State Motor Fuel Excise Tax Rates In addition to income, severance, production, property, and other taxes, the products produced by the petroleum industry are subject to various excise taxes. Every state imposes an excise tax on motor fuel. Often excise tax rates within a state differ depending on the type of motor fuel being purchased--for example, gasoline may be subject to one rate while diesel is subject to a different rate. Determining the amount of tax paid on one gallon of gasoline or diesel fuel purchased by a consumer at the pump can involve numerous factors and calculations. The tax...