Katerina Swanson
The state of Pennsylvania levies a tax on liquid fuels (primarily gasoline) and other fuels (including diesel and special fuels). For tax years prior to 2014, a rate of 12 cents per gallon was imposed on these fuels. In 2024, the tax rate for gasoline was 57.6 cents per gallon, while diesel fuel was taxed at 74.1 cents per gallon. As of 2025, Pennsylvania has the second-highest tax rate on gasoline at $0.576 / gallon, second only to California. Additionally, Pennsylvania has the highest tax rate on diesel fuel at $0.741 / gallon. The state also collects a Leaking Underground Storage Tank (LUST) tax of 0.1 cents per gallon on both gasoline and diesel, as well as a 1.1 cent per gallon underground storage tank fee.
| Characteristics | Values |
|---|---|
| Liquid fuels tax (prior to 2014) | 12 cents per gallon |
| Oil company franchise tax (2024) | 57.6 cents per gallon |
| Diesel fuel tax (2024) | 74.1 cents per gallon |
| Federal excise tax on gasoline (2025) | 18.3 cents per gallon |
| Federal excise tax on diesel fuel (2025) | 24.3 cents per gallon |
| Leaking Underground Storage Tank (LUST) tax on gasoline and diesel fuel (2025) | 0.1 cents per gallon |
| Total federal excise tax on gasoline (2025) | 18.4 cents per gallon |
| Total federal excise tax on diesel fuel (2025) | 24.4 cents per gallon |
| Non-refundable LUST tax on dyed and clear liquid fuel (2025) | 0.001 cents per gallon |
| Superfund tax on crude oil and imported petroleum products (2025) | $0.26 cents per barrel |
| Pennsylvania gasoline tax (2025) | $0.576 / gallon |
| Pennsylvania diesel tax (2025) | $0.741 / gallon |
| Underground storage tank fee | 1.1 cents per gallon |
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What You'll Learn
Pennsylvania's gasoline tax is $0.576/gallon
Pennsylvania has one of the highest tax rates on gasoline in the United States. As of 2025, the gasoline tax in Pennsylvania is $0.576 per gallon. This rate is just below that of California, which has the highest rate in the country at $0.596 per gallon.
The gasoline tax in Pennsylvania has remained relatively stable in recent years. In 2024, the state's Oil Company Franchise Tax rate for gasoline was 57.6 cents per gallon, the same rate as in 2025. This tax is collected by the Pennsylvania Department of Revenue and applies to all taxable liquid fuels, including gasoline.
The gasoline tax in Pennsylvania is an excise tax, which is a type of tax that is applied to specific goods or services, such as gasoline, tobacco, or alcohol. Excise taxes are typically imposed in addition to other taxes, such as sales or income taxes, and they can be applied at the federal, state, or local level.
The revenue generated from the gasoline tax in Pennsylvania is used to fund various programs and initiatives. One of the main purposes of the tax is to generate funding for transportation-related programs, such as improving infrastructure. This is in line with the practice in other states, where a portion of the revenue from gasoline and diesel taxes is allocated specifically for transportation-related expenditures.
In addition to the gasoline tax, Pennsylvania also levies other fuel-related taxes, such as a tax on diesel fuel and alternative fuels. The tax rates for these fuels may differ from that of gasoline and are subject to change over time. It's important for taxpayers to stay informed about the applicable tax rates and any updates or adjustments made by the Department of Revenue.
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Diesel fuel tax is 74.1 cents/gallon
The tax levied on diesel fuel in Pennsylvania is among the highest in the United States. As of 2024, the diesel fuel tax rate in the state is 74.1 cents per gallon, which is a significant increase from the 12 cents per gallon tax imposed before 2014. This tax rate is part of the Oil Company Franchise Tax and Alternative Fuels Tax Rates published by the Pennsylvania Department of Revenue.
The high diesel fuel tax in Pennsylvania is not an isolated case. Other states have also implemented notable tax rates on diesel fuel. For example, in 2025, the tax rate on diesel fuel in California was $0.596 per gallon, only slightly lower than the rate in Pennsylvania. However, some states, like Alaska, have much lower diesel tax rates, with Alaska's being as low as $0.0895 per gallon in 2025.
The revenue generated from diesel fuel taxes is typically used for transportation-related programs and infrastructure improvements. This allocation of funds ensures that the tax revenue directly contributes to enhancing the state's transportation network and road systems. This is in line with federal taxes on motor fuels, where the Highway Trust Fund collects revenue from excise taxes on motor fuels, including diesel, to support transportation and infrastructure initiatives.
