California Gas Tax Increases 12 Cents per Gallon Effective Nov. 1

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California gas tax repeal

The California gas tax and diesel tax increases will take effect starting on Wednesday, November 1, 2017.

In April, Gov. Jerry Brown signed Senate Bill 1, which authorizes a gas tax increase of 12 cents per gallon. The law also authorizes a diesel tax hike of 20 cents per gallon.

The increase means Californians are now paying a total of 41.7 cents in state excise tax on gasoline, up from 29.7 cents per gallon. The state excise tax on diesel went up 36 cents per gallon from 16 cents per gallon.

The California sales and use tax rate on gasoline will remain at 2.25%. The state sales and tax rate on diesel will go up 4% from 9% to 13%. The sales tax rate for qualified agricultural use of diesel remains at 2.25%.

Other fees under Senate Bill 1

Additionally, under Senate Bill 1, a new annual transportation improvement fee between $25 and $175 will take effect on January 1, 2018. The fee will be based on the vehicles value with an inflation adjustment

The law also authorizes a new annual vehicle registration fee of $100 for zero-emission vehicles model year 2020 and later. Drivers will start paying this fee on July 1, 2020.