Red Dyed Diesel is exactly like regular diesel in every way except that it’s red, available only for off-road use and exempt from state and federal taxes. That last difference is the most important, because depending on which state you live in, using red dyed diesel in your off-road equipment can save you nearly a dollar per gallon. Below is a table that breaks down what costs taxes add to a gallon of diesel in each individual state, and how much can be saved when regular diesel is substituted for red dyed diesel in eligible off-road equipment.
Red Dyed Diesel Per Gallon Savings By State
| State | Diesel State Excise Tax ¢ | Diesel Federal Excise Tax ¢ | Savings With Dyed Diesel ¢ |
|---|---|---|---|
| Alabama | 30.00 | 24.40 | 54.40 |
| Alaska | 8.95 | 24.40 | 33.35 |
| Arizona | 26.00 | 24.40 | 50.40 |
| Arkansas | 28.50 | 24.40 | 52.90 |
| California | 38.90 | 24.40 | 63.30 |
| Colorado | 20.50 | 24.40 | 44.90 |
| Connecticut | 40.10 | 24.40 | 64.50 |
| Delaware | 22.00 | 24.40 | 46.40 |
| District of Columbia | 23.50 | 24.40 | 27.90 |
| Florida | 4.00 | 24.40 | 28.40 |
| Georgia | 32.20 | 24.40 | 56.60 |
| Hawaii | 16.00 | 24.40 | 40.40 |
| Idaho | 32.00 | 24.40 | 56.40 |
| Illinois | 46.70 | 24.40 | 71.10 |
| Indiana | 53.00 | 24.40 | 77.40 |
| Iowa | 32.50 | 24.40 | 56.90 |
| Kansas | 26.03 | 24.40 | 50.43 |
| Kentucky | 21.60 | 24.40 | 46.00 |
| Louisiana | 20.01 | 24.40 | 44.40 |
| Maine | 31.21 | 24.40 | 55.60 |
| Maryland | 27.85 | 24.40 | 52.25 |
| Massachusetts | 24.00 | 24.40 | 48.40 |
| Michigan | 27.17 | 24.40 | 51.57 |
| Minnesota | 28.50 | 24.40 | 52.90 |
| Mississippi | 18.00 | 24.40 | 42.40 |
| Missouri | 19.50 | 24.40 | 43.90 |
| Montana | 29.55 | 24.40 | 53.95 |
| Nebraska | 24.80 | 24.40 | 49.20 |
| Nevada | 27.00 | 24.40 | 51.40 |
| New Hampshire | 22.20 | 24.40 | 46.60 |
| New Jersey | 13.50 | 24.40 | 37.90 |
| New Mexico | 21.00 | 24.40 | 45.40 |
| New York | 8.00 | 24.40 | 32.40 |
| North Carolina | 38.50 | 24.40 | 62.90 |
| North Dakota | 23.00 | 24.40 | 47.40 |
| Ohio | 47.00 | 24.40 | 71.40 |
| Oklahoma | 19.00 | 24.40 | 43.40 |
| Oregon | 36.00 | 24.40 | 60.40 |
| Pennsylvania | 74.10 | 24.40 | 98.50 |
| Rhode Island | 34.00 | 24.40 | 34.20 |
| South Carolina | 26.00 | 24.40 | 50.40 |
| South Dakota | 28.00 | 24.40 | 52.40 |
| Tennessee | 27.00 | 24.40 | 51.40 |
| Texas | 20.00 | 24.40 | 44.40 |
| Utah | 31.90 | 24.40 | 56.30 |
| Vermont | 28.00 | 24.40 | 52.40 |
| Virginia | 27.00 | 24.40 | 51.40 |
| Washington | 49.40 | 24.40 | 73.80 |
| West Virginia | 20.50 | 24.40 | 44.90 |
| Wisconsin | 30.90 | 24.40 | 55.30 |
| Wyoming | 23.00 | 24.40 | 47.40 |
How Much Can You Save By Switching To Red Dyed Diesel?
Let’s take a company that purchases 2,000 gallons of regular diesel each month in Texas for off-road use. Using this information, we’re able to figure out that this company pays an extra $880 in taxes every month. If this company were to switch to red dyed diesel, then they’d save that money which in the course of a year would add up to $10,560. So this company could have an extra 10K at the end of the year, and just by switching to red dyed diesel.
