gas travel tax

If You Use a Car for Your Business, These Expenses Are Tax-Deductible

Certain car expenses are deductible if the car is used for your business. Is gas tax deductible? We'll break down all of the rules.

Oct. 31 2022, Published 10:55 a.m. ET

With inflation and interest rates both on the rise, you'll want to keep as much of your paycheck as possible. Taking advantage of tax deductions helps Americans hold on to more of their income, but you might not be sure what car expenses are tax-deductible. Can you claim gas on your taxes for driving to work?

While you might be tempted to claim a tax deduction for the miles you drive to and from your place of employment, that isn't part of the U.S. tax code. Your everyday commute doesn’t count as a way to lower your taxable income. However, you can claim car expenses if you use the vehicle for your business. Keep reading for all the details.

Certain expenses are tax-deductible if the vehicle is used for your business — what about gas?

If you use your vehicle for work, you may be entitled to a tax deduction. The IRS vehicle tax deduction is either a standard mileage rate or the “actual expenses” of operating the car, but you can’t deduct both.

In order to claim a tax deduction for the use of your car, it must be used for business purposes such as trips required for work. You can claim full expenses if your car is only used for business. If your car is used half for business and half for personal purposes (or any other percentage combination), you'll have to do some math and figure out what to claim.

The standard mileage rate is what you may use to deduct eligible business travel related to your vehicle. In 2022, January through June used a rate of 58.5 cents per mile. That increased to 62.5 cents per mile for the second half of 2022.

As CNBC reported , IRS commissioner Chuck Rettig explained the increase: “The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices.”

High gas prices may influence whether a standard mileage deduction or actual expenses deduction is better for you.

The other option is the actual expenses method, which includes all costs related to the operation of a vehicle throughout the year. Those expenses can include the cost of gas , oil, lease payments, repairs, tires, insurance , registration fees, and licenses.

Neither method is automatically a larger deduction. It’s best to keep records of mileage and actual expenses so you can compare the potential tax deductions at the end of the year.

Is it worth claiming gas on taxes?

Whichever method you use to claim a deduction on your car, you need to keep detailed records. If claiming mileage, take a photo of your odometer on Jan. 1 and take note of the mileage so you can easily check the total annual miles. An app may also prove useful in mileage tracking.

Businesses & real estate investors… Gas is tax deductible! Be sure to track your miles & use a dedicated card for gas purchases. That’ll make it super simple at tax time! — Small Step Finance (@SmStepFinance) March 11, 2022

Keeping records for the actual expenses method can be a bit more time-consuming compared to only recording miles, but it could yield a greater tax deduction. For example, if you incur a large vehicle repair such as a new transmission, that might push your actual expenses well above the standard mileage deduction.

Remember to use the percentage of time that your vehicle is used for business. If you only use it 50 percent of the time for business, multiply your total expenses by 0.50.

Someone who is an Armed Forces reservist, a qualified performing artist, or a fee-basis state or local government official will use Form 2106 to calculate car expense deductions.

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Planning a road trip this weekend? California gas tax hike will make July 4 travel more expensive

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Californians who plan road trips for the Independence Day holiday can expect to pay more at the pump, as the state gas tax increases this weekend by 4 cents to pay for roads and to adjust for inflation.

The latest increase puts the state gas tax at around 58 cents per gallon.

A decade ago, Californians were paying about 40 cents per gallon for state taxes. The price has gradually gone up over the years.

In the Los Angeles-Long Beach area, the average gas price Friday was $4.89 per gallon for regular fuel, about 3 cents cheaper than it was a week ago, according to the American Automobile Assn. This time last year, the average gas price in the area was $6.33 per gallon.

Experts say that even with the tax increase, gas prices over the holiday weekends are expected to be cheaper than last year.

“Much of Covid’s revenge travel is behind us, and thus far this summer, demand for gasoline has been softer than last year, helping to ease the pressure on gas prices,” Patrick De Haan, head of petroleum analysis at GasBuddy , said in a news release. “Coupled with an economic slowdown and rising interest rates, Americans are feeling a bit more sluggish about hitting the road again this summer, leading to the lower prices.”

AAA predicts that more than 50 million people nationwide will celebrate the Fourth of July weekend by traveling, with about 43.2 million traveling by car.

The Automobile Club of Southern California predicts that travel for the weekend will almost reach the all-time high seen in 2019. More than 3.4 million Southern Californians are expected to travel, which is about 4.4% higher than last year and 1% less than 2019.

“Gas prices are $1.30 per gallon less this year than last, but they are still high compared to historical averages,” Andrew Gross , a AAA spokesperson, said in a news release about national gas prices. “The previous record average high price for gas on July Fourth was $4.10 in 2008, while the low was $1.39 in 2001. Yet despite currently elevated prices, drivers are not cutting back on travel this summer.”

Prices at the pump are expected to continue to decline through next week if gas demand remains low and increasing supply is able to stave off any jumps in price, according to AAA.

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Is Gas Deductible on Your Taxes?

Soo has over 10 years of experience at publicly traded companies and public accounting firms offering tax, accounting, payroll and advisory services to clients in diverse industries, including manufacturing, wholesale and retail, construction, real estate development, banking, finance, and professional and legal consulting. At Pricewaterhouse Cooper, she worked with many foreign-owned companies and advised clients on a broad range of issues, including federal and state tax minimization, determining the optimal structure for new foreign investments, and restructuring and reorganization for existing operations.

Are you a self-employed worker who sometimes uses your car for business purposes? If so, car expenses like auto insurance, maintenance — and yes, gas — can be a huge source of tax savings for you.

Gas is deductible from your taxes as long as you choose the actual expense method for writing off the business use of your car. Let's dive into how that works!

How to claim gasoline on your taxes

There are two ways to write off car-related expenses on your tax return: the actual expense method and the standard mileage method. You'll have to pick the former if you want to deduct what you're actually spending on gas.

Here's how these two methods compare.

Writing off gas expenses with the actual expense method

Using this method, you'll keep track of what you're actually spending on your car, including the cost of gasoline. Then, you'll multiply that sum by your business-use percentage — that is, the percentage of the time you're putting your vehicle to business use instead of personal use. 

That means that, if you have a car you only use for work, you can deduct the entire cost of operating it. Otherwise, though, you'll have to write off a portion of your expenses, corresponding to how much you drive your personal vehicle for business purposes.

For example, say you drove 10,000 miles in a year, with 5,000 of those being business miles. Then your business-use percentage for your car would be 50%.

What you can write off with the actual expense method

The actual expense method lets you write off your business-use percentage for everything you spend on your car, including your gas or diesel fuel. Here are some of the other costs that it covers:

• 🛡️ Insurance
• 🛢️ Oil changes
• 🔧 Repairs and maintenance
• 🚘 New tires
• 🏷️ Vehicle depreciation

This method does require you to track all of your vehicle expenses, which made it a less attractive option to self-employed taxpayers in the past. These days, though, apps like Keeper can do all the expense tracking for you by automatically scanning your credit card and bank transactions for car expenses.

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Keeper takes the tedium out of tracking your actual costs. And that's very good news, since most freelancers tend to save more using this method.

Incorporating gas expenses into the standard mileage rate

The other method you can use to write off the business use of your car is the standard mileage method. This gives you a tax deduction based on the number of miles you drive for work. (Keep in mind that commuting miles don't count! You can read more about the difference between them in our post on business vs. commuting miles .)

To calculate your deduction using the standard mileage rate, you'll first have to track your miles using a mileage log or app. Then, just multiply your business mileage by a standard mileage rate set by the IRS, which is updated annually. (For 2023, the rate is $0.655. For 2024, it increases to $0.67.)

What you can write off with the standard mileage method

With this method, you won't be able to claim gas — or other expenses like insurance and tires — as separate expenses at all. Those are already included in the IRS's standard rate.

However, some car-related costs do stack on top of the standard mileage rate, including parking fees, registration fees, and tolls. So you'll still need to track those expenses, using Keeper or a manual ledger. 

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Choosing between claiming gas and claiming miles

How do the two methods for writing off auto expenses like gas compare?

Let's run through a simple example so we can test them. We’ll reuse the scenario from above: 5,000 work miles and 10,000 total miles driven.

Example write-off with actual expenses

We'll try the actual expenses method first. Say you spent the following on your car: 

• $2,000 on fuel
• $3,000 on insurance
• $100 on an oil change
• $400 on repairs and maintenance
• $200 on new tires

Your total car expenses for the year come out to $5,700. Multiply that by your business-use percentage of 50%, and you get a write-off of $2,850 using the actual expenses method.

{write_off_block}

Example write-off with standard mileage

Now, let's try the standard mileage method. With 5,000 work miles, multiplied by $0.655 a mile, you end up with a write-off of $3,275.

Which method to choose

In general, self-employed people who drive a moderate amount tend to save more with actual expenses. But those who use their cars a lot for work — including rideshare and delivery drivers — tend to do better with the standard mileage method.

Of course, how much money you'll save with each method depends on how fuel-efficient your vehicle is, as well as what kind of work you do.

To see an in-depth comparison of the two methods, check out our detailed breakdown of actual expenses vs. the standard mileage deduction !

Switching between actual expenses and standard mileage

Keep in mind, there are some restrictions when it comes to switching between the two methods. 

To use the standard mileage rate for a car you own, you have to choose to use it in the first year you use the car for work. Then, in later years, you can choose to use the standard mileage rate or switch to actual expenses.

For a car you lease , you must use the standard mileage rate method for the entire lease period (including renewals) if you choose the standard mileage rate. 

Where to claim car expenses like gas

As you know now, freelancers, independent contractors, and small business owners who sometimes drive for work, can claim gas on their taxes if they choose to write off actual vehicle expenses.

If you’re a sole proprietor (or run a single-member LLC ), then claiming car expenses like gas is very straightforward. You'll just enter them in Line 9 of your Schedule C , following the instructions given by the IRS .

Reimbursing employees for gas and other car expenses

Now, what if you run a business with employees who also drive for work?

Say you have employees who drive company cars, or use their personal cars for work. Then you'll need to reimburse them for what they're spending on their auto expenses. 

Prior to the 2018 tax year, employees were allowed to deduct unreimbursed expenses that exceed 2% of their adjusted gross income if they itemized their deductions. After 2018, though, employees can't write off unreimbursed gas anymore — you'll have to pay them back for it.

