Michigan Motorists Issues

How do Michigan Gas taxes really compare?

Due to the way Michigan taxes gasoline they have one of the highest gas taxes in the nation.

There have been reports that Michigan does not tax gasoline as much as many other states but these are NOT telling the WHOLE truth.  These reports are focusing on the excise portion of the gas tax.  However, Michigan not only applies 19 cents per gallon excise tax but

MICHIGAN ALSO CHARGES 6% sales tax on Gasoline.  The 6% is applied to the sell price of the gasoline after the federal 18.4 cent excise tax is added on.

As of April 2013, Michigan has the 5th highest overall gas tax in the nation!

Here is a link to the American Petroleum Institute Summary on fuel taxes:

Ever wonder why OHIO gas is cheaper?  Lets compare.


In Michigan the sales tax is applied to the actual sales cost + Federal Tax. So Michigan not only is taxing gasoline for non-road use (the sales tax revenue goes to the general fund - not roads) but also is taxing a tax.

Total fuel price per gallon assuming a sale price of 320 cents per gallon is 320 + ((320 + 18.3) * .06)) + 18.3 + 19 = $3.77 per gallon.


Total fuel price gallon assuming a sale price of 320 cents per gallon is 320 + 18.3 + 22 = $3.60 cents per gallon