Gasoline taxes make up a significant share of what drivers pay at the pump, but the size of that tax varies dramatically by region. From 1990 to 2025, the United States, Europe, and China followed very different paths in how much tax they place on each gallon of gasoline.
All values below are shown in USD per gallon and represent excise-type fuel taxes only. For Europe and China, VAT is excluded unless explicitly stated.
United States: Persistently Low
In the United States, gasoline taxes consist of a federal excise tax plus state excise taxes.
- The federal gasoline tax has been 18.4 cents per gallon since 1993, unchanged for over 30 years.
- State gasoline taxes rose slowly, adding roughly 20 to 35 cents per gallon depending on the period.
Estimated Average U.S. Gasoline Tax
| Year | Dollars per Gallon |
|---|---|
| 1990 | $0.28 |
| 2000 | $0.40 |
| 2010 | $0.45 |
| 2020 | $0.49 |
| 2025 | $0.50 |
Even in 2025, the U.S. remains one of the lowest-tax gasoline markets in the developed world, largely because there is no national VAT on fuel and the federal tax is not inflation-indexed.
Europe: The Highest Gasoline Taxes
In Europe, gasoline taxes are substantially higher and have increased steadily over time. Most European countries apply:
- A high excise duty per litre
- VAT on top of the fuel price and excise tax
Below are excise taxes only, converted to dollars per gallon. VAT would increase these numbers further.
Estimated Average European Gasoline Excise Tax
| Year | Dollars per Gallon |
|---|---|
| 1990 | $1.90 |
| 2000 | $2.30 |
| 2010 | $2.60 |
| 2020 | $2.80 |
| 2025 | $3.00 |
By 2025, European gasoline excise taxes alone are roughly six times higher than in the United States. When VAT is included, total tax per gallon in many EU countries exceeds $3.80 to $4.50 per gallon.
China: Gradual and Moderate Increases
China historically relied on fuel price controls rather than heavy gasoline taxation. That changed in the late 2000s with the introduction of a formal fuel excise tax.
China’s gasoline excise is set per litre and adjusted occasionally rather than annually.
Estimated Average China Gasoline Excise Tax
| Year | Dollars per Gallon |
|---|---|
| 1990 | $0.05 |
| 2000 | $0.15 |
| 2010 | $0.60 |
| 2020 | $0.90 |
| 2025 | $1.05 |
China now taxes gasoline more heavily than the U.S., but still far below typical European levels. Its approach reflects a balance between revenue, fuel affordability, and energy security.
Side-by-Side Comparison (Dollars per Gallon)
| Year | United States | Europe | China |
|---|---|---|---|
| 1990 | $0.28 | $1.90 | $0.05 |
| 2000 | $0.40 | $2.30 | $0.15 |
| 2010 | $0.45 | $2.60 | $0.60 |
| 2020 | $0.49 | $2.80 | $0.90 |
| 2025 | $0.50 | $3.00 | $1.05 |
What This Shows
From 1990 to 2025, gasoline taxation followed three distinct philosophies:
- United States: Keep fuel taxes low and politically stable
- Europe: Use gasoline taxes as a major revenue and climate-policy tool
- China: Gradually raise fuel taxes while maintaining affordability
