A longer version of this article originally appeared in the Washington State Standard.
Washington’s century-old fuel tax is going up again.
On Tuesday, the gasoline tax will rise by six cents a gallon, the first increase in nine years for the primary revenue source sustaining Washington’s transportation system.
The hike is the most prominent piece of a six-year, $3.2 billion package passed by the Legislature and signed by Gov. Bob Ferguson earlier this year.
Lawmakers turned to the tax to contend with a projected $1 billion shortfall in the next two-year transportation budget. Officials said this was caused by an inflation-fueled surge in construction costs and flattening gas-tax receipts as more drivers opt for electric vehicles and as cars have become more fuel-efficient.
“This will keep projects on track and ensure the promises we’ve made can be kept,” said Sen. Marko Liias, D-Edmonds, chair of the Senate Transportation Committee. “As you drive around and see those orange cones, that’s where your money is at work.”
Tuesday’s increase will push the state’s per-gallon tax rate on gas and other vehicle fuels from 49.4 cents to 55.4 cents. Starting July 1, 2026, it will rise each year by 2% — about a penny annually — to account for inflation.
Also Tuesday, the state tax on diesel will climb an additional three cents, so nine cents total, to 58.4 cents, then go up another three cents two years later. That additional six cents applied to diesel will be subject to a 2% boost each year starting July 1, 2028.
Washington will have the nation’s third-highest state gas tax behind California and Pennsylvania. Connecticut is currently at 52.4 cents, according to the Federation of Tax Administrators.
Washington’s state tax is on top of federal fuel taxes, which are 18.4 cents for gasoline and 24.4 cents for diesel.
Hiking the gas tax is expected to raise $1.4 billion over the next six years. The diesel tax is counted on to bring in $166 million over that time.
These increases are two of the larger entrees in the transportation package’s smorgasbord of new taxes and higher fees.
Under the legislation, passenger vehicle weight fees are going up a few dollars. The added sales tax for vehicles will climb from 0.3% to 0.5%.
There’s also a new 8% tax on the portion of the selling price of vehicles above $100,000 and a 10% tax on non-commercial aircraft sales above $500,000.
There’s a temporary increase in the rental car tax as well, from 5.9% to 11.9%, before moving down to 9.9% in 2027.
And there’s more.
The tire disposal fee will go from $1 apiece to $5 apiece. Washington State Ferries will boost its vessel replacement surcharge by 50 cents in October and start imposing a 3% fee for those who pay with credit cards next year.
Washington State Standard published a longer version of this article on June 30, 2025.
