Gas Tax Holiday 2026: The national average price of gasoline climbed to $4.28 a gallon on September 10, according to AAA’s daily tracker, up 13 cents in a single week as crude oil pushed back toward $100 a barrel on volatility in the Strait of Hormuz. That is the sharpest one-week jump of the fall driving season, and it is landing at a time when gasoline is already running roughly 25 percent higher than it was a year ago. Diesel is worse. AAA’s national average for diesel touched $5.98 a gallon this week, squeezing truckers and small delivery fleets the hardest. Against that backdrop, a handful of governors have already pulled the one lever they control directly: suspending or cutting the state’s own gas tax. This gas tax holiday 2026 tracker breaks down exactly which states are giving drivers real relief at the pump today, which relief windows have already closed, and which proposals are still stuck in committee. We’ll be updating this article monthly as governors extend, expire, or introduce new fuel tax relief.
Indiana is the only state currently running an uninterrupted gas tax suspension, and it has now stretched into its sixth consecutive month. Governor Mike Braun has kept both the state’s Gasoline Usage Tax and Gasoline Excise Tax, a combined 58.9 cents a gallon, off the books since April by repeatedly declaring new statewide energy emergencies, most recently on September 3, pushing the suspension out to October 5. Georgia and Kentucky both ran shorter gas tax suspension windows earlier in the year but let them lapse once oil prices briefly cooled, while Illinois and Utah are running narrower, statute-based cuts rather than full holidays. Meanwhile, in Washington, the Gas Prices Relief Act of 2026, introduced by Senator Mark Kelly and Congressman Chris Pappas, would suspend the federal 18.4 cents a gallon gas tax through October 1, but it has not moved out of committee. Below is the full state-by-state breakdown, current as of this week.
Key Highlights: Gas Tax Relief Status by State (September 2026)
| State | Type of Relief | Status Right Now | Amount Suspended or Cut | Current Window |
|---|---|---|---|---|
| Indiana | Full suspension (Gas Use Tax + Excise Tax) | Active | 58.9 cents/gallon combined | Through October 5, 2026 |
| Illinois | Delayed scheduled rate hike | Active | Rate frozen at early-2026 level | Through December 31, 2026 |
| Utah | Statutory rate cut (HB 575) | Active | About 15 percent, rate set at 31.9 cents/gallon | July 1 through December 31, 2026 |
| Georgia | Full suspension (HB 1199 + executive orders) | Expired | Was 33.3 cents gas / 37.3 cents diesel | Ended June 2, 2026 |
| Kentucky | Rate reduction (executive order) | Expired | Was 10 cents/gallon on gas and diesel | Ended June 30, 2026 (with local extensions) |
| Pennsylvania | Proposed suspension | Pending in legislature | Would suspend up to 58.7 cents/gallon | Not yet enacted |
| Connecticut | Proposed suspension | Pending, governor-backed | Would suspend 25 cents/gallon | Not yet enacted |
| California | Proposed relief bill (SB 1035) | Died in committee | Would have suspended state excise tax | Not moving forward |
| Federal (all states) | Gas Prices Relief Act of 2026 | Introduced, not passed | Would suspend 18.4 cents/gallon federal tax | Proposed through October 1, 2026 |
Why Are Gas Prices So High Right Now
Gas prices have been unusually volatile through 2026. The national average sat under $2.70 a gallon in late February, then rose past $4 by March as the conflict with Iran disrupted global energy markets. Prices eased through the summer before climbing again in early September on renewed tension in the Strait of Hormuz, one of the world’s busiest oil shipping corridors, along with wildfire disruptions to Canada’s Alberta oil sands region. AAA’s own weekly bulletin this week pointed directly to that volatility, noting that pump prices are now comparable to what drivers paid in early June, a season when prices typically fall rather than rise. That combination, a major shipping chokepoint under strain plus reduced Canadian output, is what has pushed several governors to reach for a state gas tax holiday as a short-term fix while Congress debates a federal version.
