(Gas) Tax Day: How much are you paying?

Today is April 18, also known as Tax Day in the United States. Since we're car enthusiasts and not accountants, we decided to ignore the half-finished 1040 on the kitchen table and take a look at a tax that means a lot more to us--the gas tax.

The gas tax is the portion of every gallon that pays for road maintenance and other transportation projects. And it's actually a mix of three taxes. First is the federal tax, which is currently 18.4 cents per gallon. Then you have the state excise tax, which varies by state but is averaging 20.6 cents per gallon. Lastly, there are other state taxes and fees, which vary from 0.2 cents to almost 19 cents per gallon.

API
Gas taxes by state.

Of the total taxes by state, New York and California are the highest, at more than 65 cents per gallon. Connecticut and Illinois taxes are a bit less, but still more than 60 cents per gallon. On the low end are Wyoming and New Jersey, both at less than 35 cents per gallon.

The noncontiguous states are outliers, with Hawaii being very high while Alaska is very low because of its proximity to the actual wells.

Tax Freedom Day was April 12. That is the day by which you have earned enough money to pay all of your taxes for the year, and the money you make starts being your own. So, we think it's time to start a new holiday, Gas Tax Freedom Day.

Say your car gets a combined fuel economy of 25 mpg and you drive 12,000 miles per year. The average price for gasoline as of April 15 is $3.80 per gallon, which means that you spend $1,824 on gasoline per year. Twelve percent of that amount goes directly to gas taxes.

You can find out more at www.fueleconomy.gov and at www.api.org, the Web site of the American Petroleum Institute.

So, after about 60 gallons, or 1,500 miles, your gas tax is paid for the year. Gas Tax Freedom day should land around Feb. 15. We're envisioning a countrywide celebration, complete with T-shirts, streamers and fireworks--not to mention gasoline discounts all over the country.

Now call your congressional representative and get Gas Tax Freedom Day recognized locally and globally. Or just acknowledge it next year when you dump your 60th gallon in the tank.

Happy Tax Day!

By Jake Lingeman