Tennessee's Gas Tax

Tracking Tennessee's 27.4 cent Gasoline Tax-Fiscal Year 2023

Tennessee's gasoline tax:

  • 27.4 cents per gallon (26-cent gasoline tax + 1.4-cent special petroleum fee)
  • The estimated gas tax revenue and special petroleum collection for FY 2023 is $939,080,000.
  • Each penny is worth about $34.27 million per year.

How the tax is divided (2022-2023 budget):

  • 10.2 cents, or $347.95 million, goes to cities and counties.
  • 0.8 cents, or $26.7 million, goes to the State General Fund.
  • 16.4 cents, or $564.5 million, goes to TDOT.

                          (all above figures are approximate due to rounding)

The $564.5 million is included in TDOT's total state revenue of $1,811,736,000 and is used in three basic ways to accomplish TDOT's mission:

  • Resurfacing, bridges, major reconstruction, new construction, consultant contracts, right-of-way purchases, and to match federal funds
  • Highway maintenance contracts
  • Basic operating costs

The amount TDOT has for use each year is smaller due to TDOT's operational and maintenance cost increases each year