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States With Active Gas Tax Relief Right Now
Indiana: The Longest-Running Gas Tax Holiday in the Country
Indiana has the most aggressive and longest-running gas tax holiday of any state in 2026. Governor Mike Braun first suspended the state’s Gasoline Usage Tax in April, and has since renewed the suspension six separate times by declaring successive statewide energy emergencies, a mechanism that grants him authority to pause tax collection for up to 120 days per declaration. The Indiana Department of Revenue confirmed on September 3 that both the Gas Use Tax and Gasoline Excise Tax, worth 58.9 cents a gallon combined, will not be collected from August 7 through October 5. State officials estimate the suspensions have cost roughly $140 million a month in foregone revenue, with the state tapping its reserves rather than cutting road funding to cover the gap. The payoff for drivers has been real: Indiana had the cheapest average gas price in the country in early September, at $3.45 a gallon, nearly 17 percent below the national average.
Illinois: A Frozen Rate Hike, Not a Full Suspension
Illinois took a different approach. Under Public Act 104-0468, the state paused a scheduled motor fuel tax rate increase that was set to take effect on July 1. Instead of rising, Illinois’s motor fuel tax rate will stay at its January through June 2026 level through the end of the year. It is worth noting this is not the same as a true gas tax suspension, drivers are not paying zero tax, they are simply not paying a higher rate that was otherwise scheduled to kick in. A separate, more aggressive proposal, House Bill 5738, would suspend the state’s 6.25 percent sales tax on gasoline for six months, but that measure targets only the sales tax component and leaves the separate per-gallon motor fuel tax, currently 48.3 cents a gallon, untouched. As of this update, HB 5738 remains a proposal and has not been signed into law.
Utah: A Built-In Rate Cut That Landed at the Right Time
Utah’s relief is a little different from the other states on this list because the legislation predates the spring price spike. House Bill 575, the Fuel Tax and Supply Amendments Act, was signed into law on March 23 and applies a reduced fuel tax rate of 31.9 cents a gallon on all motor fuel sold, used, or received for use in Utah, a cut of roughly 15 percent from the standard rate. That reduced rate runs from July 1 through December 31, 2026. Because the bill was already moving through the legislature before gas prices jumped, its timing turned out to be fortunate for Utah drivers heading into a volatile fall.
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States Where Gas Tax Relief Has Already Expired
Georgia: First to Act, First to Let It Lapse
Georgia was the first state in the country to suspend its gas and diesel tax in 2026. Governor Brian Kemp signed House Bill 1199 on March 20, suspending the state’s 33.3 cents per gallon gasoline tax and 37.3 cents per gallon diesel tax, a move state leaders estimated would save Georgians close to 400 million dollars over 60 days. The original suspension was due to expire on May 19, but Kemp extended it by executive order for an additional two weeks to cover the Memorial Day travel period, pushing the end date to June 2. With oil prices holding relatively steady at the time, Kemp allowed the suspension to lapse and the tax returned on June 3, adding roughly 33 cents back onto every gallon overnight. As of this update, Georgia’s gas tax suspension has not been reinstated, even as national prices have climbed again in September.
Kentucky: A Shorter, Smaller Cut That Also Ran Out
Kentucky’s relief was more modest than Georgia’s or Indiana’s. Governor Andy Beshear declared a state of emergency on May 5 and issued an executive order cutting the state motor fuels tax by 10 cents a gallon on both gasoline and diesel, effective May 11. Beshear paired that cut with a second order freezing a scheduled rate increase that would otherwise have pushed the tax from 26.4 to 27 cents a gallon on July 1, and he activated the state’s price-gouging protections to make sure retailers actually passed the savings on to drivers. The original order was set to expire June 10, though Kentucky law allowed individual localities to request an extension, and those that did saw the cut continue through June 30. There is no indication as of this update that Kentucky’s fuel tax cut has been renewed.
