The same day Michigan's new 51-cent excise tax takes effect, Jan. 1, motorists can expect that tax to jump by about 1.5 cents per gallon, bringing the total fuel tax to about 52.6 cents.

At the same time, the 6% sales tax will be removed from fuel sales.

LANSING — Michigan, where the roads are never ranked among the nation's best, on Jan. 1 will have the fourth-highest fuel excise tax in the nation — up from 18th — and rank second only to California among states where the fuel excise tax is indexed to inflation.

The shift in Michigan excise tax rankings is a result of the road funding deal baked into the 2026 state budget agreement reached between Gov. Gretchen Whitmer and state lawmakers. The plan, which includes a new 24% wholesale tax on marijuana , is expected to increase Michig

See Full Page