With the second half of the year on the way, truck drivers are going to see increased fuel prices in 12 different states due to rising fuel taxes. Although some states’ have experienced increases that are less than a cent, other states’ taxes on diesel will be immediately noticeable. And, all of the following fuel tax increases took effect on July 1.
Tax rate shifts in a dozen states – from Connecticut to Virginia
In Connecticut, the diesel tax rate increased by 2.6 cents per gallon from 43.9 cents to 46.5 cents per gallon. Diesel taxes in this state are set to vary, mostly based on changes in average fuel price. The state’s new rate is still well below its peak of 54.9 cents in 2013, according to the Institute on Taxation and Economic Policy.
On the other hand, truckers in Illinois will notice the most sizeable increase in fuel prices, as the tax rate jumped by 24 cents on July 1. The increase in diesel tax went up from 21.5 cents per gallon to the current 45.5 cents per gallon. And, further east, the diesel tax in the state of Indiana increased by 1 cent, reaching 49 cents per gallon.
In the state of Maryland, diesel taxes increased by 1.35 cents per gallon, adding it up to a total of 37.45 cents per gallon. Going north, the fuel tax in Michigan went up by 0.2 cents per gallon to 16 cents per gallon. Tax rates in Michigan vary on a monthly basis alongside changes in fuel price. Also, the state of Montana increased its diesel tax by 0.2 cents per gallon to 29.5 cents per gallon.
Nebraska has also increased its diesel tax by 0.1 cents to 29.7 cents per gallon. As in Illinois, truckers in Ohio experienced a sizeable increase at the pump starting from July 1. Ohio’s new diesel tax is 47 cents per gallon, which is 19 cents more than before the tax rises.
Rhode Island had first tax increase since 2015, despite the laws allowing adjustments every two years. The state experienced a rise of its fuel taxes by a penny to 34 cents per gallon. Drivers along the I-81 corridor in Virginia saw a 7.7 cent diesel fuel tax increase to help fund improvements along the interstate. The diesel tax along this corridor is now 28 cents per gallon.
South Carolina and Tennesse – multiple parts of tax increase
The diesel tax in South Carolina jumped 2 cents Monday as the third stage of a six-part increase and the state’s new diesel tax is 22 cents per gallon. The state’s new diesel tax is increasing each year through 2022, topping out at 28 cents per gallon. Also, the diesel tax in Tennessee increased by 3 to 27 cents per gallon in the final stage of a three-year plan to increase fuel taxes.