Image: Washington Policy Center
Washington drivers are paying more at the pump following the state’s first automatic fuel tax increase, which took effect July 1. The increase stems from legislation approved in 2025 that indexes the state gas tax to inflation, allowing it to rise by 2 percent annually without additional legislative action.
The automatic adjustment was established under HB 2711, which was signed into law in March 2025. Beginning this year, the state gas tax will increase each July 1 based on the formula outlined in the law. Previous fuel tax increases required approval by the Legislature. Under the new system, future increases occur automatically without additional votes.
The state gas tax was previously increased by 6 cents per gallon in 2025, bringing the rate to 55.4 cents per gallon before this year’s adjustment. Motorists also pay the federal gas tax of 18.4 cents per gallon, along with fuel cost impacts associated with the state’s Climate Commitment Act. Together, these factors contribute to Washington having some of the highest gasoline prices in the nation.
Supporters of indexing the gas tax have said the approach provides a more predictable source of revenue for transportation projects and helps address long-term maintenance needs for roads and bridges as construction costs rise over time.
Critics argue that automatic increases reduce legislative oversight by eliminating the need for future votes on fuel tax adjustments. They also contend the process limits opportunities for public input on transportation funding decisions and places additional financial pressure on households already facing higher living costs.
The policy reflects an ongoing debate over how Washington should fund transportation infrastructure while balancing affordability concerns. As the annual adjustments continue, discussions are expected to focus on transportation investment priorities, the condition of the state’s road system, and the long-term impact of higher fuel costs on residents and businesses.
