Estimated Impact of California Taxes, Fees & Costs of Climate Programs
Average as of August 2026
Californians pay among the highest gas prices in the nation, due in part to the state’s taxes, fees and climate programs. Here is how much those programs increase your costs at the pump.
| Tax, Fee or Program | Cents per Gallon | % of Total |
|---|---|---|
| State Excise Tax | 63¢ | 43% |
| Federal Excise Tax | 18¢ | 12% |
| Low Carbon Fuel Standard | 23¢ | 16% |
| Cap-and-Trade | 28¢ | 19% |
| State & Local Sales Tax | 12¢ | 8% |
| State Underground Storage Tax | 2¢ | 2% |
| Total | $1.46 Total Per Gallon | 100% |
Source: U.S. Energy Information Administration; California Department of Tax and Fee Administration; Low Carbon Fuel Standard based on OPIS methodology; Cap-and-Trade based on most recent Auction Settlement Price for California Carbon Allowances. All information accessed in September 2026.
Disclaimer: This table is based on average historical gas prices and is not a forecast of future gas pricing. The basic rules of supply and demand have an impact on the price of gasoline. Additionally, local taxes and fees also account for the cost of gasoline to consumers. This figure assumes all businesses pass on the entire cap-and-trade costs; however, WSPA does not have knowledge on whether individual companies pass on the costs and does not discuss or comment on whether they should do so.
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