How much is the gas tax in Michigan in 2025?

Michigan's motor fuel excise tax is about 31 cents per gallon in 2025 for both gasoline and diesel. The rate is adjusted each January based on inflation, so it ratchets up over time. On top of the excise, Michigan also applies its 6% state sales tax to gasoline, and the federal excise adds 18.4 cents per gallon on gasoline and 24.4 cents on diesel.

Does Michigan charge sales tax on gasoline?

Yes. Michigan is one of the few states that applies its general 6% sales tax to motor fuel in addition to the per-gallon excise. The sales tax is calculated on the pre-tax pump price, so the exact amount depends on the price of gas. This calculator includes an optional sales-tax estimate based on a price-per-gallon you enter.

Why does Michigan's gas tax change every year?

Michigan indexes its motor fuel excise tax to inflation under 2015 road-funding legislation. Each January 1 the Department of Treasury recalculates the rate using the prior year's inflation, which is why the figure creeps upward annually. Always confirm the current-year rate with the Michigan Department of Treasury.

Is the gas tax already included in the pump price?

Yes. Both the Michigan excise and the federal excise are built into the per-gallon price you see at the pump rather than added at checkout. The 6% sales tax is also embedded in the displayed price. This calculator extracts the tax portion so you can see how much of your annual fuel spend goes to state and federal road and general funds.

How do I work out my gas tax per mile?

Divide the combined per-gallon excise by your vehicle's fuel economy. For roughly 49 cents per gallon of combined Michigan and federal gasoline excise and a car getting 25 MPG, that is 0.49 / 25 = about 2 cents of fuel tax per mile. The annual-mileage mode shows this figure automatically.

Michigan Gas Tax Calculator 2025 — 31¢/gal State Excise + 6% Sales Tax

Michigan charges a motor fuel excise tax of about 31 cents per gallon in 2025 on both gasoline and diesel, and it is unusual in also applying its 6% general sales tax to fuel. The excise rate is indexed to inflation and recalculated every January, so it climbs over time. This calculator applies the real Michigan excise plus the federal excise (18.4¢ gasoline, 24.4¢ diesel) to either your annual mileage or your tank size and fill-up frequency, with an optional 6% sales-tax estimate, then shows the total fuel tax you pay each year and your tax per mile.

How it works

The tool first figures out how many gallons you buy per year, then multiplies by the per-gallon excise rates.

Annual-mileage mode estimates gallons from how far you drive and your fuel economy:

Gallons = Miles driven ÷ MPG

Tank mode estimates gallons from your tank size and fill frequency:

Gallons = Tank size × Fill-ups per year

Each rate is then applied separately:

State excise = Gallons × Michigan excise Federal excise = Gallons × Federal excise Sales tax = Gallons × Price per gallon × 6% (optional)

In annual mode the tool also divides the combined per-gallon excise by your MPG to show the tax-per-mile from fuel excise.

Michigan fuel tax explained

Under 2015 road-funding legislation, Michigan ties its motor fuel excise to inflation and recalculates it each January 1. As of 2025 the rate is around 31 cents per gallon for both gasoline and diesel. Unlike most states, Michigan also applies its 6% sales tax to fuel, so the total tax burden on a gallon of gas is higher than the excise alone suggests.

Federal excise has been fixed since 1993 at 18.4 cents per gallon for gasoline and 24.4 cents for diesel.

Worked example

A commuter drives 12,000 miles per year in a car that gets 25 MPG on gasoline:

Gallons = 12,000 ÷ 25 = 480 gallons
Michigan excise = 480 × $0.31 = $148.80
Federal excise = 480 × $0.184 = $88.32
Total fuel excise = $237.12 per year (before 6% sales tax)
Tax per mile = $0.494 ÷ 25 = $0.0198 per mile

Note: Michigan’s excise rate is indexed and changes each January. This calculator uses an approximate current-year rate; verify the exact figure with the Michigan Department of Treasury at michigan.gov/treasury.

Michigan Gas Tax Calculator 2025 — 31¢/gal State Excise + 6% Sales Tax

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How it works

Michigan fuel tax explained

Worked example