Soo Lee, CPA

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At Keeper, we’re on a mission to help people overcome the complexity of taxes. We’ve provided this information for educational purposes, and it does not constitute tax, legal, or accounting advice. If you would like a tax expert to clarify it for you, feel free to sign up for Keeper. You may also email [email protected] with your questions.

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Driving Down Taxes: Auto-Related Tax Deductions

Your car might save you a bundle come tax day, especially if you drive as part of your work. Knowing all of the auto-related deductions can ensure that your automobile is working as hard for you as you are for your paycheck.

Deducting auto expenses

More miles, more money, keeping good records, cruise control.

Key Takeaways

• If you have a full-time job but use your vehicle for work duties (driving to meetings, picking up supplies, etc.), your reimbursements from your employer are likely to be tax-free for those driving costs.
• If you’re self-employed, you typically can deduct expenses for the miles you drive or for the actual automobile costs for business purposes.
• You can calculate your driving deduction by adding up your actual expenses or by multiplying the miles you drive by the IRS’s standard mileage rate.
• The per-mile rate for 2023 is 65.5 cents per mile. The rate increases to 67 cents per mile for 2024.

You can make car expenses work for you. For many Americans, work and personal time have become increasingly intertwined over the years. While this certainly has its drawbacks, it can be a major benefit come tax time for those who drive as part of their work. Knowing all of the auto-related deductions you’re entitled to can ensure that your automobile is working as hard for you as you are for your business.

The first thing an auto-using taxpayer needs to do is determine how they are using their car, said Julian Block, a Larchmont, New York–based tax attorney who is the author of "Tax Deductible Travel and Moving Expenses: How to Take Advantage of Every Tax Break the Law Allows." One type of use includes personal use of your vehicle and the other includes business use. People often do a little of both with the same vehicle. "If you use your car exclusively in your business, you can typically deduct all of the car expenses," said IRS representative Sara Eguren. If you use your car for both business and personal purposes, you'll need to divide your expenses based on your mileage for business and your mileage for personal use."

First up: If you are self-employed, but occasionally use your personal auto for your business, you're likely qualified for a business expense deduction.

“If you use your car for anything business related, other than simply commuting from home to work, there might be deductions you can take," said Andrew Schrage, co-owner of the Chicago-based personal-finance site MoneyCrashers.com. "Don’t miss out."

Mileage is a big deduction, Schrage noted, adding, "Although it may not seem like much, it adds up."

If you drive from your office to a job-related destination—a sales meeting, to get office supplies, or to the airport—those miles are typically deductible.

For 2023, the mileage rate is 65.5 cents per mile. This amount increases to 67 cents per mile for 2024. For more information, refer to IRS Publication 463, Travel, Gift, and Car Expenses . For a list of current-year and prior-year mileage rates see " Standard Mileage Rates ." There's a separate table for those who lease their vehicles. If you are self-employed, you may either deduct your actual expenses or use the optional standard mileage rate to calculate deductions provided you used the standard mileage rate in first year that you used the auto for business. Otherwise, you will need to use the actual expense method.

“If you’re using your vehicle, say, 75 percent of your time of use for business, that same percentage of all of your qualified auto expenses are deductible," says Block.

"If it’s a car used exclusively for business, it’s 100 percent. If you’re claiming actual expenses, things like gas, oil, repairs, insurance, registration fees, lease payments, depreciation, bridge and tunnel tolls, and parking can all be deducted." Just make sure to keep a detailed log and all receipts, he advises, and keep track of your yearly mileage and then deduct the percentage used exclusively for work. One smart tip, says Block: “If you have a gas guzzler, you’re likely better off taking the actual deductions.”

TurboTax Tip: If you’re self-employed and claim a home office, all the driving you do from your home to clients’ offices is typically deductible. If you don’t have an office in the home, the first and last trips of the day are typically considered non-deductible commuting.

Illinois CPA Neil Johnson recommends you keep meticulous records throughout the year to ensure you are prepared when tax time arrives. The more information the better, says Johnson, who has adopted the nickname given him by one of his clients and is now known as "the Tax Dude." "When deducting your auto expenses, the most important thing is keeping detailed records of your all of your miles," he said. "Include what clients you were seeing, the purpose of the trip, the job being worked on. You could enter it into a simple Excel spreadsheet each day or use an app on your phone and soon it’ll become second nature.”

If you are self-employed and claim a dedicated home office—a space set aside exclusively for business—the driving you do from your home to clients’ offices is typically deductible.

"If you don’t have a home office," said Block, "your first and last trips of the day are typically considered non-deductible commuting." In other words, if you are a freelancer who regularly drives to different clients' offices in a day, the first trip out from home and the last drive back are typically considered commuting and are not usually deductible. However, the distance driven between each client can be deducted.

From Julian Block, author of "Tax Deductible Travel and Moving Expenses: How to Take Advantage of Every Tax Break the Law Allows," and Andrew Schrage, co-owner of MoneyCrashers.com, come a few cool, little-known auto-related expenses you may deduct—and one that you may not deduct.

• If you own rental property, you may claim the mileage driven to and from your property when you go to maintain or check on it, says Julian Block.
• Transportation expenses—including parking and tolls—for volunteer work at qualifying charities (including nonprofit board meetings) are considered charitable donations and may be included as an itemized deduction on your income taxes, according to Andrew Schrage. The rate per mile, however, is lower: 14 cents per mile.
• If you’re using your car for business, even car-washing and polishing expenses are deductible when claiming actual expenses rather than the standard mileage rate, Block says.
• Block says that if you incur medical expenses of over 7.5 percent of your adjusted gross income (AGI) you may deduct health-related travel expenses. This includes travel to the medical provider and parking as well.
• Fines for traffic tickets are never deductible, even if you receive them doing work-related driving, says Block.

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How Have State Gas Taxes Evolved?

How much are state gas taxes, what do gas taxes cover.

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Gas Taxes and What You Need to Know

They are increasingly failing to cover infrastructure costs

Gas taxes are excise taxes that you pay when you fill up your car with gas. The federal government and all 50 U.S. states impose gas taxes, with much of the revenue raised going toward fixing highways and other infrastructure projects.

State gas taxes range from just under 9 cents per gallon in Alaska to nearly 78 cents per gallon in California, though some states charge based on the amount spent rather than the volume of fuel purchased.

Key Takeaways

• Federal and state governments levy gas taxes to help pay for road infrastructure projects.
• The average state gas tax is about 32.26 cents a gallon, though they range from less than 9 cents to almost 78 cents a gallon.
• Gas taxes have not kept pace with road maintenance costs, leading some states to legislate increases tied to inflation and many to adopt variable rates.

History of Gas Taxes

U.S. states have levied gas taxes since the early days of automobile travel. In 1919, a little over a decade after Henry Ford’s Model T made owning a car affordable for the masses, Oregon became the first state to adopt a gas tax—at 1 cent per gallon.

Within 10 years, every state was collecting gas taxes. The federal government followed suit in 1932, establishing a nationwide gas tax of 1 cent per gallon in an attempt to shrink a budget deficit rising as a result of the Great Depression.

The basic concept behind the tax is the benefits received rule : The notion that people should be taxed based on how much they benefit from government spending. Thus, drivers pay a gas tax to help cover the cost of building and maintaining roads, bridges, and tunnels—and to address the problems of traffic congestion and pollution.

Current Problems

Unfortunately, the revenue raised from gas taxes has failed to keep up with rising infrastructure costs and inflation. The development of electric vehicles and increased fuel efficiency of all autos have reduced gas demand relative to vehicle miles traveled, further widening the gap between the gas tax funds raised and road maintenance costs.

While the federal gas tax has been stuck at 18.4 cents a gallon since 1993, the increasing squeeze on transportation budgets has led many states to raise the gas tax in recent years. Thirty-three states have done so since 2013.

More states are also changing how their motor fuel excise taxes work to try to keep up with rising gas prices and inflation. Nearly half of the states now have variable-rate gas taxes, using formulas linked to everything from the price of gas and the Consumer Price Index (CPI) to fuel efficiency and population growth. For example, Indiana links its gas tax rate to the rates of inflation and personal income growth.

Most states assess a variety of taxes and fees on top of the gas tax, including environmental, underground storage, and inspection fees. Other types of fuel are taxed as well, including diesel, ethanol, aviation fuel, and alternatives including natural gas.

When you add up all the taxes and fees, the average state gas tax stood at 32.26 cents per gallon on July 1, 2023, according to the U.S. Energy Information Administration . Throw in the 18.4 cents federal tax, and the total gas tax rises to 50 cents per gallon.

Gas taxes thus accounted, on average, for about 15% of the average retail gasoline price of $3.50 per gallon of regular unleaded as of November 2023.

Here’s a rundown of the gas taxes in each state, including other taxes and fees, as of July 2023:

Source: U.S. Energy Information Administration

The bulk of revenue from gas taxes goes toward fixing wear and tear on the country’s roadways from all that driving. In fact, about half of the states have laws requiring that money raised by fuel taxes pay for roads and bridges. Most of the other states dedicate the revenue toward various modes of transportation, with New York spending more than a third of its gas tax proceeds on mass transit.

Some states use the money for transportation-related purposes, such as law enforcement, environmental protection, and education. For example, Texas dedicates a quarter of its gas tax revenue to schools.

At the federal level, nearly all funding goes into the Highway Trust Fund. One-tenth of a cent in federal taxes from each fuel gallon goes toward cleaning up leaks from underground petroleum storage tanks. Out of the 18.3 cents per gallon federal tax, 15.44 cents goes to the highway account. The mass transit account receives 2.86 cents. This is the latest information, which is from 2021. Note that the federal tax is 18.4 cents per gallon.

However, gas taxes raised at the state and federal levels are increasingly falling short of what’s needed to maintain and expand the country’s roads. In 2023, the Congressional Budget Office estimated a cumulative shortfall of $241 billion for the Federal Highway Fund's highway and mass transit spending through 2033.

How Much Is Gas Taxed in America?

As of July 2023, the average state gas tax in the U.S. was 32.26 cents, while the federal gas tax rate was 18.4 cents. Taken together, this amounts to 50.66 cents per gallon.

What U.S. State Has the Highest Gas Tax?

As of July 2023, California had the highest gas tax in the nation at 68.1 cents per gallon. Following closely behind is Illinois, with a rate of 66.5 cents per gallon.

