Fuel taxes are the part of your fill-up that really stings – and this spring, they’re hitting even harder.
Now, with fuel prices climbing and the war in the Middle East driving costs up, governors in several states are stepping in to try to ease the pain for at least some drivers.
And more states could be next.
Indiana
Indiana Gov. Mike Braun made a move on Wednesday. He announced a gas tax holiday – but diesel isn’t getting a break.
Braun issued an emergency declaration to pause the state’s 7% usage tax. For April, that tax was set at 17.2 cents per gallon.
The usage tax is tied to gas prices. It’s calculated by multiplying the statewide average retail price per gallon by the state retail tax.
And it’s on top of the state’s 36-cent gas excise tax.
The break lasts 30 days, running through May 8.
“I am declaring a gas tax holiday to give Hoosiers relief from the pain at the pump from high gas prices,” Braun said. “Affordability is my top priority.”
The governor also put pressure on gas stations to actually pass those savings on to drivers. He also called on the Attorney General to crack down on any price gouging.
I am suspending Indiana’s gas tax for at least 30 days to provide Hoosiers relief from the pain at the pump from high gas prices. pic.twitter.com/d0FlmIRN5M
— Governor Mike Braun (@GovBraun) April 8, 2026
Georgia
Georgia jumped first this year with its own fuel tax break.
Normally, drivers pay 33.3 cents per gallon for gas and 37.3 cents for diesel.
On March 20, Gov. Brian Kemp signed a bill to hit pause on those taxes.
The governor’s action suspends the gas and diesel taxes through late May.
Even with that move, diesel prices are still climbing. TruckMiles reports the current average diesel price in Georgia is now $5.17. The price is up 4 cents since the law took effect.
House Speaker Jon Burns said the tax suspension “will save Georgians and the truckers who keep our state moving nearly $400 million over the next 60 days.”
The suspension does not apply to local sales or use taxes.
IFTA fuel tax break
There’s extra relief for truckers under the International Fuel Tax Agreement.
Georgia officials say motor carriers licensed under IFTA don’t have to pay the state’s motor fuel excise tax during the break.
That means truckers can buy qualifying fuel tax-free and log miles in the state without being taxed on them.
But there’s no skipping paperwork – IFTA reports still have to be filed, and drivers must log both taxed and tax-free fuel purchases.
Miles driven in Georgia between March 20 and May 19 must be reported as non-IFTA miles.
Additional information from the state is available.
Connecticut
Connecticut is still stuck in neutral.
About a month ago, Gov. Ned Lamont floated a fuel tax holiday as gas and diesel prices climbed.
Right now, the diesel average is $5.36 – down 33 cents since that proposal.
But nothing has happened yet. As a result, pressure is building from lawmakers on both sides to take action.
Back in 2022, Lamont and state leaders paused the 25-cent gas tax for most of the year. That break did not apply to the 48.9-cent diesel tax.
Senate Dems would let Lamont suspend the gas tax immediately using an emergency fund for federal cuts
Lamont proposed using a different pot of money earmarked for rebate checks
Either way, House Speaker @MattRitterCT is lukewarm to giving out-of-state drivers a tax break pic.twitter.com/v7W9g3zziw
— John Craven (@johncraven1) March 25, 2026
New York
In New York, lawmakers are pushing hard for a tax break.
A group of legislators is calling on Gov. Kathy Hochul to roll out a fuel tax holiday. The tax break would apply to gas and diesel.
In a letter to the governor, they said rising fuel prices – driven by the war in Iran – are hitting families and businesses hard.
“A gas tax holiday, whether with triggers tied to price at the pump or a specific timeline, would be a tremendous help to people struggling to afford their daily commutes, visits to family, and business expenses,” the letter reads.
Uphill battle elsewhere
Other states are feeling the pressure, too.
In Tennessee, two Democratic lawmakers are urging Republican Gov. Bill Lee to approve a 90-day tax holiday.
In Virginia, Republican lawmakers are pushing Democrats – who control the legislature – to do the same.
And in California, a bill introduced early this year would slam the brakes on fuel taxes for an entire year.
The state gas tax sits at 61.2 cents per gallon. Diesel is 46.6 cents.
AB1745 remains in a committee. LL
More Land Line coverage of state news is available.
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