A new state law will increase Mississippi’s gas tax starting July 1, 2025. This change, part of House Bill 1 passed during the 2025 Legislative Session, is designed to phase out the state’s income tax and will allocate funds to the Mississippi Department of Transportation (MDOT) for infrastructure improvements.

The gas tax will see a $0.03 per gallon increase spread over three years. MDOT Executive Director Brad White emphasized the significance of this adjustment, noting it’s the first time the fuel tax and roadway user fees have been modified in nearly 40 years.

For context, American drivers consume, on average, about 650 gallons of gasoline each year, according to data from the U.S. Energy Information Administration (EIA). Using those numbers, drivers could see their gas bills rise $19.50 with the new tax this year.

This increase is projected to provide MDOT with an additional $200 million to address road and bridge repairs. White clarified that these funds will be distributed not only to MDOT but also to the State Aid Road System, benefiting counties and cities across Mississippi.

The new gas tax revenue will supplement MDOT’s existing $1.5 billion appropriations bill and the first $80 million the state lottery generates annually through 2028. Jackson resident Lee Payton acknowledged the personal impact of the tax but conceded its potential benefit: “It would probably take effect on my lawnmower and my pocket. But if it’s going to help in situations to help the state and the city, then it’s probably needed.”

For context, American drivers consume, on average, about 650 gallons of gasoline each year, according to data from the U.S. Energy Information Administration (EIA).