Fuel taxes are always changing – and drivers are feeling it.
In just one year, more than a dozen states changed gas tax and diesel tax rates. Some raised taxes. Others cut them.
Now, new fuel tax relief plans are popping up across the country.
Georgia fuel tax holiday
Georgia just hit pause on fuel taxes – again.
The state usually charges 33.3 cents per gallon for gas and 37.3 cents per gallon for diesel.
Gov. Brian Kemp signed a bill to suspend the state’s fuel tax collection. This suspension is part of a larger tax package that includes refunds on state income taxes.
Georgia last implemented a fuel tax holiday in the fall of 2023.
At that time, Kemp said the emergency declaration was necessary due to persistently high prices and economic uncertainty resulting from failed policies in Washington, D.C.
The current measure suspends the gas and diesel taxes for 60 days.
TruckMiles indicates that the current average diesel price in Georgia is $5.13.
House Speaker Jon Burns said the tax suspension in HB1199 “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.
Governor Kemp to Sign Income and Gas Tax Relief Bills https://t.co/fLozGwqZpQ
— Governor Brian P. Kemp (@GovKemp) March 20, 2026
IFTA fuel tax break for truckers
The Georgia Motor Fuel Unit is exempting motor carriers licensed under the International Fuel Tax Agreement and traveling in Georgia from fuel taxes during the suspension period.
During the tax holiday, motor carriers can buy qualifying motor fuel without paying taxes. They can also travel miles within the state that are not taxed. IFTA returns still need to be filed for the quarters that include this tax-free period.
A notice from the state asks truck drivers to “please ensure that all fuel purchases are reported on IFTA returns to accurately reflect your miles per gallon for the suspension period.” Reports should include both tax-free and tax-paid fuel purchases.
All miles traveled in Georgia from March 20 through May 19 should be reported as non-IFTA miles.
Additional information from the state is available.
Arizona fuel tax relief plans
Arizona lawmakers are debating new fuel tax cuts.
The state collects an 18-cent-per-gallon tax on gasoline. Diesel is taxed at 26 cents per gallon.
A Senate committee is scheduled to review a bill on the topic this week. HB2400 would suspend gas and diesel taxes for six months each year in the Phoenix area.
House lawmakers already approved the bill to suspend fuel taxes in Maricopa County and parts of Pinal County from May to October.
Rep. Julie Willoughby, R-Chandler, said the move would help offset federal rules that require a special fuel blend in warmer months – a blend that costs more.
She warns prices could rise even more if fuel supply tightens.
The plan would shift millions in highway funds to help offset the fuel tax break.
More states watching fuel prices
Rising fuel costs – tied to the war in the Middle East – are pushing more states to consider taking action.
In Indiana, Gov. Mike Braun said he is monitoring the situation closely. He mentioned that if fuel prices stay above the average for too long, the state might step in to ease some of the burden at the pump.
In mid-2022, then-Gov. Eric Holcomb signed a bill that capped Indiana’s 7% sales tax on gas. The tax remained at 29.5 cents per gallon through June 2023.
The excise tax on gas and diesel remained the same.
In Connecticut, Gov. Ned Lamont has proposed a fuel tax holiday. The current average price for diesel in the state is $5.69.
In 2022, Lamont and legislative leaders took steps to suspend the state’s 25-cent gas tax. This tax holiday was in place for most of the year.
At that time, suspending the gas tax cost the state an estimated $30 million per month. However, the tax holiday did not apply to the diesel excise tax. LL
More Land Line coverage of state news is available.
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