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Transportation Taxes in California
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:
|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)|
|2.25%||State/Local||Total Statewide Base Sales and Use Tax Rate|
Sources: State Board of Equalization