A reader asked the Roy Howard Community Journalism Center’s “What Is True?” Researchers whether a Facebook claim that Mississippi’s gas use tax will increase is true. The claim also stated the proceeds from this tax go into Mississippi’s more than $3 billion in unallocated funds. 

RESULTS: These claims are misleading. 

Mississippi, like all other states, collects sales tax on products sold in the state, including gas. To learn more about Mississippi’s gas tax, read the full fact-check below. 

The claim that the gas tax rate is increasing is true. In 2025, the rate will rise from 18.4 cents to 21.5 cents per gallon. It will increase by 3 cents each year until July 1, 2027, reaching 27.4 cents per gallon. 

During the 2025-26 fiscal year, the state collected $33.7 million in gas tax revenue. This revenue accounted for about 0.44% of the general fund. 

However, the claim that this tax is directed to unallocated state funds is misleading.

According to Mississippi Today, the increased gas tax revenue is allocated to the Mississippi Department of Transportation for road construction and maintenance. 

Mississippi’s general funds are also not unallocated, as the post claims. The state’s general fund allocation is publicly available here, and the proposed budget for the next fiscal year is available here. 

The $3 billion in unallocated funds mentioned in the original Facebook post most likely refers to the state’s reserve funds. In 2025, the Joint Legislative Budget Committee recommended that the state have $2.749 billion in reserve. These unallocated funds would be kept like savings in case the state has a budget shortfall or faces an expensive emergency, such as a natural disaster. 

About “What Is True?”  

The RHCJC “What Is True?” team of graduate investigators examines everything from viral online posts to local community rumors. If you have a question, submit it to the “What Is True?” inquiry form on the RHCJC website or call 855-IS-IT-TRU (855-474-8878).