States Considering a Gas Tax Holiday
A longer list of states have introduced legislation or floated proposals without actually suspending anything yet.
| State | Proposal | Who Is Pushing It | Status |
|---|---|---|---|
| Pennsylvania | Senate plan for a 60-day suspension; House plan for a six-month gas and diesel holiday | Senators Lisa Boscola, Abby Major, Doug Mastriano; House leadership | Introduced, not passed |
| Connecticut | Suspend the state’s 25 cents/gallon gas tax | Governor Ned Lamont | Proposed |
| California | SB 1035, the Gas Tax Relief Act | Senator Tony Strickland | Died in committee |
| South Carolina | Fuel tax relief legislation | State lawmakers | Introduced |
| Arizona | Fuel tax relief discussions | State lawmakers | Under discussion |
| Alabama | Fuel tax relief discussions | State lawmakers | Under discussion |
| Maryland | 30-day suspension floated, but budget concerns raised | Governor Wes Moore’s office has flagged a $100 million transportation budget gap | Not moving forward |
| New York and Florida | Gas tax holiday floated, governors skeptical | Governors Kathy Hochul and Ron DeSantis have both publicly questioned the effectiveness of a temporary holiday | Not advancing |
Pennsylvania is the most closely watched of this group because it already has one of the highest state gas taxes in the country, at 58.7 cents a gallon, meaning a suspension there would deliver one of the largest per-gallon savings of any state plan on the table. Connecticut’s proposal is also notable because it comes directly from the governor’s office rather than the legislature, though it still needs legislative approval before Connecticut drivers would see any relief at the pump.
Gas Prices Relief Act of 2026: Where the Federal Bill Stands
At the federal level, the Gas Prices Relief Act of 2026 would suspend the 18.4 cents a gallon federal gasoline excise tax through October 1, 2026. Senator Mark Kelly of Arizona and Senator Richard Blumenthal of Connecticut introduced the bill in the Senate in March, with Congressman Chris Pappas of New Hampshire introducing a companion bill in the House. The legislation would also require the Treasury Department to transfer funds from the general fund into the Highway Trust Fund to offset the lost gas tax revenue, and it includes a provision meant to hold oil and gas producers accountable if they fail to pass the tax cut along to consumers at the pump. The House version has been referred to the Ways and Means Committee, but as of this update neither chamber has brought the bill to a floor vote, and no suspension of the federal gas tax is currently in effect.
Separately, the Trump administration has floated its own federal gas tax suspension outside of the Pappas-Kelly bill. The nonpartisan Penn Wharton Budget Model modeled a hypothetical four-month federal holiday running from June 1 through October 1, 2026, and estimated it would cost the Highway Trust Fund roughly 11.5 billion dollars in lost revenue while only delivering partial relief to consumers at the pump. The Bipartisan Policy Center reached a similar conclusion in a separate analysis, estimating that a five-month federal suspension beginning in May would reduce gas and diesel tax revenue to the Highway Trust Fund by about 17 billion dollars, or 46 percent of the fund’s projected fiscal year 2026 revenue from those two taxes. Both analyses point to the same tension lawmakers are wrestling with: a federal gas tax holiday would lower prices somewhat, but it would also blow a large hole in the fund that pays for road and bridge maintenance nationwide.
How Much Drivers Actually Save
The dollar value of a gas tax holiday depends entirely on the state’s normal tax rate and how big a vehicle’s tank is. Using a standard 14-gallon fill-up as a benchmark:
| State | Tax Suspended Per Gallon | Savings on a 14-Gallon Fill-Up |
|---|---|---|
| Indiana | 58.9 cents | About $8.25 |
| Georgia (while active) | 33.3 cents (gas) | About $4.66 |
| Kentucky (while active) | 10 cents | About $1.40 |
| Utah | Roughly 5.6 cents (15 percent of standard rate) | About $0.78 |
| Pennsylvania (if enacted) | Up to 58.7 cents | About $8.22 |
| Connecticut (if enacted) | 25 cents | About $3.50 |
| Federal (if Gas Prices Relief Act passes) | 18.4 cents | About $2.58 |
Combined savings can add up for drivers in a state running an active holiday alongside a hypothetical federal suspension. A driver in a state with a 33-cent state cut, for example, would save close to 50 cents a gallon if a federal suspension were layered on top, or nearly 7 dollars on a single fill-up.
