23-05-2025
Why is Washington's gas tax increasing? When does the gas tax go up?
Washington's gas tax is one of the highest in the nation. It's going up again.
On July 1, 2025, the state's gas tax will increase by 6 cents per gallon, from 49.4 cents to 55.4 cents per gallon, the Washington State Standard reported.
Starting on July 1, 2026, the gas tax will increase annually by 2%.
It's the first gas tax increase since 2016, according to the Washington State Department of Revenue.
The gas tax increase is part of a $3.2 billion transportation revenue package that Washington Gov. Bob Ferguson signed on May 20, the Washington State Standard reported.
The gas tax will help fund a $15 billion transportation budget – also signed by Ferguson – that pays for things like public transit, road maintenance, and other infrastructure projects, the Seattle Times reported.
Ferguson said at a news conference that "no one's excited" about raising the gas tax, but the state Legislature came together in a bipartisan fashion to address "serious challenges" with the transportation budget and declining revenue.
"Our gas tax revenue is not what it was," Ferguson said, according to a YouTube video shared by KING 5 Seattle. "We have some structural challenges there that are well known to all of you."
The state has been struggling with declining gas tax revenue as electric and more fuel-efficient vehicles have become more popular, KING 5 Seattle reported.
The most popular car in Washington is the Tesla Model Y, according to Edmunds and a 2024 report from Car and Driver.
Washington has one of the highest state excise taxes for gasoline in the country, according to a May 2025 report from ComplyIQ, a tax software company.
California has the highest excise gas tax rate on gasoline at 59.6 cents per gallon, according to the report. Pennsylvania is second at 57.6 cents per gallon. Washington follows at 49.4 cents per gallon.
Alaska has the lowest gas tax rate at 8.9 cents per gallon, according to the report.
In addition to excise taxes, fuel prices are affected by state-specific sales taxes and fees, a 2024 Tax Foundation report said. The organization said it calculated these taxes and fees to find out the gas tax rates of each state. Washington still ranked near the top of the list at 52.82 cents per gallon, the fourth-highest rate in the U.S.
This article originally appeared on Kitsap Sun: When is Washington's gas tax increasing? Why is the gas tax going up?
