Washington just suffered another gas tax increase; more than 6 times Alaska’s

By SUZANNE DOWNING

July 6, 2026 – Washington state motorists are paying even more at the pump after the state’s gasoline tax automatically increased again on July 1, widening an already big gap between drivers in Washington and neighboring Alaska.

The latest increase raised Washington’s state gasoline tax from 55.4 cents to 56.5 cents per gallon, the first annual inflation adjustment under a 2025 law that automatically increases the tax each year. The 1.1-cent increase follows a much larger 6-cent increase that took effect last year as part of the same transportation funding package.

For Alaskans, the comparison is dramatic: Alaska’s state gasoline tax remains 8.95 cents per gallon, making it still the lowest state gas tax in the nation. Washington’s 56.5-cent tax is more than six times higher, a difference of 47.55 cents per gallon before either state adds the identical federal gasoline tax of 18.4 cents.

Drivers in Washington pay roughly 75 cents per gallon in basic federal and state fuel taxes combined, compared to about 27.35 cents in Alaska.

The higher tax burden helps explain why Washington continues to rank among the nation’s most expensive states for gasoline, although taxes are only part of the equation. Washington also operates a carbon pricing program that adds additional costs to fuel beyond the basic excise tax, while Alaska does not have a comparable statewide program.

According to AAA, Washington’s statewide average for regular gasoline is about $5.05 per gallon, compared to Alaska’s statewide average of approximately $4.76 per gallon, a difference of about 29 cents (it ranges from 6.00 to over $11.00 in more remote places.) Even with Alaska’s much lower fuel tax, however, gasoline prices remain well above the national average because of the state’s unique geography, transportation costs, limited refining capacity, and the expense of supplying fuel to remote communities.

Pump prices vary considerably across both states. Seattle-area stations often sell regular gasoline for $5.40 to $5.60 per gallon or more, while Alaska ranges from around $4.70 in parts of Southeast to well above $6 per gallon in some rural communities.

Washington’s automatic inflation adjustment pays for higher costs of transportation projects as construction costs rise. But the annual increases amount to automatic tax hikes that occur without requiring lawmakers to cast another vote each year.

The contrast highlights two very different approaches to transportation funding.

Washington relies on one of the nation’s highest fuel taxes to finance highways and transportation infrastructure. Alaska, an oil-producing state with a much smaller population and different revenue structure, has maintained one of the country’s lowest gasoline tax rates for decades. In 2008 (effective Sept. 1, 2008, to Aug. 31, 2009), the Alaska Legislature suspended the state’s motor fuel tax for one year amid high gas prices. The Alaska tax brings in about $30 million a year to the state coffers.