Depending on where you live, gas taxes can have a significant impact on your budget. Luckily for drivers in some states, gas taxes are relatively low, which means it costs less to fuel up their vehicles.
According to a Tax Foundation analysis, these are the states with the lowest gas taxes in the country. That means moving to one of these places can be one of the smartest money moves if you own a car.
Editor's note: All tax amounts have been rounded to the nearest cent.
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North Dakota
Tax rate per gallon: 23 cents
North Dakota drivers enjoy relatively low gas taxes and solidly middle-of-the-pack gas prices.
Drivers should keep other costs — such as car insurance and registration — in mind when building a budget for their vehicle.
Delaware
Tax rate per gallon: 23 cents
Delaware boasts a low gas tax, but drivers face relatively stable gas prices in the state, at an average of $2.72.
Still, bordering states such as Pennsylvania and Maryland have significantly higher gas prices.
Mississippi
Tax rate per gallon: 21 cents
Mississippi has a gas tax of around 21 cents. The low gas taxes contribute to the state's low gas prices, which currently sit at an average of $2.49.
With close proximity to the large refineries on the Gulf Coast, Magnolia State residents tend to enjoy cheaper gas costs.
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Louisiana
Tax rate per gallon: 20 cents
Louisiana is home to many oil refineries and low gas taxes. When these factors are combined, it leads to relatively low gas prices for Bayou State residents.
But for Louisiana drivers, other car costs can take a big bite out of their budget. The state has the highest car insurance costs in the nation, according to Insure.com.
Texas
Tax rate per gallon: 20 cents
Texas is another place boasting many oil refineries, which contribute to its relatively low gas prices. Because the state is close to refineries, gas delivery costs are cheaper.
Oklahoma
Tax rate per gallon: 20 cents
Oklahoma's proximity to oil refineries and its relatively low gas taxes keep driver costs low. The state boasts some of the cheapest gas prices in the country, with an average cost of $2.29 per gallon, helping keep more cash in your wallet.
Arizona
Tax rate per gallon: 19 cents
Arizona has a gas tax that matches New Mexico's. However, gas prices in Arizona are $3.08, compared to New Mexico's $2.68.
The increased gas costs for Arizona residents may be partially attributed to the increased distance from the refineries of the Gulf Coast.
New Mexico
Tax rate per gallon: 19 cents
New Mexicans enjoy relatively affordable gas prices, making it a great place to fill up for residents of Utah, Arizona, and Colorado who pass through.
Although the state's drivers get a break on gas taxes, they still have to pay other taxes. Such taxes include an income tax ranging from 1.7% to 5.9% and an average combined state and local sales tax rate of 7.67%.
Hawaii
Tax rate per gallon: 19 cents
Hawaii's gas tax rate is a relatively low 19 cents. But Hawaiians still pay some of the highest gas prices in the nation, at an average of $4.42.
On top of high gas prices, Hawaii residents face a high cost of living that is the price for putting down roots in paradise.
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Alaska
Tax rate per gallon: 9 cents
Residents of Alaska pay the lowest gas taxes in the country. However, Alaskans may still feel pain at the pump because the average price per gallon is $3.58, which is higher than the national average of $2.85.
The state's remoteness and small gasoline market contribute to above-average gas prices.
Bottom line
Drivers face very different gas taxes depending on where they live. If you are fortunate to live in a state with low gas taxes, it can help you get ahead financially.
So, if you have plans to relocate to a new city and you typically spend many hours behind the wheel of a car, one of the states on this list might be a good place to call home.
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