What U.S. State Has the Lowest Gas Tax?

At 8.95 cents per gallon, Alaska has the lowest state gas tax by a wide margin. The oil-producing state's gas tax has moved very little since 1970, when it was 8 cents per gallon.

Where Does Gas Tax Revenue Go?

The bulk of revenue from gas taxes pays for infrastructure projects such as building, repairing, and modernizing roads and public transit.

Which States Tie Gas Taxes to the CPI?

A handful of states index the state gas tax to changes in the Consumer Price Index (CPI). Some of these include Florida, Maryland, North Carolina, and Rhode Island.

The Bottom Line 

Given the increasing shortfalls, federal and state officials will need to consider how to keep paying for paving the country’s roadways and fixing its potholes. At the federal level alone, the cumulative funding shortfall in the Highway Trust Fund is expected to reach $241 billion by 2033.

While hiking the gas tax and allowing it to rise with inflation have become popular solutions to the funding shortfall, some states have also started charging electric vehicle owners an annual fee. The funding issue will likely only grow in urgency as the country’s infrastructure, already barely getting a passing grade, continues to age, with the American Society of Civil Engineers’ Report Card scoring its state a C-.

The good news is that the federal government budgeted $1.2 trillion toward infrastructure spending, including $110 billion for road and bridge repair and $39 billion to modernize transit, under the Infrastructure Investment and Jobs Act passed in 2021.

Tax Foundation. " Gas Tax ."

Tax Foundation. " How High Are Gas Taxes in Your State? "

Oregon Department of Transportation. " About Us: Fuels Tax History ."

U.S. Department of Transportation, Federal Highway Administration. “ When Did the Federal Government Begin Collecting the Gas Tax? ”

Richard A. Musgrave and Peggy B. Musgrave. " Public Finance in Theory and Practice ," Page 219. McGraw-Hill Book Company, 1989.

Davis, Lucas W. and Sallee, James M. " Should Electric Vehicle Drivers Pay a Mileage Tax? " Environmental and Energy Policy and the Economy, vol. 1, February 2020.

S&P Global. " EV Impact: Electric Vehicle Growth to Sever Oil From Key Market ."

National Conference of State Legislators. " Variable Rate Gas Taxes ."

National Conference of State Legislatures. " Recent Legislative Actions Likely to Change Gas Taxes ."

Indiana Department of Revenue. " Rates for the Gasoline License Tax and Special Fuel License Tax ."

U.S. Energy Information Administration. “ Factors Affecting Gasoline Prices ." Download Excel "Federal and State Motor Fuel Taxes.”

U.S. Energy Information Administration. " Frequently Asked Questions: How Much Tax Do We Pay on a Gallon of Gasoline and on a Gallon of Diesel Fuel? "

Federal Reserve Bank of St. Louis, FRED. " Average Price: Gasoline, Unleaded Regular (Cost per Gallon/3.785 Liters) in U.S. City Average ."

New York State Department of Taxation and Finance. “ Collection of Petroleum Business Tax and Motor Fuel Excise Tax .“ Pages 5–6.

Texas Department of Transportation. " 2023-2024 Educational Series Funding ." Page 4.

Congressional Research Service. “ Federal-Aid Highway Program (FAHP): In Brief .” Page 2.

Congressional Budget Office. " The Status of the Highway Trust Fund: 2023 Update ." Page 1.

Institute on Taxation and Economic Policy. " Alaska’s Motor Fuel Tax: A National and Historical Outlier ."

National Conference of State Legislatures. " Special Fees on Plug-In Hybrid and Electric Vehicles ."

American Society of Civil Engineers. “ America’s Infrastructure Scores a C− .”

The White House: Biden Administration. " Fact Sheet: The Bipartisan Infrastructure Deal ."

The White House: Biden Administration. " FACT SHEET: President Biden Announces Support for the Bipartisan Infrastructure Framework ."

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If you are required to use your personal vehicle for work, can you claim gas on taxes, or do you just use the standard mileage deduction?

The gas tax deduction was an allowable business expense for tax years before 2018. Employee business expenses are no longer deductible on an individual tax return. Commuting, driving from home to work and back, has never been deductible.

Who Can Still Deduct Car Expenses on Tax Returns?

There are limited groups who can deduct certain car expenses:

• Armed Forces reservists
• Qualifying performing articles
• Fee-basis state or local government officials

In order to have claimed the deduction, you must keep adequate records that showed the following:

• Cost of expense
• Date you used car
• Business destination
• Business purpose for expense

Receipts were the most accurate way to prove a valid expense when you claimed gas expenses on your taxes. If you don’t have complete records to prove an expense, you must prove it with:

• Your own written or oral statement containing specific information
• Other supporting evidence, like written statements or oral testimony from a third party

More Info on the Standard Mileage Deduction

Instead of actual expenses, you were also allowed to take the standard mileage deduction for business-related miles. Keep the following records for each trip:

• Destination
• Business purpose
• Starting and ending odometer readings
• Total mileage for each business trip

If you chose to use the standard mileage deduction, you could also have deducted business-related parking fees and tolls.

Mileage Reimbursement Rate

Beginning January 1, 2019, the standard mileage reimbursement rates for the use of a car is 58 cents per mile for business miles driven, up from 54.5 cents. This means that an employer can reimburse an employee up to 58 cents per mile for company related mileage.

The mileage rate for other purposes is:

• 20 cents per mile driven for medical mileage, up from 18 cents
• 14 cents per mile driven in service of charitable organizations

More Help on the Gas Tax Deduction

Whether you  make an appointment  with one of our knowledgeable tax pros or choose one of our  online tax filing  products, you can count on H&R Block to help you with the gas tax deduction and other matters unique to your own life situation.

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Gas Tax Rates by State, 2023

A hot summer travel season makes fuel taxes salient to many Americans. Today’s map shows state gas tax A gas tax is commonly used to describe the variety of taxes levied on gasoline at both the federal and state levels, to provide funds for highway repair and maintenance, as well as for other government infrastructure projects. These taxes are levied in a few ways, including per-gallon excise taxes , excise taxes imposed on wholesalers, and general sales taxes that apply to the purchase of gasoline. rates as of July 2023.

States tax A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. fuel in several ways, including sales taxes, per-gallon excise taxes collected at the pump, taxes imposed on wholesalers (which are passed along to consumers in the form of higher prices), and a variety of operational taxes, such as underground storage tank fees, that are often charged to the retailer.

We add up all these different taxes and fees (not including carbon fees) to calculate a total tax rate on gas for each state. The map below shows that U.S. state tax rates vary widely.

California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (62.2 cpg). The lowest state gas tax rates can be found in Alaska at 9.0 cents per gallon, followed by Missouri (17.5 cpg) and Mississippi (18.4 cpg).

While few taxpayers cheer fuel taxes, these systems work well as “user fees.” This public finance concept is a fee imposed by the government with the primary purpose of covering the cost of provided services. In general, drivers benefit from the services that their gas tax dollars pay for, like road construction, maintenance, and repair. Because gas taxes connect drivers to the costs of road upkeep, they encourage efficient road use, which helps limit congestion and the wear and tear that comes from overuse.

However, many states have not indexed their rates for inflation Inflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. It is sometimes referred to as a “ hidden tax ,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spending power. , leading the real value of gas tax revenue to fall behind infrastructure spending needs across the country. Gas taxes also face a narrowing base, as vehicle fuel economy has increased and electric vehicles make up an increasing percentage of vehicles on the road. One long-term solution would be to tax vehicle miles traveled ( VMT ) to ensure that those driving on the roads are paying for the roads. VMT pilot programs are ongoing in all 50 states.

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Gas tax rates by state, 2021, gas tax rates by state, 2020, gas tax rates by state, 2019, gas tax rates by state, 2018, gas tax rates by state, 2017, gas tax rates by state, 2016, gas tax rates by state, 2015.

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California Drivers Face Nation’s Steepest Fuel Tax Mountain

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Infrastructure Bill Includes Per-Mile Road Tax Test That Will Track Drivers’ Travel

By Rob Stumpf

Posted on Aug 6, 2021 1:02 PM EDT

4 minute read

Automakers are being pressured by federal and state governments to ramp up electric car production , and U.S. President Joe Biden is signing an executive order that targets half of all new car sales to be electric by 2030 . The industry is shifting towards battery power and the timeline is rather aggressive.

One puzzle that comes with moving towards an electrified future is funding the roads. Today, Americans pay at the pump—every gallon of gasoline and diesel is taxed. The federal government receives 18.4 cents and most states collect a chunk as well. As fewer cars visit the pump, the amount of tax revenue decreases and needs to be made up elsewhere, something that’s addressed in the upcoming infrastructure bill with a pilot program for a national per-mile tax.

Nestled inside the 2,702-page text is Section 13002, titled “National motor vehicle per-mile user fee pilot.” That pretty much covers the meat and potatoes of this section’s purpose: piloting a program that would tax drivers based on their annual mileage rather than at the pump.

The idea behind this tax isn’t without merit. The federal fuel tax has remained stagnant at 18.4 cents per gallon since 1993, and it hasn’t been adjusted to account for more fuel-efficient vehicles, nor for inflation, which would place the tax at around 34 cents per gallon today. As alternatively powered vehicles like electric cars make up more of what’s on the road today, drivers of fossil-fueled cars will pay an unproportionate amount of taxes to use the same asphalt.

In 2020, around 1.8 million EVs were roaming United States roads—about half of a percent of all registered passenger vehicles. Accounting for average fuel economy and miles driven, this totals roughly $97 in missed federal fuel taxes per vehicle each year, meaning the federal government is losing out on $174.6 million of revenue annually.

Federal fuel taxes are paid into the Highway Trust Fund, which the government projects will be insolvent long-term with the rise of alternatively fueled vehicles. As the concentration of EVs on the road increases, fuel tax revenue will continue to decrease. Biden’s goal of electric cars making up 50 percent of auto sales by 2030 would mean that the U.S. could see a $4.5 billion federal fuel tax deficit per year, meaning that it will eventually look to make this revenue up through other means. That could happen by increasing the fuel tax for remaining gasoline buyers, implementing a per-mileage tax, or perhaps even implementing an EV-specific tax for public utilities. The infrastructure bill is seeking to determine the feasibility of a per-mileage tax.

