Franklin Matters: MA gas tax is just below National average

Saturday, July 25, 2015

MA gas tax is just below National average

Summer time is drive time for many to travel for their vacations. Driving uses gasoline and gas prices vary state to state. What portion of the price variation is actually due to the state taxes? The American Petroleum Institute publishes a report on the state taxes and calculates a national average.

The MA total gas tax is 26.54 cents and including the Federal tax (18.4), the total per gallon is 44.94 cents. The national average is 48.88 cents.

Here is a summary report on gasoline and diesel taxes. This report is updated quarterly. API collects motor fuel tax information for all 50 states and compiles a report and chart detailing changes and calculating a nationwide average.

API's chart reflects a weighted average for each state, meaning that any taxes which can vary across a state's jurisdiction are averaged according to the population of the local areas subject to each particular tax rate. Where appropriate, the weighted average also takes into consideration the typical percentages of premium, midgrade, and regular fuel purchased in each state.

In states where taxes vary depending upon the price of the motor fuel (for example, where the tax rate is set as a percentage of the sales price rather than a cents per gallon method), the state average listed on the chart is a snapshot based upon the price of fuel (as reported by AAA) on the date the chart is updated. Be sure to also look at the "Notes" attachment for a detailed explanation of the various taxes included in our chart.