California

California gas tax goes up again tomorrow. Here's what to know

California’s gas tax increases 2.2 cents to 63.4 cents on July 1, with diesel up 1.6 cents. The automatic CPI-tied hike funds road repairs and keeps the state highest in the US.
California’s gas tax increases 2.2 cents to 63.4 cents on July 1, with diesel up 1.6 cents. The automatic CPI-tied hike funds road repairs and keeps the state highest in the US. Getty Images

California drivers will pay more at the pump starting Wednesday, July 1, when the state’s gas tax climbs another 2.2 cents per gallon. The increase is part of an annual adjustment tied to inflation under a 2017 state law.

FULL STORY: Why are California gas prices expected to rise again July 1? Here’s what to know

Here are key takeaways:

  • The California Department of Tax and Fee Administration said the gasoline tax will rise to 63.4 cents per gallon from the current 61.2 cents, keeping California’s gas tax the highest in the nation.
  • Diesel taxes will also climb, going up 1.6 cents to 48.2 cents per gallon from 46.6 cents, the agency said.
  • Gov. Gavin Newsom’s office said the annual hike is automatic. It’s tied to the California Consumer Price Index and was enacted by the Legislature in 2017 to fund road repairs and address inflation.
  • Voters rejected an attempt to repeal the gas tax in 2018, according to the governor’s office.
  • AAA pegged the current average price for a gallon of regular gas in California at $5.46.

The summary points above were compiled with the help of AI tools and edited by journalists. The full story in the link at top was reported, written and edited entirely by journalists.

This story was originally published June 30, 2026 at 5:00 AM.

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Don Sweeney
The Sacramento Bee
Don Sweeney has been a newspaper reporter and editor in California for more than 35 years. He is a service reporter based at The Sacramento Bee.
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