Michigan drivers are seeing a new number at the pump this week as we kick off 2026. While the post-holiday season usually brings a dip, a major overhaul to the state’s fuel tax system took effect on January 1st.
The state has officially scrapped the 6% sales tax on gas, replacing it with a flat motor fuel tax of about 52 cents per gallon. The goal being to ensure every cent you pay in gas tax goes directly toward fixing our roads.
Statewide, you’re looking at an average between $2.70 and $2.81. That’s actually a win compared to last year, with prices down about 30 cents from January 2025.
If you’re filling up in Jackson, expect to pay a bit more—averages there are hovering near $2.92, making it one of the state’s current hot spots along with Ann Arbor and Lansing. For the best deals, head north or west; Traverse City and Grand Rapids are leading the pack with lows in the $2.50 range.
