Fuel taxes are shifting across the country in 2026 with some states raising rates to fund infrastructure, others pumping the brakes to give drivers relief. Here's a concise rundown of what's changed and what it means for carriers running multi-state routes.
States That Raised Fuel Taxes
Michigan made the most significant structural change, increasing its diesel excise tax by 1.7 cents per gallon to 52.4 cents. The state eliminated its sales tax on fuel entirely and rolled everything into a higher excise tax, ensuring all fuel tax revenue goes directly to transportation infrastructure.
New Jersey implemented one of the largest single increases, raising diesel taxes by 4.2 cents per gallon to a combined total of 56.1 cents — one of the highest rates in the country.
Minnesota, Georgia, and North Carolina also posted increases in the first quarter of 2026, primarily through automatic adjustment formulas tied to inflation or fuel prices.
California raised its gasoline excise tax from 61.2 cents to 63.4 cents per gallon under its annual inflation adjustment, continuing its pattern of incremental increases.
Maryland added 0.6 cents per gallon through its inflation-indexed adjustment, bringing its motor fuel tax to 46.6 cents, with revenue directed to the state's Transportation Trust Fund.
Mississippi raised its diesel excise tax by 3 cents per gallon as part of a multi-year overhaul of its fuel tax structure.
States That Froze or Cut Fuel Taxes
Kentucky went the opposite direction, reducing its state fuel tax by 10 cents per gallon and freezing a previously anticipated increase, bringing its diesel tax down to 12 cents per gallon — one of the lowest in the nation.
Illinois froze a planned July 1 increase that would have added 1.3 cents per gallon. Lawmakers cited economic pressure on families and businesses as the reason for hitting pause on the automatic inflation-tied hike.
Nebraska, Pennsylvania, and West Virginia all allow automatic adjustments but held their rates steady going into 2026.
The Bigger Picture
With national diesel prices averaging over $5.60 per gallon in some markets, several state legislatures are also debating temporary fuel tax holidays to ease the burden on commercial trucking and consumers alike. The pressure is real — and for carriers running IFTA-reportable miles across multiple states, every per-gallon change affects quarterly fuel tax calculations.
The patchwork of increases, freezes, and reductions makes route planning and cost-per-mile calculations more important than ever. Carriers who know their numbers going in are the ones who stay profitable when the tax map keeps shifting.
Drive for a Carrier That Manages the Complexity for You
At ProSport Express, our drivers don't have to navigate fuel cost volatility alone. As a company-employed CDL driver with ProSport, you're running on company-owned equipment with fuel programs and back-office support built in — not absorbing every pump price swing out of your own pocket.
We're actively hiring CDL drivers across all run types:
- OTR Teams & Solo — Long-haul miles, competitive pay
- Dedicated — Set routes, reliable home time
- Expedited — Fast freight, strong earnings
- Regional — Strong miles, more time at home
- Local — Home every day
Apply at prosportexpress.com or call 1-833-PRO-4YOU.
ProSport Express - Always There. Always On Time.