As part of the pilot program, volunteers from all 50 states—plus Washington D.C. and Puerto Rico—who drive both passenger and commercial vehicles will opt-in. Data on the vehicle’s travels will be recorded and used to bill the participants according to their mileage, a rate that may vary depending on the vehicle type and weight. For example, commercial trucks may pay more due to the increased wear and tear put on public infrastructure.

The bill specifically notes that this mileage information can be tracked via third-party OBD-II devices, OEM-collected telematic data, information from insurance companies, a smartphone app, or “any other method that [Secretary of Transportation Pete Buttigieg] considers appropriate.” It doesn’t address provisions for the privacy of this data, nor how it will keep the information safe from bad actors, or even prohibit the sale of the data to non-government entities.

A per-mile fuel tax is a controversial topic that many drivers have mixed feelings on, and they’ll likely continue to have shifting opinions as electric vehicles become more prominent on the roads they share. Certain states have already considered addressing this, opting to investigate if a per-mile tax would make more sense than paying at the pump. Pennsylvania, which has the highest fuel tax in the nation at 58.7 cents per gallon, recently began discussions on whether or not an 8.1-cent-per-mile tax was appropriate—this would translate into more than $2 per gallon of gasoline based on the average fuel economy of a brand new car .

Meanwhile, if adopted, this federal tax would cross President Biden’s “red line” for tax hikes against citizens making less than $400,000. The administration has repeatedly rejected calls for a hike on the federal fuel tax, most recently in June.

Should the text make it through the final vetting of the infrastructure bill, the Secretary of Transportation will have one year to pilot the program before having to report the results to Congress to determine if it’s feasible.

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Biden is calling for a 'gas tax holiday.' What do gas taxes pay for?

Taxes on gasoline have been around for decades, but the federal gas tax hasn't been adjusted for inflation since 1993..

• The federal gas tax is 18.4 cents per gallon, and for diesel fuel, 24.4 cents per gallon.
• Revenue from the gas tax goes to the Highway Trust Fund, to pay for construction and interstate projects.
• States also have gas taxes, and the amount varies widely.

WASHINGTON - In response to the high gas prices pummeling drivers, President Joe Biden on Wednesday will call on Congress to temporarily halt the federal tax on gas and asked states, which have their own gas taxes, to take similar action.

The primary measure Biden requested is a federal gas tax suspension through September.

"President Biden understands that high gas prices pose a significant challenge for working families," the White House said in a statement . "Today, he is calling on Congress and states to take additional legislative action to provide direct relief to American consumers who have been hit with Putin’s Price Hike."

Here's what you need to know about the proposal and how it could affect you. 

Biden's proposal: Biden to propose three-month federal gas tax holiday to ease soaring prices at the pump

What are gas taxes?

Taxes are levied on gasoline, diesel and gasohol, which is a mix of ethanol and unleaded gas, at the federal and state levels.

The federal gas tax is 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel. On top of that, states have their own gas taxes. State gas taxes  vary, but cost an average of  26.2 cents per gallon on gasoline and 26.7 cents per gallon on diesel. The highest state gas taxes are in California (68.2 cents) and Pennsylvania (58.7 cents), and the lowest is in Alaska (15.1 cents), according to the American Petroleum Institute.

The cost of crude oil aside, the taxes are the main factor in determining gas price at the pump, adding more to the price of a gallon of gas than refining costs, retail markup and transportation expenses, USA TODAY previously reported .

Gas prices color midterms: Biden considers addressing record high gas prices as midterm elections loom

What does the federal gas tax pay for?

Most of the money collected from the federal gas tax goes toward highway infrastructure, via the Highway Trust Fund , which pays for most federal spending on highways and mass transit.

The Highway Trust Fund was established in 1956 to create a dependable source for federal funding of construction and interstate highway projects, according to the Peter G. Peterson Foundation . There are two parts of the fund: the Highway Account, which is mostly devoted to highways and bridges, and the Mass Transit Account, which pays for the purchasing and upkeep of buses, railways and other forms of public transportation.

The Highway Trust Fund was projected to be insolvent, or unable to pay the debts it owes, by 2022. But in November, a bipartisan infrastructure bill signed into law. The bill included an $118 billion revenue transfer to the fund, extending its near-term solvency through 2027, according to the Committee for a Responsible Federal Budget .

Federal gas and diesel taxes in 2020 accounted for 84% of revenue for the Highway Trust Fund, for a total of some $43 billion, according to the Congressional Budget Office . This year, the Committee for a Responsible Federal Budget similarly projects more than $42 billion in revenue will flow into the Highway Trust Fund, more than 60% of which will come from the federal gas tax. 

The federal gas tax hasn't been updated to keep pace with inflation since 1993; if it had, the current gas tax would be about 33 cents per gallon and 44 cents per gallon on diesel fuel, according to the Tax Policy Center . 

State gas taxes mostly pay for things like road construction and maintenance, according to the Urban Institute . But some states divert those funds to seemingly unrelated expenses, like environmental programs, law enforcement or tourism, the Reason Institute found . 

Who's to blame?  Gas prices surge again to record high but the driver is refineries, not oil prices

What is a 'gas tax holiday'?

Biden's proposal of a three-month federal gas tax holiday , which requires congressional approval, would act as "a little extra breathing room" for Americans dealing with record high gas prices, the White House said in its statement.

The national average for a gallon of gas was $4.955 on Wednesday, according to AAA.

The White House wants Congress to offset the would-be $10 million loss of highway funds caused by the gas tax holiday with other federal tax revenue, arguing that with the federal government's deficit down $1.6 trillion this year, the U.S. can afford it. 

Some states have independently taken steps to suspend their gas taxes, including Connecticut, Georgia, Florida, Maryland and New York . Other states have made efforts to lessen the impact of gas taxes by holding off on planned tax hikes or examining other consumer fees. 

Biden to oil companies: With gas prices at $5 a gallon, Biden tells oil companies to cut costs for Americans

Who's against a gas tax holiday?

However, there are plenty of critics of the measure, including in Biden's own party.

Larry Summers, former Treasury secretary in the Clinton administration and an economic adviser for President Barack Obama, this week called it "a gimmick" that doesn't solve the underlying issues causing the price spike.

Record high gas prices: With gas prices at $5 a gallon, Biden tells oil companies to cut costs for Americans

Some economists say the end of the holiday could increase inflation and deplete transportation funds, for a low pay-off, while environmentalists argue the gas tax undermines the effort to move toward clean energy. 

Plus, Biden's proposal has to pass Congress with at least 60 votes to avoid a Republican filibuster. 

Biden will make his case for a gas tax holiday during a 2 p.m. ET speech Wednesday. 

Contributing: Joey Garrison

Think gasoline is too expensive in California? Newsom has a plan to cut pain at the pump

The plan would force oil refineries to maintain minimum inventories to avoid price spikes at california gas pumps..

California Gov. Gavin Newson released a proposal Friday that would force oil refineries to maintain minimum inventory levels. The goal is to stabilize supply and avoid sudden price spikes at California pumps.

The plan, touted as a "first-in-the-nation proposal," would authorize the California Energy Commission to require minimum fuel reserves at oil refineries "to avoid supply shortages that create higher prices for consumer," according to statement issued by the governor's office.

"Price spikes at the pump are profit spikes for Big Oil," Newsom said. "Refiners should be required to plan ahead and backfill supplies to keep prices stable instead of playing games to earn even more profits. By making refiners act responsibly and maintain a gas reserve, Californians would save money at the pump every year."

Had the proposal been in effect in 2023, California drivers would have saved more than $650 million in gas costs, representatives said.

A study by the CEC determined that there were 63 days during 2023 during which California refiners were maintaining less than 15 days of supply, resulting in increased prices, according to the statement.

Officials pointed out similar mandates have been enacted in the European Union, Japan, and Australia.

Maintenance planning requirement

Newsom's plan would also allow the CEC to mandate that refiners demonstrate they have adequate plans to address production loss when conducting maintenance on refinery facilities.

CEC Division of Petroleum Market Oversight Tai Milder said such a policy is needed to prevent oil refiners from using maintenance to increase profits.

"The data is clear: oil refiners have been racking up profits by planning maintenance that reduces supply during our busy driving seasons," he said. "The Governor’s proposal gives us new tools to require refiners to plan responsibly and prevent price gouging during maintenance.”

Previous efforts to 'rein in the industry'

Friday's announcement is the latest in a series of efforts by Newsom to "rein in the industry," according to his office .

A law signed into law last year by Newsom created a watchdog group within the CEC to look out for and penalize companies in the event of price gouging.

In 2022, he proposed levying a  "windfall tax"  on oil companies that made what his office called "excess oil profits."

Highest gas tax in the nation

Meanwhile, California's gas tax increased by 2 cents in July to 60 cents per gallon.

The state gasoline tax is the highest in the nation.

It does not include an additional federal excise tax of 18 cents per gallon.

These practical finds will make any routine easier, starting at $10

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What a gas tax holiday could mean for your wallet

Gas prices have skyrocketed in recent months — prompting Americans to question what the federal government is doing to ease the pain at the pump.

On Wednesday, President Biden called on Congress to suspend federal gas and diesel taxes through September. He also called on states to suspend their own fuel taxes. Although the proposal is being met with opposition and has yet to pass, the holiday has important ramifications. Here’s what you need to know about the potential gas tax holiday.

What is a gas tax holiday?

Simply put, a gas tax holiday is a suspension on gas taxes. Some states, including Maryland and Connecticut, have already passed gas tax holidays, but Biden’s proposal is aimed at the federal level.

The goal of the holiday is to relieve the financial pressure on Americans created by high gas prices. The current federal gas tax is around 18 cents per gallon, and the current federal diesel tax is around 24 cents per gallon. These taxes have been in place for almost three decades. Revenue from the gas tax goes toward the Highway Trust Fund.

“By suspending the 18-cent gas tax, federal gas tax, for the next 90 days, we can bring down the price of gas and give families just a little bit of relief,” Biden said in his speech.

Why are gas prices so high?

With the combination of price of oil, refining, distribution and taxes , gas prices have largely been out of local gas stations' control. Each step of refining crude oil, which usually accounts for 60% of the price of a gallon of gas, comes with other costs including distributing gas to local stations. The Russian invasion of Ukraine has also contributed to the hike in prices.

