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Federal and state taxes account for one-fifth, or approximately 15 percent, of the cost of a gallon of gasoline in West Virginia. We pay 50.2 cents in state and federal taxes on every gallon of gasoline we purchase. In those border states where the gas tax is lower, West Virginia retailers are negatively impacted.
Federal excise tax rates remain at $0.183/gal for gasoline and $0.243/gal for diesel fuel. The Leaking Underground Storage Tank (LUST) Fund adds an additional $0.001/gal federal fee.
The State currently imposes a severance tax of 5% on gross receipts at the well-head attributable to the production of oil and natural gas.
Gas tax total: $0.372 per gallon of gasoline Excise tax on gas in West Virginia is only $0.205 per gallon, but the state tacks on an additional $0.167 in extra taxes and fees, bringing the total to $0.372. On the bright side, West Virginia doesn't tax diesel fuel any higher than gasoline.
For tax years beginning on or after January 1, 2022, West Virginia uses a single sales factor formula. Under this formula, the numerator includes sales occurring in West Virginia and the denominator includes sales occurring everywhere.
California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (62.2 cpg). The lowest state gas tax rates can be found in Alaska at 9.0 cents per gallon, followed by Missouri (17.5 cpg) and Mississippi (18.4 cpg).
Some customers are exempt from paying sales tax under West Virginia law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
Gas Tax by State StateGasoline TaxUndyed Diesel TaxVirginia$0.262/ gallon$0.27 / gallonWashington$0.494 / gallon$0.494 / gallonWest Virginia$0.372 / gallon$0.372 / gallonWisconsin$0.309 / gallon$0.309 / gallon48 more rows