Tennessee's Gas Tax

Tracking Tennessee’s 21.4-cent Gasoline Tax - Fiscal Year 2016

Tennessee’s gasoline tax:

  • 21.4 cents per gallon (20-cent gasoline tax + 1.4-cent special petroleum fee) 
  • The gas tax revenue for FY 2016 was $657,787,157
  • Each penny is worth about $32.9 million per year

How the tax is divided (2016-17 budget):

  • 7.9 cents, or $249.5 million, goes to cities and counties
  •  0.7 cents, or $23.1 million, goes to the State General Fund
  • 12.8 cents, or $404.1 million, goes to TDOT

    ​(all above figures approximate due to rounding)

The $404.1 million is included in TDOT’s total state revenue of $844,556,000 and is used in three basic ways to accomplish TDOT’s mission:

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

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