High gas prices have had detrimental effects on businesses like restaurants that rely on deliveries — drivers have been struggling to break even or make profit, causing lost jobs. And one oil price expert said the prices are expected to continue to rise this summer.

How would Biden's gas tax holiday plan work?

At the most basic level, Biden’s proposal is targeted at lowering high gas prices. According to senior administration officials, the holiday could reduce gas prices by $1.

Biden’s proposal has also been called a political move by many. The holiday would end right before midterm elections, and inflation is a central issue for Democrats.

Why do some oppose a gas tax holiday?

Many have criticized the concept of a gas tax holiday because they think it's largely ineffective.

Garret Golding, a business economist at the Federal Reserve Bank of Dallas, told The New York Times he doesn't think the holiday would make a difference in the grand scheme of things.

"I don't think it moves the needle on people's willingness to buy more, and it doesn't exactly save them a whole lot of money, either," he said. "It sounds like something is being done to lower gas prices, but there's not a whole lot of there there."

Senate Minority Leader Mitch McConnell, R-Ky. has already shot down the concept, calling it a "silly proposal," making the bill unlikely to pass in the Senate.

Some Democrats have even expressed doubts. House Majority Leader Steny Hoyer, D-Md., said he supports the goals of reducing gas prices but questions the “intended effect in terms of the retail price and whether in fact it will save consumers money.”

Jason Furman, a professor at Harvard University’s John F. Kennedy School of Government and a former Obama economic adviser, fears the savings will ultimately be passed to the oil industry, not the consumer.

Other groups like the American Society of Civil Engineers have expressed opposition to the proposal fearing the effects of decreasing already-limited funding for highway projects.

What are some ways I can save money on gas right now?

If you drive, it's hard to avoid the sticker shock at the pump, but there are some ways that you can save money .

Buying gas on certain days has been shown to be cheaper, according to the GasBuddy app. The best tip is to do your research to ensure you’re buying gas from the cheapest gas station near you — every cent counts.

Laya Neelakandan is a reporter for CNBC.

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Average state tax rates for retail gasoline and diesel fuel flat since January 2024

This TIE was updated August 20, 2024 to correct a figure.

As of July 1, 2024, state taxes and fees on gasoline and diesel fuel averaged $0.33 per gallon (gal) of gasoline and $0.35/gal of diesel fuel, according to our federal and state motor fuel taxes table. Since January 2024, both the gasoline and diesel average taxes have remained nearly flat, increasing less than half of one cent each.

Although the national average tax rates were nearly flat, several states saw changes. Gasoline taxes decreased in three states, with Kentucky having the largest decrease, falling $0.023 to $0.2780/gal. Gasoline taxes increased in nine states, with Indiana having the largest increase of $0.044 to $0.5610/gal.

Diesel fuel taxes decreased in four states, with California’s tax decrease of $0.0420 being the largest. Diesel taxes increased in eight states, with the largest increase in Colorado, which rose by $0.0263 to $0.3068/gal.

Federal tax rates remain at $0.1840/gal for gasoline and $0.2440/gal for diesel, which includes excise tax and an additional $0.001/gal from the Leaking Underground Storage Tank Fund.

The same three states had the lowest gasoline and diesel taxes: Alaska (both at $0.0895/gal), Mississippi (both at $0.1840/gal), and Hawaii (both at $0.1850/gal). The three states with the highest gasoline taxes were California ($0.6982/gal), Illinois ($0.6710/gal), and Pennsylvania ($0.5870/gal). Those same three states also had the highest diesel taxes: California ($0.9212/gal), Illinois ($0.7460/gal), and Pennsylvania ($0.7410/gal).

We update information about federal and state motor fuel taxes in the United States on a semiannual basis, based on tax rates at the beginning of January and July each year.

Principal contributor: Dan Walzer

Tags: prices , gasoline , liquid fuels , diesel , states , map , taxes , oil/petroleum , petroleum products

Breaking up with fossil fuel taxes is hard to do

Featuring Dustin Tingley and Daniel Raimi . By Desmond Dodd on August 23, 2024 .

BiGS Actionable Intelligence

In Wyoming, state tax revenues generated from coal, natural gas, and oil represent up to 65% of its budget, according to the nonprofit Wyoming Outdoor Council . These funds are essential for covering basic services like police salaries and public school education.

However, as the green energy transition progresses, the state’s heavy reliance on fossil fuels raises a critical question: How will states like Wyoming finance government services when these revenues start to decline?"

Wyoming — which is collaborating with Harvard Kennedy School’s Growth Lab to identify sustainable solutions — is hardly alone.

The U.S. has hundreds of similar “energy communities” with tax revenue streams derived mainly from fossil fuels, according to the Washington, D.C.-based independent, nonprofit research institution Resources for the Future (RFF).

The institute estimates that fossil fuels generated $138 billion annually in 2015-19 for all governments in the United States. That figure is likely conservative since it is difficult to obtain reliable data from local governments, Daniel Raimi, director of equity in RFF’s Energy Transition Initiative, told Harvard Business School’s The BiGS Fix .

Compounding this situation, many states don’t have an income tax, says Dustin Tingley, a Harvard University professor. Last year, Tingley authored a major study of stakeholders involved in the clean energy transition that revealed strong resistance to it in a range of local communities. Based on that research, Tingley co-authored with Princeton University political scientist Alexander Gazmararian a book, Uncertain Future: The Politics of Climate Change .

Combined, these factors make the transition to renewable energy not only complicated but also a hard sell, Tingley says.

In general, Americans view fossil fuels as a convenient and low-cost energy source supported by good infrastructure. This favorable perception is magnified in pockets of the country rich in fossil fuel resources. Besides local government revenue, jobs and cultural patterns in support of these industries have flourished over generations to become part of the bedrock of the communities.

The gap between old and new energy tax bases in Alaska, Colorado, and beyond

To understand the impact of fossil fuel-generated tax revenue, in early 2024, RFF looked closely at a subset of energy communities with reliable tax data. These included 79 counties in 10 states, such as North Slope Borough, Alaska; Kern County, California; Weld County, Colorado; and Midland County, Texas.

In energy communities with recent clean energy projects, the RFF estimates that fossil fuel industries continue to produce tax revenues in orders of magnitude higher than the clean energy projects. The study found that fossil fuels generated more than $10,000 per capita in government revenue in 5 of the 79 sample counties reviewed and more than $1,000 per capita in 28 counties. In contrast, solar and wind projects generated about $100 per capita in 11 counties, RFF found. The biggest tax revenue earner among these counties took in only about $1,000 per capita.

Furthermore, while policymakers are struggling to find ways to tap into new clean energy tax revenues, many areas of the U.S. are in the midst of a fossil fuel boom. In New Mexico alone, an increase in natural gas production has fueled a jump in tax revenues of almost 50% over three years.

Poorly targeted incentives

The centerpiece of the Biden Administration’s climate policy , the 2022 Inflation Reduction Act [KS2] (IRA), makes a crude attempt to direct investments in new energy projects to energy communities. On top of new tax credits for clean energy projects, the legislation designates an additional 10% credit if projects are built in areas in which more than 25% of local tax revenues come from fossil fuels.

“It's just not a well-targeted policy,” Raimi told The Bigs Fix. “I don't think a 10% bonus tax credit is going to be a game changer for these places. And there's not really an opportunity to fix that legislation administratively. Congress would have to act [again]."

When renewable energy investments end up in energy communities, it is more by chance than by policy design.

The Internal Revenue Service is charged with interpreting which areas can be defined as an energy community under the IRA, and the IRS recently ruled that nearly half of the land mass in the U.S. qualifies.

On a positive note, RFF’s Raimi points out that the IRS definition of energy communities covers most of New Mexico, West Virginia, and Wyoming. However, inexplicably, large sections of oil- and gas-producing regions are excluded, such as portions of the Permian Basin (in western Texas and southeastern New Mexico), the state of Oklahoma, Bakken (in eastern Montana and western North Dakota), and other parts of North Dakota.

Supply chains for clean energy technologies one solution?

Developing new tax bases for these communities to maintain essential public services will require major economic diversification efforts and financial support from the federal government, according to RFF. Raimi views these shifts as a political strategy to build support for renewable energy projects among project beneficiaries.

One smooth long-term transition could involve building supply chains for clean energy technologies that embed support for those technologies, Raimi says. He cites a growing number of recent investments supporting links between clean energy/decarbonization and manufacturing or other growth initiatives in swing states that are important to both major political parties. Two examples:

North Carolina: Toyota is building a $13.9 billion battery manufacturing plant.

New Mexico: Pattern Energy Group began production this year on the $11 billion Sun Zia wind electricity and transmission project.

While the existing renewable energy investments spurred by the IRA are substantial, Raimi says that he considers efforts so far to be baby steps toward the goal of developing new tax bases for fossil fuel-reliant state and local governments.

“There are a couple of examples, but it's not a systematic trend,” Raimi told The BiGS Fix .

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IRS Tax Tip 2023-15, February 7, 2023

Whether someone travels for work once a year or once a month, figuring out travel expense tax write-offs might seem confusing. The IRS has information to help all business travelers properly claim these valuable deductions.

Here are some tax details all business travelers should know

Business travel deductions are available when employees must travel away from their  tax home  or  main place of work  for business reasons. A taxpayer is traveling away from home if they are away for longer than an ordinary day's work and they need to sleep to meet the demands of their work while away.

Travel expenses  must be ordinary and necessary. They can't be lavish, extravagant or for personal purposes.

Employers can deduct travel expenses paid or incurred during a  temporary work assignment  if the assignment length does not exceed one year.

Travel expenses for  conventions  are deductible if attendance benefits the business. There are special rules for conventions held  outside North America .

Deductible travel expenses include:

• Travel by airplane, train, bus or car between your home and your business destination.
• Fares for taxis or other types of transportation between an airport or train station and a hotel, or from a hotel to a work location.
• Shipping of baggage and sample or display material between regular and temporary work locations.
• Using a personally owned car for business.
• Lodging and  meals .
• Dry cleaning and laundry.
• Business calls and communication.
• Tips paid for services related to any of these expenses.
• Other similar ordinary and necessary expenses related to the business travel.

Self-employed individuals or farmers with travel deductions

• Those who are self-employed can deduct travel expenses on  Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship) .
• Farmers can use  Schedule F (Form 1040), Profit or Loss From Farming .

