The Labor Day Gas Price Burden - SmartReads by SmartAsset

With Labor Day weekend approaching, millions of Americans are preparing for one last major road trip of the summer. Gas prices have eased from their annual highs, but drivers are not feeling the savings equally. Prices at the pump vary considerably from state to state, as does the share of household income required to fill a tank. In some states, relatively low gas prices and higher incomes make fueling up less of a financial strain, while in others, a routine fill-up takes a much larger bite out of household budgets.

SmartAsset analyzed changes in average gas prices across all 50 states between May 21, when retail gas prices peaked in 2026, and August 31, 2026. The study also calculated each state’s gas-price burden, or the cost of filling a 15-gallon tank as a share of estimated median weekly household income.

Key Findings

Gas prices have decreased in all states. Since prices peaked nationwide on May 21, gasoline has become cheaper in each of the 50 states, with the decline led by Ohio where there’s been an 18.9% drop in the price at the pump.
West Virginia has the highest gas-price burden, Maryland the lowest. A 15-gallon tank of gas costs 4.8% of median weekly household income in West Virginia, compared with 2.8% in Maryland.
Indiana and Texas have the lowest prices at the pump. The average price in Indiana for a gallon of regular is $3.39. In Texas it’s $3.61.
The Pacific continues to claim the nation’s highest prices. California, Hawaii and Washington have the three highest retail gasoline prices. A gallon of regular costs more than $5 in each of the three states.

Questions and Answers

Going into the Labor Day 2026 holiday, which state had the highest gas prices?

California. There, the average price of a gallon of regular gas is $5.69.

Going into the Labor Day 2026 holiday, which state had the lowest gas prices?

Indiana. There, the average price of a gallon of regular is $3.39.

What is the “gas-price burden?”

The gas-price burden measures gasoline cost relative to ability to pay. As used here, it’s the percentage of median weekly household income needed to pay for 15 gallons of regular gasoline.

Going into the Labor Day 2026 holiday, which state had the highest gas-price burden?

West Virginia. There, the average price of a 15-gallon tank of regular gasoline costs 4.8% of the median household’s estimated weekly income.

Going into the Labor Day 2026 holiday, which state had the lowest gas-price burden?

Maryland. There, the average price of a 15-gallon tank of regular gasoline costs 2.8% of the median household’s estimated weekly income.

Where have gas prices fallen the most?

Ohio drivers have seen the nation’s biggest drop in gas prices since national prices reached their 2026 peak on May 21. The state’s average price has fallen 18.9%.

Methodology

The average retail gasoline price for each of the 50 states, reported by AAA as of August 31, 2026, was compared with estimated current median household income. Estimated current median household income was calculated by adjusting each state’s 2024 median household income from the U.S. Census Bureau’s American Community Survey 1-year estimates using growth in the Employment Cost Index (ECI) for private-industry wages and salaries from the 2024 annual average through the second quarter of 2026. Because 2026 state-level wage growth data was not available at the time of publication, this analysis applied the national ECI growth rate uniformly to all states, which may over- or understate income gains in states whose wage growth diverged from the national average. Estimated annual median household income was divided by 52 to express the cost of a 15-gallon fill-up as a share of weekly income. AAA gasoline prices from May 21, 2026, were used to measure the change through August 31. Gas-price burden percentages were calculated using greater precision than shown for display. Rankings reflect the underlying unrounded values, so percentages that appear identical in the chart may not represent actual ties. Source data providers are not affiliated with, and do not endorse or sponsor, this study or its findings.