West Virginia and Montana have the highest total taxation rates, both nearing 30%, with a significant contribution from severance tax. Texas and Oklahoma have totals around 25-27%, with a relatively higher severance tax component. Colorado, New Mexico, and North Dakota show combined royalty and severance tax around 20-22%. Ohio, Pennsylvania and California have the lowest total rates (~15-17%) as they don’t have severance taxes. The chart does not include ad valorem taxes which can be imposed in certain jurisdictions.
* Royalties are paid by oil and gas producers to mineral rights owners. Severance Tax is imposed by states on producers. In addition, there may be ad-valorem taxes imposed by local authorities.
See Also:
Crude Oil Cost – US
Crude Oil Cost – Canada