Travel deductions for the National Guard or military reserves

National Guard or military reserve servicemembers can claim a deduction for unreimbursed travel expenses paid during the  performance of their duty .

Recordkeeping

Well-organized records  make it easier to prepare a tax return. Keep records such as receipts, canceled checks and other documents that support a deduction.

Subscribe to IRS Tax Tips

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Stocks surge while Treasury yields, dollars retreat after Fed signals lower rates

Wall Street and global shares jumped on Friday toward all-time highs, while Treasury yields slumped and the dollar languished, after a speech by U.S. Federal Reserve Chair Jerome Powell confirmed the United States would soon begin interest rate cuts.

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Top Labor Day Travel Trends of 2024

Aaa booking data shows alaska cruises, european cities, and tourist attractions are most popular.

WASHINGTON, DC (Aug. 19, 2024) – This year’s record-breaking , blockbuster summer travel season comes to a close with many Americans exploring Alaska by cruise. According to AAA booking data, Seattle is the number one Labor Day weekend* destination, up nearly 30% from last year when it also topped the list. Anchorage and Juneau are also on the top ten list of Labor Day destinations.  

“This is the time of year to go on an Alaska cruise,” said Paula Twidale, Senior Vice President of AAA Travel. “There are fewer crowds compared to earlier in the summer, and if you’re lucky, you might even catch a glimpse of fall colors! It’s no surprise Alaska cruises are sold out this Labor Day weekend.”  

AAA travel experts say if you’re interested in going on an Alaska cruise next summer, the time to book is now to lock in the best rate and ensure you get the type of cabin you want.   

According to AAA booking data, o verall domestic travel over Labor Day weekend is up 9% compared to last year , while the cost to travel domestically is down 2%. Other top Labor Day destinations include Orlando, New York, Boston, Las Vegas, Denver, Chicago, and San Francisco. For many families, Labor Day is the last hurrah before school begins. To make the most of those trips, AAA recommends identifying must-see sights and creating a flexible itinerary ahead of time. “ Trip Canvas is a great free resource for travelers in the planning phase,” Twidale said. “You can find free things to do in Denver or the best museums in New York City .”  

Travelers taking road trips should expect to pay less for gas compared to last year. The national average over Labor Day weekend in 2023 was $3.81. In recent weeks, gas prices have remained steady, hovering around $3.50. Despite the popularity of summer road trips, overall gas demand is down as daily driving habits have changed post-pandemic, preventing pump prices from spiking. Hurricanes hitting the Gulf and affecting regional refineries could cause gas prices to go up as the peak of the season approaches in September. For drivers taking road trips in their electric vehicles, AAA now offers information on the cost of Level 2 commercial EV charging and updates that data weekly .   

International travel over Labor Day weekend is down 4% compared to last year, per AAA booking numbers , while the cost to travel internationally is up 11%. Most of those travelers are heading to Europe. Eight out of the top ten international destinations booked through AAA are European cities. Travelers renting a car abroad should consider getting an International Driving Permit (IDP), which translates their driver’s license information into 10 languages. Some countries – including Italy and Spain – require it. AAA is the only entity in the U.S. authorized by the State Department to issue an IDP.   

  Top Labor Day Destinations  

  Best and Worst Times to Travel by Car over Labor Day Weekend   

INRIX , a provider of transportation data and insights, says car travelers should avoid the afternoon and early evening hours of Thursday and Friday, as those times will be the most congested. Drivers should hit the road in the morning unless they’re leaving on Saturday when the best time to travel by car is in the afternoon. Travelers returning on Sunday and on Labor Day should leave as early as possible to avoid heavy traffic in the afternoon.    

“Drivers should expect the most severe traffic jams before the holiday weekend as commuters mix with travelers,” said Bob Pishue, transportation analyst at INRIX. “Monitoring traffic apps, local news stations, and 511 traveler information services may help drivers navigate around congestion and reduce driver frustration this Labor Day.”  

Source: INRIX  

*Labor Day Weekend   

AAA looked at booking data for Thursday, August 29 through Monday, September 2, and compared those numbers with booking data for that same five-day period in 2023.   

About AAA   

Started in 1902 by automotive enthusiasts who wanted to chart a path for better roads in America and advocate for safe mobility, AAA has transformed into one of North America’s largest membership organizations. Today, AAA delivers exceptional roadside assistance, helps travelers plan their dream vacations and adventures, offers exclusive member discounts and benefits, and provides trusted financial and insurance services – all to enhance the life journey of our 64+ million members across North America, including over 57 million in the United States. To learn more about all AAA offers or become a member, visit AAA.com.  

  About INRIX  

Founded in 2004, INRIX pioneered intelligent mobility solutions by transforming big data from connected devices and vehicles into mobility insights. This revolutionary approach enabled INRIX to become one of the leading providers of data and analytics into how people move. By empowering cities, businesses, and people with valuable insights, INRIX is helping to make the world smarter, safer, and greener. With partners and solutions spanning across the entire mobility ecosystem, INRIX is uniquely positioned at the intersection of technology and transportation – whether it’s keeping road users safe, improving traffic signal timing to reduce delay and greenhouse gasses, optimizing last mile delivery, or helping uncover market insights. Learn more at INRIX.com.   

S. Korea to Extend Fuel Tax Cut Amid Uncertainty in Middle East

By Heesu Lee

South Korea will extend fuel tax cut for 2 months as rising tensions in Middle East increase global oil price volatility, Finance Minister Choi Sang-mok says in a meeting.

• Tax cut, which is scheduled to expire at end-Aug., will be extended by end-Oct.
• Related story: S. Korea Extends Fuel Tax Cuts for Two Months Until End-August

To contact the reporter on this story: Heesu Lee in Seoul at [email protected]

To contact the editors responsible for this story: Go Onomitsu at [email protected]

Shinhye Kang

© 2024 Bloomberg L.P. All rights reserved. Used with permission.

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Harris and Walz Venture Into Less-Friendly Terrain to Court Pennsylvania Voters

The Democratic presidential ticket went to the crucial swing state on Sunday to visit areas that are competitive and somewhat more conservative.

• Share full article

By Rebecca Davis O’Brien and Nicholas Nehamas

Rebecca Davis O’Brien reported from Pittsburgh, and Nicholas Nehamas reported from Washington.

• Aug. 18, 2024

Before their convention this week that will signal the final sprint to November, Vice President Kamala Harris and her running mate, Gov. Tim Walz of Minnesota, headed out on a brief bus tour on Sunday to fire up voters in perhaps the most crucial battleground state in the 2024 election.

As they toured western Pennsylvania, their play for support beyond the state’s more liberal cities was apparent at the team’s first stop, a field office in Rochester, Pa., in the largely conservative Beaver County: Ms. Harris picked up a volunteer’s cellphone to speak with a resident from Erie, a northwestern city in one of the state’s swingiest counties, which Hillary Clinton lost in 2016 but Joseph R. Biden Jr. won four years later.

“I love Erie,” Ms. Harris said. “At some point we’ll get to Erie.”

Ms. Harris and Mr. Walz were joined on the outing by their spouses, Doug Emhoff and Gwen Walz, traveling in two new campaign buses from the Pittsburgh airport, where they arrived on Air Force Two to greet a small group of supporters.

The Pittsburgh and Philadelphia areas are the two main drivers of Democratic support in Pennsylvania, a state whose 19 electoral votes could decide the presidency. Recent polling shows a neck-and-neck race there between Ms. Harris and former President Donald J. Trump, with some surveys showing Ms. Harris gaining a narrow edge recently.

Mr. Trump is also increasing his presence in Pennsylvania: On Saturday he held a rally in Wilkes-Barre and another is set in York on Monday, while Senator JD Vance of Ohio, his running mate, campaigns in Philadelphia.

Both candidates have used their trips in the state to make attacks.

Speaking to a crowd of supporters outside the Rochester campaign office on Sunday, Ms. Harris appeared to suggest that Mr. Trump was a “coward” — just a day after he had called her a “radical” and a “lunatic” in Wilkes-Barre.

“Over the last several years there’s been this kind of perversion that has taken place, I think, which is to suggest that the measure of the strength of a leader is based on who you beat down,” Ms. Harris said — though she did not name Mr. Trump. “Anybody who’s about beating down other people is a coward.”

President Biden often preferred to campaign in Philadelphia, by far the state’s largest metro area. The city is easily reached from Washington and close to his home state of Delaware, nestled in friendly territory surrounded by counties he carried in 2020 .

Outside Allegheny County, where Pittsburgh sits, western Pennsylvania is less hospitable to Democrats, and Ms. Harris’s visit there suggests she may branch out more than Mr. Biden did.

“God bless them, they need to,” Nancy Cannon, a retired teacher who showed up at the Pittsburgh airport, said of the campaign’s planned visits. She described a landscape of Trump supporters, where she knew of Democrats who were afraid to put out their own lawn signs. “Maybe they would feel more supported,” she said, if Ms. Harris and Mr. Walz showed up.

Ms. Cannon said Ms. Harris’s swift ascent to the top of the Democratic ticket had given a jolt of energy to her family and friends. “I love Joe. But I am happier to see a younger person. I feel like this is an Obama moment.”

The trip points to the Democratic hopes that Mr. Walz can help the party reach working-class voters outside the big cities. The suburbs and small towns surrounding Pittsburgh resemble areas in Minnesota where Mr. Walz has performed well in his previous races.

One campaign stop on Sunday was also a clear effort to tap into Mr. Walz’s personal history: a football practice at Aliquippa High School in a former steel town with many Black residents that has struggled economically for decades. Mr. Walz’s own experience as a high school football coach has been a touchstone of the campaign so far, with Ms. Harris occasionally referring to him as “Coach Walz.”

Mr. Walz told the team he “remembered every single call” from his team’s state football championship. He and Ms. Harris were joined at the event by Jerome Bettis, the Hall of Fame running back who won a Super Bowl with the Pittsburgh Steelers. Mr. Bettis, nicknamed The Bus, was a surprise, if appropriately named, addition to the Harris-Walz motor coach tour, which also made short stops at a nearby firehouse, a Sheetz gas station and Primanti Bros., a beloved chain of sandwich shops founded in Pittsburgh.

“The way you win elections in Pennsylvania is literally going everywhere,” said Lt. Gov. Austin Davis of Pennsylvania, a Democrat who is from the Pittsburgh area. “Philadelphia, Pittsburgh, but all the small communities in between.”

