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BOE Member George Runner

California’s Gas Tax Lowers Today

Good news: California’s excise tax on gasoline decreases today by six cents per gallon, from 36 cents to 30 cents per gallon.

The lower rate will help correct the over collection of tax brought about by lower gas prices. Essentially, taxpayers had given government an interest-free cash advance.

State law requires the Board of Equalization to annually adjust the state excise tax rate on gasoline by March 1 of each year. The Board approved the six cent tax rate reduction during its February 2015 meeting.

Unfortunately, this cut won’t fully offset the cost of the ‘hidden gas tax’ that went into effect this year to fund Governor Brown’s High Speed Rail project and other so-called anti-global warming efforts.

And even with the lower rate, Californians will continue to pay some of the highest gas taxes in the nation. According to the latest information from, California has one of the highest average gas prices in the nation.

The new 30 cent per gallon tax rate will remain in effect until June 30, 2016.