Welcome to the  California Energy Almanac

Transportation Taxes in California

OVERVIEW...

Retail Gasoline Taxes

Californians pay 55.7-cents per gallon of gasoline for state and federal excise and use taxes. This includes:

  • Federal Excise Tax - 18.3¢/gallon
  • Federal Underground Storage Tank Fee - 0.1¢/gallon
  • State Fuel Tax - 35.3¢/gallon*
  • State Underground Storage Tank Fee - 2.0¢/gallon

* State excise tax changed July 1, 2010, reducing the sales and use tax from 8.25% of amount purchased to 2.25%. Excise tax increased from 18¢/gallon to 35.3¢/gallon to compensate for the decrease in sales tax.

On top of that, state sales and use tax of 2.25% percent is added, along with any additional local tax rates, which can vary from 0.125% to 1.25%.

For details on California sales taxes, see the Board of Equalization website at: www.boe.ca.gov/

Detailed Description of the Sales & Use Tax Rate

The tax rate in your area may be higher than 2.25% depending on the district taxes that apply there.

Components of the Statewide Gasoline 2.25 percent Sales and Use Tax Rate:

Rate Jurisdiction Purpose Authority
0.25% State Goes Towards State's Fiscal Recovery Fund, to pay off Economic Recovery Bonds (2004) Revenue and Taxation Code Sections 6051.5, 6201.5 (Operative 7/1/04)
0.50% State Goes to Local Public Safety Fund to support local criminal justice activities (1993) Section 35, Article XIII, State Constitution
0.50% State Goes to Local Revenue Fund to support local health and social services programs (1991 Realignment) Revenue and Taxation Code Sections 6051.2, 6201.2
1.00% Local 0.25% Goes to county transportation funds
0.75% Goes to city and county operations
Revenue and Taxation Code Section 7203.1 (Operative 7/1/04)
Total:
     
2.25% State/Local Total Statewide Base Sales and Use Tax Rate  

Sources: State Board of Equalization

 

DATA, FACTS, & STATS...