It's worth noting that the diesel fuel tax rate in Pennsylvania may change over time. The Pennsylvania Department of Revenue periodically updates the tax rates, and it's essential for individuals and businesses to stay informed about the current rates to ensure accurate tax calculations and compliance. Additionally, there may be additional fees and taxes associated with diesel fuel, such as the underground storage tank fee, which further contribute to the overall cost of diesel fuel in the state.
In summary, the diesel fuel tax rate of 74.1 cents per gallon in Pennsylvania is one of the highest in the nation. This tax rate contributes to the state's revenue, which is allocated towards transportation and infrastructure improvements. By staying informed about the current tax rates and associated fees, individuals and businesses can ensure they are compliant with the tax regulations in Pennsylvania.
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Aviation fuel tax
The jet fuel tax rate for 2023 was set at 2.0 cents per gallon or fractional part thereof, an increase from the 2017 rate of 1.6 cents per gallon. The jet fuel tax rate typically applies to fuel used or sold and delivered by distributors within Pennsylvania for use in turbine-propeller jet, turbojet, and jet-driven aircraft and aircraft engines.
The rates of tax on aviation gasoline and jet fuel are determined annually by the Department of Revenue and are usually announced by December 15 for the following calendar year. The tax rate is determined on a "cents per gallon equivalent basis," which takes into account the average wholesale price per gallon and any applicable taxes.
While Pennsylvania's gasoline tax rate is one of the highest in the country, its aviation fuel tax rate is not as high in comparison to other states. For example, in 2025, Massachusetts had the highest tax rate on aviation fuel at $0.335 per gallon, while Oklahoma had the lowest rate at $0.0008 per gallon.
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Jet fuel tax
The jet fuel tax rate in Pennsylvania is adjusted annually starting from January 1, 1986, and each subsequent January 1. The rate of tax on jet fuel is subject to a maximum of 2.0 cents per gallon. On October 12, 2022, the aviation gasoline tax rate was set at 6.0 cents per gallon, while the jet fuel tax rate was set at 2.0 cents per gallon. These rates remained the same for 2023 and 2024. The rate of tax on jet fuel is adjusted based on the producer price index for jet fuel, as determined by the United States Department of Labor, Bureau of Labor Statistics.
Revenues from jet fuel taxes primarily fund airport and Air Traffic Control operations by the Federal Aviation Administration (FAA). In 2019, revenues from the transportation fund, which includes jet fuel taxes, amounted to over $44 billion.
Compared to other states, Pennsylvania does not have the highest tax rate on jet fuel. For 2025, the state with the highest tax rate on jet fuel is Washington, D.C., at $0.235 per gallon. Oklahoma has the lowest jet fuel tax rate at $0.0008 per gallon.
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Federal taxes on motor fuels
The federal government imposes taxes on motor fuels, including gasoline, gasohol, diesel fuel, aviation gasoline, and jet fuel. These taxes are typically collected on a cents-per-gallon basis, with rates varying by fuel type and jurisdiction.
In Pennsylvania, the motor fuels tax is applied to taxable liquid fuels like gasoline and gasohol and fuels like diesel fuel. The tax is remitted by distributors of these liquid fuels and is based on a cents-per-gallon equivalent basis. Additionally, an underground storage tank fee of 1.1 cents per gallon is collected by the Insurance Department for the Underground Storage Tank Indemnification Fund. This fee is separate from the motor fuels tax and does not get deposited into the Motor License Fund.
Aviation gasoline and jet fuel are also subject to taxation in Pennsylvania, but separate tax rates are set for these fuel types. The revenues generated from aviation fuel and jet fuel taxes primarily fund airport and Air Traffic Control operations managed by the Federal Aviation Administration (FAA).
While the federal government imposes taxes on motor fuels, the specific tax rates and exemptions can vary by state. In Pennsylvania, certain exemptions are in place for fuels sold and delivered to specific entities, such as the U.S. government, volunteer fire companies, and nonpublic, nonprofit schools (K-12). Additionally, reimbursements may be provided for specific agricultural purposes and fuel consumed in truck-mounted refrigerator units.
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Frequently asked questions
The fuel tax rate for gasoline in PA is 57.6 cents per gallon.
The fuel tax rate for diesel in PA is 74.1 cents per gallon.
The federal excise tax rate for gasoline is 18.3 cents per gallon, plus a Leaking Underground Storage Tank (LUST) tax of 0.1 cents per gallon.
The Superfund tax rate for 2025 is $0.26 cents per barrel.
The LUST tax rate for 2025 is 0.1 cents per gallon for both gasoline and diesel fuel.
