JACKSON, Miss. (WJTV) – A gas tax hike at the pump will become law in Mississippi on July 1, 2025. This is part of House Bill 1, which lawmakers passed during the 2025 Legislative Session. The bill will phase out the state’s income tax.
Funds from the gas tax increase will be given to the Mississippi Department of Transportation (MDOT) to improve the state’s infrastructure.
“Finally, after 38 years adjusting the fuel tax and the user fees on using the roadways because that had not been done for nearly 40 years,” said Brad White, executive director of MDOT.
Beginning July 1, the gas tax will go up $0.03 cents per gallon over three years.
“It would probably take effect on my lawnmower and my pocket. But if it’s going to help in situations to help the state and the city, then it’s probably needed,” said Lee Payton, a Jackson resident.
White said the increase would give MDOT about an additional $200 million to repair roads and bridges.
“That would be split not just between the Department of Transportation, but also the State Aid Road System, which benefits the counties and cities around the state on the state aid roads that we have,” he said.
White said the funds from the gas tax will be additional funding to their $1.5 billion appropriations bill that they’re authorized to spend, and the first $80 million the lottery brings in each year through 2028.
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