ANNAPOLIS — Maryland’s gas tax will increase on July 1 under a long-standing automatic adjustment tied to inflation and fuel prices.
The Maryland Comptroller’s Office confirmed the rate for gasoline will rise from 46 cents per gallon to 46.6 cents per gallon. The diesel rate will increase from 46.75 cents to 47.45 cents per gallon. The change follows a formula established by state law that adjusts rates annually based on the Consumer Price Index. Officials have indicated the tax could rise again in July 2027 under the same mechanism.
House Minority Whip Jesse Pippy criticized the increase. “This latest increase reveals a fundamental flaw in Maryland’s gas tax equation – that in some of the most difficult economic times, this tax will increase because of the automatic formulas the Democratic majority pushed through a decade ago,” Pippy said. “Marylanders are struggling with high gas prices. While we cannot control federal policy in the Middle East, we can control Maryland’s tax policy here at home. It is unconscionable that Maryland’s Democratic majority has put a system in place that will increase the burden on Marylanders. While I am certain there will be those who downplay this increase, when taken in combination with more than 300 tax and fee increases over the last four years, including the largest tax increase in Maryland’s history, this is unaffordable and unsustainable for Maryland’s families and businesses.”
The automatic adjustment dates to 2013 legislation that raised the base gas tax and indexed future changes to inflation. Under the law, the Comptroller calculates the new rate each year using the growth in the Consumer Price Index for all urban consumers. Increases are capped at 8 percent annually and cannot decrease even if inflation slows or fuel prices fall. The tax revenue supports transportation projects, including road and bridge maintenance across the state.
In Southern Maryland, the increase adds to fuel costs for commuters traveling to the Washington, D.C., and Baltimore areas, as well as for agriculture, commercial fishing and tourism-related businesses in Calvert, Charles and St. Mary’s counties. Residents in more rural parts of the region often rely on personal vehicles for daily travel, making even small per-gallon changes noticeable over time when combined with other living expenses.
The Comptroller’s Office sets the rate by June 1 each year. The 2026 adjustment reflects recent inflation trends. Gas tax revenue in Maryland has historically funded a significant portion of the state’s transportation budget, though officials have noted fluctuations tied to fuel consumption and efficiency improvements in vehicles.
House Republicans have stated that if the General Assembly holds a special session this summer on redistricting, they will oppose partisan gerrymandering and advance legislation for a 30-day gas tax holiday along with a pause on future automatic increases. No such session has been scheduled as of early June.
Maryland’s gas tax remains one component of overall fuel costs that also include federal taxes, wholesale prices and retailer margins. Drivers can track current rates and related information through the Comptroller’s Office and the Maryland Department of Transportation.
