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Summer Gas Tax Cut Takes Effect
California - Outline and Flag - Solid

Board of Equalization Member George Runner on Monday announced the state excise tax on gasoline will drop by 2.2 cents per gallon beginning July 1, 2016. This lowers the current excise tax rate from 30 cents to 27.8 cents per gallon.

“Californians have another reason to celebrate during Independence Day weekend,” said Runner. “This gas tax rate cut comes right on time for those hitting the road during the holiday.”

The Board approved the 2.2 cent tax rate reduction at its February 2016 meeting. The 27.8 cent per gallon rate will remain in effect until June 30, 2017.

Even with the lower rate, Californians will continue to pay some of the highest gas taxes in the nation. According to the latest information from, California also has the highest average gas price in the nation, beating Hawaii, Washington and Alaska for the top spot. Additionally, the Legislative Analyst’s Office estimates the state’s cap-and-trade auction has raised the price of gasoline by 11 cents per gallon and 13 cents per gallon of diesel.