California drivers are once again preparing to pay more at the pump.
A new notice issued by the California Department of Tax and Fee Administration (CDTFA) shows that the state’s gasoline excise tax will increase from 61.2 cents per gallon to 63.4 cents per gallon beginning July 1, 2026, adding another cost burden for motorists already paying some of the highest fuel prices in the nation.
The increase comes as California gas prices remain far above the national average and amid growing concerns about affordability throughout the state. According to the CDTFA notice, the excise tax on gasoline will rise by 2.2 cents per gallon. Diesel fuel taxes will also increase, climbing from 46.6 cents per gallon to 48.2 cents per gallon. The changes will remain in effect through June 30, 2027.
The agency says the annual adjustment is required under California law and is tied to inflation. The increases stem from legislation approved in 2017 that raised fuel taxes and linked future increases to changes in the California Consumer Price Index.
California sends out its annual notice that the state’s gas tax is going up another 2 cents.
The state’s gas tax will be 63.4 cents per gallon of regular starting July 1. pic.twitter.com/Q1QaQmZsn9
— Ashley Zavala (@ZavalaA) June 2, 2026
Critics argue the latest increase could not come at a worse time. California drivers already face the highest state gasoline tax in America.
The current gas tax of 61.2 cents per gallon is more than double the rate Californians paid a decade ago. The tax stood at just 27.8 cents per gallon before the 2017 transportation funding package took effect.
The state has defended the tax hikes as necessary to maintain roads, highways, and bridges. The latest increase arrives as California residents continue to contend with elevated housing costs, rising utility bills, and some of the most expensive gasoline prices in the country. Industry groups and Republican lawmakers have also warned that additional state regulations and refinery closures could place further pressure on fuel supplies in the years ahead.
The CDTFA notice additionally raised gasoline sales-tax prepayment rates from 7.5 cents per gallon to 8 cents per gallon beginning July 1, another adjustment tied to fuel pricing formulas used by the state.
The price spike is drawing additional attention because it coincides with California’s gubernatorial primary election on Tuesday. Voters are heading to the polls to help determine who will replace Gov. Newsom, whose term is coming to an end.
Affordability has emerged as one of the dominant issues in the race, with candidates facing questions about how they would address the state’s soaring cost of living. Former Health and Human Services Secretary Xavier Becerra has been leading in many recent polls, while Republican Steve Hilton and Democrat Tom Steyer have been battling for a spot in the general election under California’s top-two primary system.
For California drivers, the result is familiar: another summer, another increase at the pump. And with the new tax rates set to take effect just before the Independence Day holiday travel season, millions of motorists may soon feel the impact every time they fill up.
