The Oregon gas tax is 40 cents per gallon on both gasoline and diesel, charged by the state and collected at the pump. Add the federal excise tax of 18.4 cents on gasoline (24.4 cents on diesel), and the combined government tax on a gallon of regular gas is roughly 58 cents before any local city tax.1Oregon Department of Transportation. Current Fuel Tax Rates The rate has been steady since January 2024, and voters rejected a proposed increase to 46 cents in May 2026 by more than 80 percent.2Oregon Secretary of State. Measure 120 Results
What You Pay at the Pump
The state motor vehicle fuel tax is $0.40 per gallon on gasoline. Diesel and other alternative fuels fall under Oregon’s “use fuel” category, which carries the same $0.40 per gallon rate. Use fuel is broader than most drivers assume: petroleum diesel, biodiesel, renewable diesel, propane, compressed natural gas, liquefied natural gas, hydrogen, and used-cooking-oil biodiesel are all included.3Oregon Department of Transportation. Use Fuel
The federal excise tax layered on top has not changed since 1993: 18.4 cents per gallon on gasoline, 24.4 cents on diesel.4U.S. Energy Information Administration. Many States Slightly Increased Their Taxes and Fees on Gasoline Under ORS 646.932, stations must post the per-gallon amount of federal, state, and local fuel taxes, so the breakdown is visible on the pump itself.1Oregon Department of Transportation. Current Fuel Tax Rates
How the Rate Reached 40 Cents
Before 2018, the state gas tax was 30 cents per gallon. The Keep Oregon Moving Act (House Bill 2017) set up a schedule of four increases tied to accountability milestones rather than automatic calendar dates.5Oregon Department of Transportation. HB 2017 Overview Four cents was added on January 1, 2018, followed by two-cent increases on January 1 of 2020, 2022, and 2024.6Oregon Department of Transportation. HB 2017 Conditional Fuels Tax Increase Report
Each step could only take effect after the Oregon Transportation Commission reported to the Joint Committee on Transportation that transparency requirements had been met and prior funds had gone to promised road projects. All four increases cleared those hurdles. With the HB 2017 schedule fully implemented, no additional automatic increases are on the books.
The 2026 Ballot Rejection
In the May 2026 primary, voters were asked whether to raise the state gas tax from 40 to 46 cents, along with increases to registration and title fees. Measure 120 failed with nearly 83 percent voting no on about 1.2 million ballots cast.2Oregon Secretary of State. Measure 120 Results The result leaves the state rate unchanged.
Separately, the 2025 legislature considered HB 2025, which would have restructured transportation funding with a mandatory per-mile road usage charge starting with electric vehicles on July 1, 2026, plus other fee increases. If you drive an EV or a commercial vehicle, check the current status with ODOT before assuming it did or didn’t take effect.
Local City Gas Taxes
Cities and counties can add a local fuel tax on top of the state rate, but only with voter approval. ORS 319.950 requires the governing body to put the proposed tax on the ballot before enacting it.7Oregon Public Law. Oregon Revised Statutes 319.950 – Election Required for Local Tax on Motor Vehicle Fuel Oregon law does not cap the local rate.
Roughly 22 local jurisdictions currently collect one. Most fall in the one- to five-cent per gallon range. Eugene, for example, charges five cents per gallon.8City of Eugene. Local Gas Tax Retailers who collect the state tax handle local collections at the same time, so nothing shows up as a separate charge on your receipt.
If You Drive an Electric Vehicle
EVs skip the pump, so Oregon collects from them through registration fees and an optional per-mile program instead. As of late 2025, the annual fee for all-electric vehicles rose by $30 to $145 per year. Vehicles rated at 40 mpg or above saw the same $30 increase, bringing their surcharge to $65.9Oregon Department of Transportation. New DMV Fees Plug-in hybrids and conventional hybrids rated below 40 mpg pay between $20 and $25 per year.10Alternative Fuels Data Center. Electric Vehicle and Vehicle Efficiency Fees
OReGO is the voluntary alternative. Enrolled drivers pay two cents per mile driven and receive a credit for any gas tax they paid at the pump.11Oregon Department of Transportation. OReGO – Oregon Road Usage Charge Program For EV owners and drivers of high-mpg vehicles, enrolling can reduce or eliminate the annual registration surcharge.
Getting a Refund for Non-Highway Fuel
If you buy gasoline for equipment that never touches a public road, the state tax is refundable. Oregon allows refunds for fuel used in stationary engines, tractors, commercial boats, chain saws, lawn mowers, and similar small engines, and for fuel burned on private roads or private property.12Oregon State Legislature. Oregon Code 319 – Motor Vehicle and Aircraft Fuel Taxes Pleasure boats do not qualify. Only commercial vessels are eligible.
The filing deadline is strict: refund claims must be submitted within 15 months of the purchase or invoice date.13Oregon Department of Transportation. Refunds
Where the Money Goes
Every dollar of state fuel tax revenue goes into the State Highway Fund, and the Oregon Constitution locks it there. Article IX, Section 3a requires that motor vehicle fuel tax revenue be used “exclusively for the construction, reconstruction, improvement, repair, maintenance, operation and use of public highways, roads, streets and roadside rest areas.”14Oregon Department of Transportation. Oregon Constitutional Dedication of Highway Funds The legislature cannot move the money to the general fund or unrelated programs.
Under ORS 366.739, after a $71.2 million per biennium deduction, counties receive 24.38 percent of collected fuel and vehicle taxes and cities receive 15.57 percent. The state keeps the remainder for statewide highway projects.15Oregon Public Law. Oregon Revised Statutes 366.739 – Allocation of Moneys to Counties and Cities Generally Local shares pay for street repairs, bridge maintenance, and routine road upkeep, and rural communities especially rely on the monthly distributions.