Given a self-similar $K$ set defined from an iterated function system $Gamma=(gamma_1,ldots,gamma_n)$ and a set of function $H={h_i:Ktomathbb{R}}_{i=1}^d$ satisfying suitable conditions, we define a generalized gauge action on Kawjiwara-Watatani algebras $mathcal{O}_Gamma$ and their Toeplitz extensions $mathcal{T}_Gamma$. We then characterize the KMS states for this action. For each $betain(0,infty)$, there is a Ruelle operator $mathcal{L}_{H,beta}$ and the existence of KMS states at inverse temperature $beta$ is related to this operator. The critical inverse temperature $beta_c$ is such that $mathcal{L}_{H,beta_c}$ has spectral radius 1. If $beta<beta_c$, there are no KMS states on $mathcal{O}_Gamma$ and $mathcal{T}_Gamma$; if $beta=beta_c$, there is a unique KMS state on $mathcal{O}_Gamma$ and $mathcal{T}_Gamma$ which is given by the eigenmeasure of $mathcal{L}_{H,beta_c}$; and if $beta>beta_c$, including $beta=infty$, the extreme points of the set of KMS states on $mathcal{T}_Gamma$ are parametrized by the elements of $K$ and on $mathcal{O}_Gamma$ by the set of branched points.
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