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Slight Gas Tax Increase In California July 1st

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Sacramento, CA — Thursday is the beginning of the new fiscal year for the state government, and it also brings a small increase to California’s gas tax.

Senate Bill 1, passed in 2017, increased both the gasoline tax and vehicle licensing fees. The extra revenue helps fund road projects in the state.

The initial gas tax increase was 12-cents, followed by a 5.6-cent increase in 2019 and a 3.2-cent increase in 2020.

SB1 allows the tax to increase with inflation, and the Board of Equalization reports that it will go up by another 0.6-cents on Thursday. The BOE notes that it will bring the state’s gas tax to 51.1-cents, which will continue to be the highest in the nation.