No. Twenty cents per gallon is the state tax. Added to the 18.4 cents per gallon in federal tax, the total is 38.4 cents per gallon. The 20 cents of state tax goes into the state highway fund, but some of this money is diverted for other funding purposes, such as state public education and the Department of Public Safety.

Texas: A Donor State
Additionally, at the federal level, Texas is known as a “donor state.” This means part of the 18.4 cents Texans pay in federal gas tax goes to other states to fund their transportation projects.

Fixed Rate
The motor fuels tax is set at a fixed rate and does not fluctuate with fuel prices. Simply put, Texans pay a flat rate total of 38.4 cents per gallon, regardless of the price of gas.