How Much Is Minnesota’s Gas Tax In 2026? How Does It Compare To Other States?

Gas prices have been on a pretty steady climb through much of this year, leaving people feeling a pinch at the pump.

As I write this right now, the statewide average gas price in Minnesota for regular unleaded is $4.16, according to AAA. That's thankfully less than the national average of $4.50, but it's still a lot more than it was at the beginning of the year.

By comparison, the Minnesota average was $3.73 a month ago, which is well above the $2.90 it was a year ago in the state. 

You might not think about it regularly, but a portion of those prices is state and federal taxes tagged onto the going rate of fuel.

With prices soaring, President Trump has floated the idea of a federal gas tax holiday, which would shave off some of what you pay per gallon at the pump. If that were to be implemented, it would bring the price you pay down a bit.

READ MORE: Ways To Save Money On Gas In Minnesota

The current federal gas tax rate is 18.4 cents per gallon, and the federal diesel tax rate is 24.4 cents per gallon.

Separately from that, each state has its own gas tax rate, which they also put on fuel. Here's how Minnesota compares to the Midwest and around the country.

How much is Minnesota's gas tax rate right now?

At the beginning of this year, the Minnesota gas tax rate went up to 32.6 cents per gallon, up from 31.8 cents last year.

That rate applies to both gasoline and diesel fuel in Minnesota.

While many Minnesotans gripe about having higher taxes than many other states, that rate is actually in the middle of the pack. Here's how it compares.

How does Minnesota's gas tax rate compare to other states?

Minnesota's new gas tax rate is the 22nd-highest in the country, according to data from the US Energy Information Administration (EIA). That's when factoring in

• Michigan: 53.4 cents (6th highest in the country)
• Wisconsin: 32.9 cents (20th highest in the country)
• Minnesota: 32.6 (22nd highest in the country)
• South Dakota: 30.0 cents (tied for 26th highest in the country)
• Iowa: 30.0 cents (tied for 26th highest in the country)
• North Dakota: 23.03 cents *41st highest in the country)

Compared to the national average gas tax rate of 33.27 cents per gallon, all but Michigan are lower than the national average.

On the extreme ends of the spectrum, California's rate is the highest in the country at 70.92 cents per gallon, and Alaska's is the lowest in the country at 8.95 cents per gallon.

What else makes up the price you pay at the pump in Minnesota?

When you consider the federal rate of 18.4 cents per gallon and the state rate of 32.6 cents per gallon, that's a total of 51 cents per gallon you pay in taxes in Minnesota. That works out to a little more than 12% of the total price per gallon at the pump right now on average.

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What else makes up the price of gas?

As the EIA explains on a nationwide scale, about 18% of the price at the pump is state and federal taxes, which means Minnesota comes in below that average. Here's the full breakdown of what you're paying for in each gallon of gas (on average, nationally):

While it's the most significant piece to the puzzle, only just over half of the price of a gallon of gasoline is the raw material, crude oil. A fifth of the price, on average, is turning that crude oil into gasoline, and the remaining almost one-third of that price at the pump goes to marketing, distribution, and taxes.