Official Government Resources for Gas Tax Relief
| Resource | What It Covers | Official Link |
|---|---|---|
| Indiana Department of Revenue, Gasoline Use Tax | Current suspension dates, FAQs | in.gov/dor |
| Georgia Department of Revenue, Motor Fuel Tax | 2026 suspension history and bulletins | dor.georgia.gov |
| Kentucky Department of Revenue | Motor fuels tax rates and executive orders | revenue.ky.gov |
| Utah State Tax Commission | HB 575 fuel tax rate details | tax.utah.gov |
| Illinois Department of Revenue | Motor fuel tax rate schedule | tax.illinois.gov |
| AAA Gas Prices | Daily state and national gas price averages | gasprices.aaa.com |
| U.S. Energy Information Administration | Weekly national gasoline and diesel price data | eia.gov |
| Congress.gov | Full text and status of the Gas Prices Relief Act of 2026 | congress.gov |
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FAQs About Gas Tax Holiday 2026
Which states currently have an active gas tax holiday?
Indiana has the only full, ongoing gas tax suspension right now, running through October 5. Illinois and Utah are also providing relief, but through a frozen rate increase and a statutory rate cut rather than a complete suspension.
Is Georgia’s gas tax suspension still active?
No. Georgia’s gas tax suspension ended on June 2, 2026, and the state’s 33.3 cents per gallon gasoline tax has been back in effect since June 3.
Did Kentucky’s gas tax cut expire?
Yes. Kentucky’s 10 cent per gallon reduction ran from May 11 through June 10, with some localities extending it through June 30. There is no active statewide cut in Kentucky at this time.
Has the federal Gas Prices Relief Act of 2026 passed?
No. The bill has been introduced in both the House and Senate but has not been voted on or signed into law. There is currently no suspension of the federal 18.4 cents per gallon gas tax.
Will Pennsylvania get a gas tax holiday?
Pennsylvania lawmakers have introduced multiple proposals, including a Senate plan for a 60-day suspension and a House plan for a six-month holiday on gas and diesel taxes, but none have passed as of this update.
How much money does a gas tax holiday actually save drivers?
Savings depend on the state’s tax rate. Indiana’s suspension saves drivers about 59 cents a gallon, or roughly 8 dollars on a 14-gallon fill-up. Smaller cuts, like Kentucky’s 10 cent reduction, save closer to a dollar and a half per fill-up.
Why are some states not suspending their gas tax?
Governors in states like New York, Florida, and Maryland have cited budget concerns and past evidence that gas tax holidays deliver limited savings to consumers, since not all of the tax cut is passed through to pump prices.
What states are giving gas relief in 2026?
Indiana, Illinois, and Utah currently have active fuel tax relief. Georgia and Kentucky ran temporary suspensions earlier in the year that have since expired.
Is there a federal gas tax holiday in 2026?
Not yet. The Gas Prices Relief Act of 2026 has been introduced in Congress but has not passed either chamber.
Why did gas prices go up in September 2026?
AAA has attributed the recent jump to volatility in the Strait of Hormuz pushing crude oil prices back toward 100 dollars a barrel, along with wildfire-related disruptions to Canadian oil sands output.
How long will Indiana’s gas tax holiday last?
Indiana’s current suspension runs through October 5, 2026. Governor Braun has extended the holiday six times so far using successive energy emergency declarations, and has indicated he will reevaluate again as the expiration date approaches.
Does a gas tax holiday actually lower prices at the pump?
Research on prior gas tax holidays, including the state suspensions in 2022, found that a majority of the tax cut is typically passed on to consumers, though not the full amount, since retailers and distributors sometimes absorb part of the benefit as margin.
Conclusion
Right now, only three states, Indiana, Illinois, and Utah, are giving drivers active fuel tax relief, and only Indiana’s is a full suspension in the truest sense of a gas tax holiday. Georgia and Kentucky both tried it earlier this year and let their relief lapse once prices briefly steadied, a reminder that these suspensions are typically short-term political tools rather than permanent fixes. With the national average back above 4 dollars and climbing again this week, pressure is building on the dozen or so states still debating proposals, and on Congress, to decide whether more relief is coming or whether drivers will simply have to wait out the current price spike. This page will be updated monthly as new states act, existing suspensions expire, or the Gas Prices Relief Act of 2026 moves through Congress.
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