Gas Tax Holidays 2026: Which States Are Cutting Your Price at the Pump?

With gas prices crossing $4.00/gallon nationally, several states have taken action to give drivers relief at the pump. Gas tax holidays — temporary suspensions or reductions of state fuel excise taxes — have been activated in three states so far in 2026, with more than a dozen others considering similar measures.

Here is what is active, what is pending, and how much you actually save.

Active Gas Tax Holidays (April 2026)

State	Type of Relief	Savings Per Gallon	End Date
Georgia	Full gas tax suspension	~31.2¢/gallon	May 19, 2026
Indiana	Gas tax suspension	~35¢/gallon	May 8, 2026
Utah	15% gas tax reduction	~5.3¢/gallon	December 31, 2026

Georgia

Georgia was the first state to act in 2026, suspending its motor fuel excise tax as gas prices surged past $4.00 statewide. Georgia's gas tax rate is approximately 31.2 cents per gallon, so drivers filling a 14-gallon tank save about $4.37 per fill-up.

For a gig driver filling up twice a week, that is roughly $35 per month in savings while the suspension lasts. The holiday is currently set to expire May 19, but Georgia has extended gas tax holidays multiple times in previous years when prices stayed high.

Indiana

Indiana suspended its gas tax through May 8, 2026. Indiana's combined state gas tax rate is approximately 35 cents per gallon, making the savings slightly higher than Georgia — about $4.90 per fill-up on a 14-gallon tank.

Utah

Utah took a different approach with a 15% reduction in its gas tax rate rather than a full suspension. Utah's gas tax is approximately 35.4 cents/gallon, so the 15% reduction saves about 5.3 cents per gallon. The reduction runs through the end of 2026 — significantly longer than Georgia or Indiana's short-term holidays.

Proposed Federal Gas Tax Holiday

The Gas Prices Relief Act has been introduced in Congress with bipartisan support. If enacted, it would suspend the federal gas excise tax:

• Gasoline: 18.3 cents per gallon suspended
• Diesel: 24.3 cents per gallon suspended
• Duration: Through October 1, 2026

Combined with a state gas tax holiday, the total savings could be substantial. A Georgia driver, for example, would save 31.2¢ (state) + 18.3¢ (federal) = 49.5 cents per gallon, or about $6.93 per fill-up.

As of April 2026, the federal gas tax holiday has not been signed into law. We will update this guide if it passes.

States Considering Gas Tax Relief

More than a dozen states have introduced or are considering gas tax holiday legislation in 2026:

• Pennsylvania — Has one of the highest state gas taxes at 58.7¢/gallon. Relief proposals are active.
• California — Gas above $5.90/gallon. Governor and legislators have discussed temporary relief.
• South Carolina — Proposals to suspend its 28.75¢/gallon gas tax
• Alabama — Gas tax holiday under consideration
• Arizona — Relief proposals introduced
• Connecticut — Previous gas tax holidays in 2022; new proposals in 2026
• Florida — Had a gas tax holiday in 2022; considering another
• Maryland — Previous gas tax holiday in 2022; 2026 proposals active
• New York — Relief legislation proposed

Check your state legislature for the latest status. Gas tax holidays can be enacted quickly when political pressure builds.

How Much Do You Actually Save?

Let us put real numbers to it. Assume you are a gig driver filling up twice a week with a 14-gallon tank:

Scenario	Savings Per Fill-Up	Monthly Savings	Annual Savings
Georgia holiday (31.2¢/gal)	$4.37	$34.96	$227 (if extended)
Indiana holiday (35¢/gal)	$4.90	$39.20	N/A (short-term)
Utah reduction (5.3¢/gal)	$0.74	$5.92	$38.48
Federal (if passed, 18.3¢/gal)	$2.56	$20.48	$133 (through Oct)
Georgia + Federal combined	$6.93	$55.44	$360 (if extended)

These are meaningful savings — but they are a fraction of what you can save through tax deductions. A driver logging 20,000 business miles at the 72.5-cent mileage rate gets a $14,500 deduction, which saves $3,625 in taxes at a 25% rate. The gas tax holiday is worth $35/month; the tax deduction is worth $300/month.

Do Gas Tax Holidays Affect Your Tax Deduction?

It depends on which deduction method you use:

Standard Mileage Rate

No impact. Your deduction is based on miles driven, not gas cost. The mileage rate is set once per year by the IRS and does not change based on gas tax holidays.

Actual Expense Method

Minimal impact. During a gas tax holiday, you pay slightly less per gallon, which means your gas receipts show slightly lower totals. This marginally reduces your deductible expense. But the net result is still positive — you are paying less out of pocket even though your deduction is slightly smaller.

Either way, track every fill-up. Whether you use the mileage rate or actual expenses, having complete gas receipt records is critical for your Schedule C deduction. FuelSnap scans your receipt in five seconds and stores the data permanently — so you are covered at tax time regardless of which method you choose.

How to Maximize Savings

1. Fill up in holiday states if you are near a border — If you drive near the Georgia/Alabama or Indiana/Illinois border, filling up on the holiday side saves 30+ cents per gallon
2. Stack with cashback apps — Use Upside or similar apps on top of the tax holiday for an additional 5-25 cents per gallon off
3. Track receipts during and after the holiday — When the holiday ends and prices jump back up, your actual expenses will look different. Having clean records for the full year matters.
4. Claim your tax deduction — The gas tax holiday saves you cents. The gas tax deduction saves you thousands. Do both.

Stay Updated

Gas tax holidays can be extended, shortened, or enacted on short notice. We will update this guide as new states announce relief programs and as the federal proposal moves through Congress.

In the meantime, focus on what you can control: track every gas receipt, maintain your mileage log, and make sure you are claiming every deduction available to you. The tax savings dwarf any gas tax holiday — but there is no reason not to take advantage of both.