Mr. Davis also said that Ms. Harris would find a welcome audience in the working-class region for the economic agenda she rolled out last week that focused on lowering the costs of everyday life and cutting taxes for working families.

Conor Lamb, a Democrat who once represented a congressional district outside Pittsburgh, said Mr. Biden had become well known to many Pennsylvania voters, thanks to his decades of service as a senator in neighboring Delaware, an advantage Ms. Harris does not possess.

Mr. Lamb said that the bus tour reflected the fact that Democrats had learned their lesson from Mrs. Clinton losing the state after focusing most of her campaign on the major cities.

“You can’t just do Philly and Pittsburgh and rely on social media,” Mr. Lamb said.

And he agreed that Ms. Harris’s economic plans would be popular in places like Rochester, a small town once known for its glassmaking factories that sits in his old district.

“Some of the things that she laid out in that speech — the child tax credit, extending health care subsidies — all that kind of stuff is just universal,” Mr. Lamb said. “That should do as well in Rochester as it does in the heart of the city of Pittsburgh. And I’ve felt in the past that Democrats were a little bit afraid to go on the offense in those areas.”

Rebecca Davis O’Brien covers campaign finance and money in U.S. elections. She previously covered federal law enforcement, courts and criminal justice. More about Rebecca Davis O’Brien

Nicholas Nehamas is a Times political reporter covering the re-election campaign of President Biden. More about Nicholas Nehamas

How healthy is Oklahoma's oil and gas industry? A look a production, revenue

Fall in demand leads to lower oil production demand growth forecast for remainder of the year and 2025, according to industry experts..

• Oklahoma’s oil and gas production shows minor gains in monthly revenue as oil demands stall globally.
• Oil and gas gross production tax totaled $83,78 last month, a 0.7% increase from June.
• Global market trends reflect low production needs continuing into 2025.

Revenue to the state from Oklahoma's oil and gas business increased only slightly in July, according to State Treasurer Todd Russ.

In its monthly report, Russ' office reported Monday that revenue from the state's gross production tax (GPT) was $83.7 million, up just $600,000 from the previous month.

Since the beginning of the year, GPT revenue has dropped sharply from its $160 million level in January, a sign of slowing demand for oil and gas, Russ said.

WTI Crude oil prices dropped about $1 from June, averaging $81.80 a barrel, according to the report.

More: Dell announces worldwide layoffs; effect on OKC office unknown

Industry forecasts predicted higher gains in GPT, a severance tax imposed on producers for the extraction of oil and natural gas. Russ' report noted that the Organization of the Petroleum Exporting Countries, or OPEC, lowered demand growth forecasts for the remainder of the year, "as prices appear stuck between war premium and oil demand outlooks."

The International Energy Agency predicts low global oil production demand will continue into 2025 as production needs have fallen by about half since last year, according to a report released this month. The industry depends heavily on its U.S. market, which makes up about one-third of its consumers for global gasoline.

The average price of gasoline across the United States increased to $3.60 in July from $3.58 last month, the treasurer's report said.

Russ also reported that the unemployment rate in Oklahoma increased slightly in July to 4.3%, compared to 3.4% in June. The average U.S. rate for a 30-year fixed rate mortgage in July was 6.85%, down 1.01% from the previous month.

The Key Points at the top of this article were created with the assistance of Artificial Intelligence (AI) and reviewed by a journalist before publication. No other parts of the article were generated using AI. Learn more .

Money blog: Stamp duty hike on way; 'worrying' increase in energy bills this year

Welcome to the Money blog, a hub for personal finance and consumer news and tips. Today's posts include reaction to Ofgem announcing an energy price cap increase, as well as a warning over stamp duty. Listen to Ed Conway's analysis of UK borrowing and potential tax rises as you scroll.

Friday 23 August 2024 21:14, UK

• Price cap increase 'worrying', energy secretary says
• Warning £2,500 will be added to stamp duty 'overnight' in March
• Nationwide trumps rivals to offer new lowest mortgage rate

Essential reads

• Savings account that could put your child on strong financial footing at 18
• 'I cook with air fryer in living room after kitchen win went wrong'
• Ed Conway : Are tax rises inevitable - or is chancellor considering another way?
• Listen to Conway on the Daily above and  tap here to follow wherever you enjoy podcasts

Tips and advice

• How to get money back when purchase over £100 goes wrong
• What's the best way to buy travel insurance if I have a medical condition?
• Cheap Eats : Top Yorkshire chef shares Yorkshire pudding secrets

Ask a question or make a comment

By Jimmy Rice, Money blog editor

A lot of people have been scratching their chins and wondering whether the new government might be overstating the economic mess left by the previous regime.

The accusation, from the right, is that a narrative is being built to justify tax rises motivated not by necessity but ideology.

Data that's trickled in over the weeks since Rachel Reeves stepped into Number 11 - GDP growth, inflation remaining low - hasn't always helped the Labour story.

But this week, in the words of data and economics editor Ed Conway , "we had the latest public finances numbers and here the picture is considerably closer to the Reeves version than those other bits of data".

Government borrowing for July overshot expectations - and the consequences for public services and the tax burden in the October budget now look "grim", Conway wrote .

He discussed all of this in an episode of the Daily podcast, which you can listen to here or wherever you enjoy podcasts ...

Despite warning about the budget, Conway's sources suggest another route is still being considered by the chancellor, one that involves changing how the public finances are measured and judged. You can read about this here...

We also learned this week of the timeline for new EU visa rules.

UK citizens will need to pay a €7 visa-waiver charge to travel to Europe from next year. The additional charge, which is similar to the US ESTA, is part of a series of new border checks and entry requirements the EU is bringing in.

They'll apply when entering the Schengen area, which includes EU member states, plus Iceland, Liechtenstein, Norway and Switzerland. 

People under 18 or over 70 will be exempt from the charge - as will those travelling to Ireland or Cyprus.

The waiver will last for three years or until your passport expires.

Its official title is the European Travel Information and Authorisation System (ETIAS), and its implementation will follow the introduction of the EU Entry/Exit System (EES). The latter will require people to have their fingerprints registered and their pictures taken on arrival to airports.

Addressing the rollout, EU home affairs commissioner Ylva Johansson said the EES will enter into operation on ­10 November while the ETIAS will follow shortly after that in 2025 - likely May.

However, it is thought there could be a six-month grace period before the visas become compulsory - taking it to November next year.

On Friday morning, it was confirmed that the energy price cap would rise in October, with another hike expected in January.

"Unfortunately, a volatile wholesale market, and a country heavily reliant on imported energy has created a perfect storm for fluctuating household bills," said Dr Craig Lowrey, principal consultant at Cornwall Insight.

He argued that there may be a case for re-examining the price cap system given it's not protecting households from global energy trends.

A typical annual bill will now be £1,717 from the autumn, with £45 forecast to be added to that in the new year.

Here in Money, we examined football shirt prices as the new Premier League season got under way...

For a fuller understanding of this story, watch this explainer put together by our digital video team...

Three more essential reads from Money that are worth checking out are...

We're signing out of regular updates now until after the bank holiday weekend - but do check out our weekend read from 8am on Saturday. This week we're examining whether the Nike trainers bubble has burst.

Lots of stories we've covered in Money over the last week or so prompted a flurry of comments. We'll start with the multiple updates we've done on Gail's...

Some readers were on board with the backlash but more couldn't see what the fuss was about...

Surprised the faux posh in Walthamstow 'village' would baulk at pricey offerings from Gail's. They already seem quite happy to pay up market prices at their existing Spar store without complaint. Pack of sausages with la-de-da ingredients nearly 6-quid. I ask you! Keith

Most places would be thrilled to have Gail's opening. Their food and bread is excellent as is their coffee, they have very attractive décor and bring a touch of class to any high street. Petalin

We also had a fair few who wondered why we were covering this story at all...

Who or what is Gail? Alangillie

When did Walthamstow become a 'leafy suburb'. Thought it was home to East17? And why does this constitute national news? Shops open and close all the time in areas all over the country. Does one of your editors live there and opposes it? I don't see how this is news at all. City boy

Sometimes our posts prompt questions rather than comments - such as the one below following our feature on Section 75 consumer rights...

I want to buy a car for £7,000 from a dealership. Have I got credit card consumer protection if I pay half cash and half on a credit card? Clive Blackpool

The answer is that, yes, you would be protected - even if you just pay 1p of it on credit card. Everything you need to know is here...

Lots of you got in touch following our Saturday feature on how couples split their finances...

Readers shared how they and their partners split things...

We divide all bills more or less equally. He earns a lot more than I do and keeps his money/savings to himself after 50 years of being together. I have absolutely no idea how much in savings he has and he won't share anything. Yes you are reading this correctly! CP

100% all money going into one account for bills, disposable income etc - we manage it all on one spreadsheet! Never had a disagreement ever after 13 years and we're only 30! Can't ever imagine going for dinner and someone saying 'I'll get this' - how do people do it? abbie s

My partner and I are discussing purchasing a property together. Our rule will be 50% of the mortgage each regardless of income as we are both 50% owners of the asset. Other bills we'll just decide based on income. Adam

I earn a lot more than my partner, so once our relationship was mature enough I put the difference into shared savings. Since having a child all money goes into a joint account except for a small allowance each. Financial equality is so important for a happy relationship. Linda

It's simple. I do not know what my wife earns, she does not know what I earn, we have separate [accounts]. We buy what we need and want, when we go out she pays one time I pay next, we do not even look at the bill. That way you have no problems. Cozy Powell

My partner earns around £60k more than me per year and we split our bills down the middle, however, he buys all the food for us and the pets and generally pays when we go out. I couldn’t ask him for extra, I manage just fine with the current arrangement. LHam

All outgoing were paid from a joint bank account which we paid into from our personal accounts, salary split at the start was roughly 60/40 so I would pay 60% of the total and my wife 40% (plus 10%), any money left in our individual accounts was our own. 58mprl

The post that led to the most consternation this week concerned the hiking of fines for parents taking kids out of school...

You said...

