New Tax Rates Coming To Michigan Gas Stations In 2026
As of now, drivers in Michigan pay a 6% sales tax on most items and that does include when they are filling their car up with gas. Granted most people don't think about the sales tax that we pay and where it goes, but after some recent changes to the laws in the Mitten state they may want to pay a little more attention than they did before.
The taxes that we pay to the state are used by the government to keep the state operating at his highest capacity. There are several different types of taxes including income tax, sales tax, property taxes, and more. The government then takes the money and directs the funds into the proper accounts for state projects. As of right now, gas in Michigan is affordable, but that could be changing with a new tax rate being introduced.
State lawmakers have decided to make amends to the current gasoline tax situation because they felt it wasn't as helpful as they needed it to be. Previously, only a portion of the funds made from gasoline tax were used for road maintenance, under the new law, that will change.
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WZZM13 reports:
Starting Jan. 1, Michigan’s 6% sales tax on gasoline will be replaced by a 21-cent-per-gallon fuel tax, which lawmakers say will provide stable funding for road repairs. The state fuel tax rate will now be about 51 cents to the previous 31 cents, and the money form the 21-cent increase will go directly toward the roads. State Rep. William Bruck (R-Erie) said the previous system sent only a small portion of sales tax revenue to roads, with the rest going to schools and local communities.“ We were trying to figure out permanent, stable funding for roads,” Bruck said. “Now, that 21 cents per gallon goes 100% to the road fund.” Under the old system, just 1% of the 6% sales tax went toward roads.“ Most people assumed the tax they were paying on fuel was going to roads, but that was not the case,” Bruck said. “We fixed that problem.”
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Most people won't notice any real changes at the pump because these taxes are already factored into the price we see but the new tax is expected to generate at least $1 billion annually towards road maintenance.
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Gallery Credit: Billy Jenkins