Maryland gas tax to increase by 1.3% on July 1, 2026
Maryland's gas tax is set to increase on July 1, with the Comptroller's Office raising the tax rate from 46 cents to 46.6 cents per gallon.
The new rate represents a 1.3% increase from the current rate. The gas tax for diesel fuels will increase by 1.5% from 46.75 cents to 47.45 cents per gallon.
The comptroller's office is required by law to determine the gas tax rates each year. This year's changes represent the first increase after two years of declines.
"The new motor fuel tax rates are the product of the base motor fuel tax rates (exclusive of the SUTE) prior to this determination, multiplied by the annual year-over-year change in the seasonally adjusted CPI for the periods ending in April as reported on May 12, 2026, by the U.S. Bureau of Labor Statistics," the comptroller's office said in a report.
The current federal gas tax is 18.4 cents per gallon for regular and 24.4 cents per gallon for diesel.
As of June 2, the average cost of gas in Maryland is $4.14, according to AAA. Last month's average for regular gas was $4.26, and this time last year, the average was $3.04. The current national average is $4.29, according to AAA.
Gas prices have surged since the start of the Iran war in February, with costs jumping nearly 52% in May.
"Although Middle East geopolitical shocks triggered a spike in gasoline prices beginning in early March, the average price over the full 12-month determination period was lower than the prior year," the comptroller's office said.
According to the Comptroller's Office, the gas tax is likely to increase again in July 2027.
Maryland House Republicans criticized the move, saying, "Marylanders are struggling with high gas prices. While we cannot control federal policy in the Middle East, we can control Maryland's tax policy here at home."