

Electric Vehicles

Drivers of electric vehicles in Washoe County avoid the fuel tax entirely, since they never buy gasoline or diesel at the pump. Nevada does not currently impose a special EV registration fee to offset the lost revenue, which puts it in the minority of states. As EVs become more common in the Reno area, the fuel-tax-dependent funding model faces pressure, and the $312 million in bond obligations backed by fuel tax revenue makes that more than an abstract concern.

1
Congress.gov. Suspension of the Federal Gas Tax: In Brief
2
Nevada Department of Motor Vehicles. Fuel Dealers and Suppliers
3
Nevada Legislature. Nevada Code 373 – County Taxes on Fuel
4
Regional Transportation Commission of Washoe County. RTC-5 Voter-Approved Fuel Tax Information
5
Nevada Legislature. Nevada Code 365 – Taxes on Certain Fuels for Motor Vehicles
6
Nevada Department of Motor Vehicles. Nevada Motor Fuel Handbook
7
Nevada Department of Motor Vehicles. Gas Tax Refund Request Form Instructions
8
Internal Revenue Service. About Form 4136, Credit for Federal Tax Paid on Fuels