Why are the government not looking at the travel agents? My partner and I both work in a school. We have no children at school but we have to pay extortionate prices for our time away as we have to go in school holidays. Tony

If I choose to take my children out of school to go on holiday, because let's face it parents can save a lot of money when the holiday season is over. I am a single parent with two kids, I'm holding down two jobs. Andy Henderson

As a teacher, I understand the frustration many parents feel about the extortionate prices of holidays. It's disheartening to see families AND teaching staff not being able to afford a holiday. I also understand how difficult it is for a child to catch up on missed work. Mikki

Highly disagree with the term time holiday penalty. There are countries where parents can authorise up to five days of leave per year. A long weekend here and there, or a week-long trip once a year is not going to hinder a child's prospect! TermTimeTravel

Starbucks' incoming chief executive, Brian Niccol, is under fire over the company's offer for him to commute around 1,000 miles by private jet.

Social media users were quick to criticise the world's biggest coffee shop chain over the move in light of its sustainability efforts elsewhere, such as banning plastic straws.

Mr Niccol's job offer said he will not have to relocate to the company's headquarters in Seattle, Washington, from his family home in Newport Beach, California, when he takes up his new role on 9 September.

Read more here...

Storm Lilian is causing disruption to travellers and festival-goers ahead of the bank holiday weekend.

Two stages at Leeds Festival have closed for the day, the BBC Radio 1 Stage and Aux Stage.

British Airways has cancelled 14 flights from Heathrow and delayed others, while two flights from Leeds Bradford Airport were cancelled and three morning arrivals diverted to Liverpool.

The energy price cap increase has led to renewed calls for a winter fuel payment U-turn.

The government plans to means test the payment for pensioners, making it available only to those receiving pension credit.

But Caroline Abrahams, charity director at Age UK, said this was "reckless and wrong" and "spells disaster for pensioners on low and modest incomes" after the latest bad news for energy costs.

Shein found two cases of child labour in its supply chain last year, the fast fashion retailer has said.

The company's 2023 sustainability report, published yesterday, said it suspended orders from the suppliers that had employed children under 16.

Both cases had been "resolved swiftly", it said, with remediation steps including ending underage employees' contracts, arranging medical check-ups, and facilitating repatriation to parents or guardians as necessary.

"We remain vigilant in guarding against such violations going forward, and in line with current policies, will terminate any non-compliant suppliers," Shein said in the report.

Shein has stepped up audits of manufacturers in China to assuage criticisms of its low-cost business model ahead of a planned flotation.

It tightened its supplier policy last October after the child labour cases were found, so that any severe breaches - called "Immediate Termination Violations" - would result in ending the relationship with the supplier immediately.

Previously, suppliers such as those that employed minors had 30 days to resolve the issue, failing which Shein would cut ties.

It's time to check if you have any Tesco Clubcard vouchers close to expiring, as £14m worth are due to run out on Saturday.

Vouchers are only valid for two years from the date they were issued, so it's worth making sure you don't have any hidden away in your account.

To check online, go to the Tesco Clubcard website and select "Clubcard account" and then "Vouchers". 

 You should then be able to see a table listing your available vouchers and their expiry dates.

If you're using the Tesco app, open it up, go to "Clubcard" and then to the "Vouchers" section.

What to do with your vouchers?

You can spend your hard-earned vouchers either online or in person. 

Alternatively, you can double the value of your vouchers by spending them at Tesco's reward partners , including Disney+, RAC and Zizzi.

By James Sillars , business reporter

It's a tentative start to the day's trading on financial markets with the focus firmly on the United States. Jackson Hole in Wyoming, to be exact.

That is where the chair of the US central bank will make an eagerly anticipated speech in which he is widely expected to signal that the first interest rate cut by the Federal Reserve will come next month.

Jay Powell is, however, expected to temper market expectations for several rate cuts by the end of the year.

That could hamper recent progress against the US currency by the pound, which is currently trading at one-year highs versus the dollar at $1.31.

It could also hurt a rate-sensitive stock market, which is desperate for lower borrowing costs.

As such, the FTSE 100 is trading 0.2% up in early deals at 8,304.

Miners and energy stocks are leading the way on upticks in prices.

Brent crude oil stands at $77 a barrel.

The energy price cap limits what utility companies can charge customers for a daily standing charge and each kilowatt-hour of gas and electricity they use.

Regulator Ofgem releases the cap quarterly and estimates how much the average household would typically pay over a year at the new unit price.

This figure, £1,717, assumes a household with 2.4 people living in it consuming 2,700 kWh for electricity and 11,500 kWh for gas.

The real annual cost per customer will be different depending on how much energy you actually use. If you use more gas and electric than £1,717 buys, you will pay more.

With prices fluctuating significantly at each quarterly release over the last four years, the use of a yearly figure is also quite an imperfect basis for medium-term household budgeting.

Here's what is actually capped: 

• Each unit of electricity: 24.5p per kWh (up from 22.36p)
• Each unit of gas: 6.24p per kWh (up from 5.48p)
• Electric standing charge: 60.99p (up from 60.12p)
• Gas standing charge: 31.66p (up from 31.41p)

Ofgem's price cap only applies to people in England, Scotland and Wales on standard variable or default tariffs.

This is most households, whether you pay by direct debit or a prepayment meter.

It doesn't apply to the small numbers of people still on fixed-rate tariffs.

Another quarter, another energy price fluctuation to contend with - another change to make to your household budget.

But there are fixed deals available cheaper than the new price cap, according to Uswitch.

The average household can save £125 against October's price cap with the cheapest 12-month fixed tariff, said Richard Neudegg, director of regulation at Uswitch.

At £1,592 typically per anum, it would also stave off another small increase expected in January, he said. 

It is worth pointing out that it is in Uswitch's favour for people to move, and a fixed tariff could always end up costing you more if the price cap were to drop below that fixed rate in April and June next year.

"Customers staring down the barrel of winter might question whether the current price cap system is really the best way to put real pricing pressure on suppliers," said Mr Neudegg.

"It's important for households looking for certainty to run a comparison to see what's available to them and see personalised prices based on how much energy they are likely to use."

Here are the top 10 fixed energy-only tariffs that could help you beat the price rise, according to Uswitch:

Pensioners are being urged to check if they are eligible for the winter fuel allowance after universal payments were scrapped by new Chancellor Rachel Reeves last month.

Previously, the money was available to everyone above state pension age, but now it will be limited to people over state pension age who are receiving pension credit or other means-tested support.

It means the number of people entitled to the money will drop from 11.4 million to just 1.5 million.

The payment is £200 for households where the recipients are all under 80, and £300 where they are over 80.

While around 1.4 million pensioners are already receiving pension credit, there are up to an estimated 880,000 households eligible for the support who are yet to claim, the Department for Work and Pensions says.

The government's awareness drive will help identify households not claiming the benefit, and encourage pensioners to apply by 21 December - the last date for making a backdated claim for pension credit in order to receive the Winter Fuel Payment.

It will focus on "myths" that may stop people applying, such as how having savings, a pension or owning a home are not necessarily barriers to receiving pension credit.

More information on applying for pension credit can be found on the  government's How to Claim page .

Stockbroker AJ Bell says a price rise at the start of colder months is the "exact scenario" British households hoped was behind them - particularly pensioners.

Combined with the effects of two years of high inflation, residents are set to spend another winter watching "thermostats like a hawk", said head of financial analysis Danni Hewson.

Many pensioners, in particular, have already tried all the tricks available to keep bills down and will be left merely hoping temperatures stay mild, she added.

"For many people having to find an extra £149 a year will be akin to pouring fresh salt on healing wounds," Ms Hewson said.

"For around 10 million older people who are also faced with having to make do without their winter fuel payments, it adds insult to injury. 

"Some pensioners will be able to manage, but others will find the winter months particularly tough."

Energy costs will be £117 below those last Autumn, but will still be £675 higher than October 2020.

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• |  August 22, 2024
• By Naomi Parris
• -  August 22, 2024

THE hinterland regions have experienced a significant increase in passenger travel and cargo traffic over the past year. President Dr. Irfaan Ali attributes this growth directly to government interventions aimed at eliminating excessive taxes on gasoline and diesel. These measures were implemented to mitigate the impact of rising global fuel prices.

“We removed the [value added tax ] VAT on local air travel, putting back $3 billion in your pocket, giving you $3 billion saving right away off the bat,” the Head of State said on Monday, while addressing hundreds of indigenous village leaders, also known as Toshaos at the ongoing National Toshao’s Conference (NTC).

As of June 30, 2024, passenger traffic in the hinterland regions have increased to 48 per cent, while cargo movement has increased to 50 per cent. “More people are visiting your communities. More spending is created in your communities,” President Ali said. Back in 2022, several Toshaos had highlighted that the high airfares are contributing to a significant increase in the price of basic commodities. The village leaders had explained that while the infrastructure to facilitate air traffic was in place, there had not been much frequent flights during that period. Some hinterland communities can only be accessed by air.

To address these concerns, President Ali had set up a meeting with Toshaos of various hinterland communities to engage domestic airline operators. Earlier this month, Guyana’s Vice President, Dr. Bharrat Jagdeo, had disclosed that the government has forgone approximately $80 billion in taxes by eliminating a 50 per cent excise tax on diesel and gasoline. “We are foregoing over $80 billion of taxes by removing a 50 per cent excise tax on fuel on just two things, on diesel and gasoline. Nearly $80 billion of foregone taxes that we gave up because we removed the 50 per cent excise tax. So that’s 80 billion Guyana dollars. And what does it translate into for the individual… for every gallon of gas that you buy, or every gallon of diesel, the government basically subsidises it $500 Guyana dollars,” Dr. Jagdeo explained. This measure, he noted, has helped stabilise the cost of production and transportation in Guyana, despite global increases in fuel prices.

“Even though global fuel prices have surged, our intervention has kept local transportation and production costs stable. Unlike other countries, where residents and industries face higher costs due to increased fuel prices, we have managed to keep these costs constant.” Significant progress has been made in accelerating Amerindian and hinterland development through various initiatives, including financial support from Carbon Credit revenues, Presidential Grants, the Amerindian Development Fund, and other programmes across several ministries. Over the past four years, the government has invested heavily in improving essential services such as healthcare, education, energy, and social welfare, with billions of dollars being allocated towards these goals. In Georgetown this week, more than 300 indigenous village leaders are coming together. The week-long conference provides Amerindian leaders with an opportunity to engage in direct consultation with the President and members of his Cabinet regarding matters that impact their communities. It also allows them to propose suggestions for advancing their development.

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