If you’re reading this post, it probably means that you haven’t started your long July 4th holiday yet. Sorry. I share your delayed break frustration.
Millions of Americans, however, are on the road or have already arrived at their Independence Day destination.
Increased July 4 travel: AAA expects 72.2 million people will travel at least 50 miles or more from home over the Fourth of July holiday period, which it defines as from Saturday, June 28, to Sunday, July 6. That forecast is an increase of 1.7 million travelers compared to last year.
The calendar is a major factor.
“With the holiday falling on a Friday, travelers have the option of making it a long weekend or taking the entire week to make memories with family and friends,” said Stacey Barber, Vice President of AAA Travel.
Most of the travel, says AAA, will be by car. The organization projects 61.6 million people will hit the nation’s highways, a 2.2 percent increase over last year, and the highest volume on record.
A reason for the vehicular travel, says AAA, is that early summer gas prices are the lowest they’ve been since 2021. The national average for regular grade gasoline is, as of today (July 3), $3.162 per gallon.
Taxes add to pump prices: Lower fuel costs are always welcome, but they are especially good news for drivers in 12 states where gas excise taxes went up on July. The fuel tax hikes were among the many state tax changes take effect July 1
But when pump prices are relatively low, the gas tax hikes are not that noticeable, or at least not drastic enough to spark widespread motorist anger.
The table below shows the dozen states where drivers began paying higher state gasoline excise taxes on July 1.
|
State |
Increase in cents |
July 1, 2025, gas tax rate |
|
Alabama |
1 cent |
30 cpg |
|
California |
1.6 cents |
61.2 cpg |
|
Colorado |
4 cents |
34 cpg |
|
Illinois |
1.3 cents |
48.3 cpg |
|
Indiana |
1 cent |
36 cpg |
|
Minnesota |
3.3 cents |
31.8 cpg |
|
Mississippi |
3 cents |
21 cpg |
|
Missouri |
2.5 cents |
29.5 cpg |
|
Nebraska |
1.4 cents |
31.8 cpg |
|
Rhode Island |
1 cent |
38 cpg |
|
Virginia |
0.9 cent |
31.7 cpg |
|
Washington |
6 cents |
55.4 cpg |
There’s better tax news for some motorists. They saw a drop in their gasoline taxes this month. That’s the case in Maryland, Connecticut, and Kentucky.
Wherever you’re spending the July 4 holiday, travel safely. And if you’re driving, make sure your travel budget has enough to cover fuel costs, taxes included.
You also might find these items of interest:
- Myriad state tax changes take effect July 1
- GOP transportation bill calls for federal EV, hybrid fees
- Electric vehicle tax credit could end in just three months
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