Washington state’s gas tax, already the third-highest in the nation, is going up again on July 1, 2026. The increase is the first automatic or inflation-based rise since the passage of ESHB 2711, signed into law by Governor Bob Ferguson in 2025. This law allows state officials to increase the gas tax by 2% every year without requiring a public vote or approval from elected officials.

Impact on Residents and Businesses

The gas tax increase comes at a time when gas prices are already high due to ongoing conflict in the Middle East and state policies that artificially increase the cost of gas, such as the state carbon tax. Some Washingtonians are feeling the pinch, with many paying more than they have to just to drive to work. Even school districts are affected, with some eastern Washington districts saving thousands by filling up their school buses with less costly gas in Idaho.

Sound Transit, for example, has tax sources that adjust with inflation and population growth. However, despite these adjustments, public officials argue that new tax revenues are needed due to inflation. The reality is that construction costs by state and local agencies often exceed inflation, requiring more and more tax increases to cover their rising spending.

Original reporting: Clark County Today (Vancouver WA) — read the source article.