California Fuel Tax Increase Effective November 1, 2017
To Our Valued Business Partners:
On April 28th of this year, Governor Brown signed California Senate Bill 1 (SB1), The Road Repair and Accountability Act of 2017, increasing the excise tax rates on gasoline and diesel fuel as well as the sales tax rate on diesel fuel.
Please note there are no changes to federal excise taxes at this time.
For fuel purchases that you make effective November 1, 2017:
- The state excise tax for gasoline is increasing from 29.7 cents per gallon to 41.7 cents per gallon
- The state excise tax for diesel fuel is increasing from 16 cents per gallon to 36 cents per gallon
- The state sales tax rate for diesel fuel is increasing from 9.00% to 13.00%.
- The state sales tax rate for off-road, red diesel fuel remains unchanged at 7.25%
- The state sales tax rate for gasoline remains unchanged at 2.25%
Sales tax rates may be higher in certain Counties, Cities, and other sales tax districts where voters approved supplemental sales taxes.