These 7 states will have higher gas taxes Jan. 1

A customer fills up his car at a BP gas station in New York City.
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A customer fills up his car at a BP gas station in New York City.

Motorists in nine states will see changes in gas taxes at the pump on New Year's Day, and more than a dozen states will examine adjustments in 2017.

Pennsylvania already has the largest gas tax in the country, at 50.4 cents per gallon, according to the Tax Foundation. The rate will rise 7.9 cents per gallon with the new year, based on a 2013 law.

The other big increase is in Michigan, where the gas tax is already 30.54 cents per gallon, according to the foundation. That rate will rise 7.3 cents per gallon, based on a 2015 law.

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Nebraska's rate of 27.7 cents per gallon is going up 1.5 cents per gallon, as part of a four-step hike approved in 2015.

Georgia, North Carolina, Indiana and Florida will each see modest gas-tax increases of less than a penny per gallon, based on automatic adjustments in those states, according to the Institute on Taxation and Economic Policy.

Two states — New York and West Virginia — will have slight reductions based on automatic adjustments, according to the institute. The Empire State's rate will fall 0.8 cents per gallon and Mountain State's rate will drop 1 cent per gallon.


Voters in 22 states approved ballot initiatives Nov. 8 totaling more than $200 billion for state and local transportation projects, according to the American Road and Transportation Builders Association. The funding for those measures was largely through sales and property taxes.

State legislatures are expected to debate gas taxes as new year's resolutions in 2017.

"Altogether, it appears that more than a dozen states will seriously debate gas tax changes next year," said Carl Davis, research director at the Institute on Taxation and Economic Policy.

Alaska hasn't raised its gas tax since 1970 and has the lowest rate in the country, according to the Tax Foundation. But Gov. Bill Walker proposed Dec. 15 to triple the gas tax over the next two years as part of his budget.

The current rate of 8 cents per gallon would double on July 1, 2017, and add another 8 cents per gallon on July 1, 2018, if the proposal is approved.

"We can't cut our way to prosperity," Walker said of the state cutting its budget 44% since 2013.

Meanwhile, New Jersey increased its rate by 23 cents to 37.5 on Nov. 1 in the first gas-tax hike for the state since 1988. The Garden State's previous rate of 14.5 cents per gallon had been the second-lowest in the nation after Alaska, according to the Tax Foundation. Republican Gov. Chris Christie negotiated the increase with the Democratic legislature to support road projects while also lowering sales, estate and income taxes.