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Michigan gas tax increases by 5%, 6th highest gas tax in the U.S.

Posted at 7:42 AM, Jan 02, 2023
and last updated 2023-01-02 13:41:54-05

(WXYZ) — Michigan drivers will be paying more at the pump in 2023 because the Michigan gas tax has gone up.

A law signed under former Michigan Governor Rick Snyder increased Michigan's gas tax from 27.2 cents a gallon to 28.6 cents. The rate increase is either 5% each year or the rate of inflation.

The extra money will go toward Michigan roads and infrastructure, but some drivers say the increase has caught them off guard.

"We have to do a better job at relaying where the money is going," State Representative Alex Garza said. "They see their taxes going up in one way or another and want to make sure it's going to roads and infrastructure."

For a car with a 15-gallon tank, the price increase at the pump will be around 21 cents.

Currently Michigan has the sixth-highest gas tax in the United States. Right now, the state charges drivers 18.4 cents for federal tax plus a 6% sales tax and a 1% environmental tax.

Adding all that up it comes close to 70 cents per gallon.

"If you look around Michigan we're spending a lot of money on roads right now. Orange barrels everywhere. It's going to take a lot of money to fix the roads, the big question in the future will be how do we fund roads with all these EV's not paying any gas tax," State Senator Joe Bellino said.

Lawmakers hope that this new tax increase will result in fewer potholes. They also plan on bringing some new ideas to the table for tax relief.