Motor fuel tax revenue U.S. 2021 | Statista (2024)

FAQs

Motor fuel tax revenue U.S. 2021 | Statista? ›

In 2021, state and local governments in the United States collected about 53.05 billion U.S. dollars through motor fuels tax.

State and local governments collected a combined $53 billion in revenue from motor fuel taxes in 2021. Most states levy per unit taxes based on how many gallons of gasoline a consumer purchases.

Raising the gasoline tax thus has the triple benefit of lowering fuel consumption, decreasing pollution, and providing an incentive for people to work at a more socially optimal level.

Funds generated from a gas tax pay for related government services like road construction, maintenance, repair, and public transportation. Because these taxes connect drivers to the costs of road upkeep, they encourage efficient road use, which helps limit congestion and the wear and tear that comes from overuse.

According to Governor Gavin Newsom's 2022–23 Proposed Budget, the motor vehicle fuel taxes generated $6.5 billion in revenue in 2021–22 and will produce an estimated $7.4 billion in 2022–23.

Sources of Federal Revenues

Individual income taxes are the largest single source of federal revenues, constituting nearly one-half of all receipts.

The federal gas tax of 18.4 cents per gallon (CPG) has not been increased since 1993 and at least eight states have gone longer.

California has the highest tax rate on gasoline in the United States. As of July 2023, the gas tax in California amounted to 77.9 U.S. cents per gallon. California has long been known as the state with the highest tax rates – and consequently some of the highest fuel prices in the country.

Gas taxes have become more regressive over time, partially because of environmentally-oriented technological change, although the share of expenditures on gas taxes declines with expenditures much less than the share of income spent on gas taxes declines with income.

How Does the State Spend Gasoline Tax Revenues? State Excise Tax Pays for Highways and Roads. In 2023-24, the state gasoline excise tax is set at 57.9 cents per gallon, and the tax is expected to raise $7.4 billion from gasoline purchases for vehicles using public roads.

Are consumers of gasoline helped or hurt by this tax why? ›

Consumers of gasoline are hurt by this tax. The tax increases the price they have to pay for each litre of gasoline, reducing their disposable income and increasing their overall cost of transportation.

Sin taxes are specific types of excise taxes that get levied against certain products and services. Products and services that could have harmful or negative effects and behaviors are subject to a sin tax. These can include tobacco, alcohol, gambling, gasoline, jet fuel, firearms, and soft drinks.

While raising the gas tax would increase government revenues, it would only do so at the expense of economic growth, jobs, and family income. Some of these negative effects are due to Americans' mobility needs.

Most state tax revenues are sourced from sales and income taxes.

Social Security is financed through a dedicated payroll tax. Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $168,600 (in 2024), while the self-employed pay 12.4 percent. The payroll tax rates are set by law, and for OASI and DI, apply to earnings up to a certain amount.

U.S. state and local motor fuel tax revenue 1977-2021

In 2021, state and local governments in the United States collected about 53.05 billion U.S. dollars through motor fuels tax.

WASHINGTON — Today, the Department of the Interior's Office of Natural Resources Revenue (ONRR) announced the disbursem*nt of $18.24 billion in revenues generated in fiscal year 2023 from energy production on federal and Tribal lands and federal offshore areas.

Gasoline expenditures averaged 2.6% of disposable personal income in the first quarter of 2022. This percentage is between the 2.4% average over the March 2015 to March 2020 period and the peak of 4.2% in 2008.

California has the highest tax rate on gasoline in the United States. As of July 2023, the gas tax in California amounted to 77.9 U.S. cents per gallon. California has long been known as the state with the highest tax rates – and consequently some of the highest fuel prices in the country.

U.S. Drivers' Gas Spending Soars Toward $562 Billion in 2022 - NerdWallet.