Gas Tax Holiday: These 17 States Are Working on Legislation To Ease Costs at the Pump

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In an effort to reduce the burden of high gas prices, many states are considering implementing a gas tax holiday or offering drivers a rebate on their fuel costs. In California, Governor Newsom proposed last Thursday, Mar. 17, that all California drivers should receive a $400 gas rebate. NBC News Los Angeles reported that the money would “more than cover a full year of California’s gas tax.”

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Other states, however, are contemplating pausing the gas tax until fuel prices begin to drop, while some have already taken action to do so. Is your state on the list?

Maryland

On Friday, March 18, 2022, the Maryland legislature voted to suspend its 36-cents-per-gallon gas tax for 30 days, the Washington Post reported. Lawmakers are urging gas station proprietors to pass that savings onto their customers. A Maryland driver with a 12-gallon tank would save roughly $4.32 per fill-up.

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Georgia

Similarly, Georgia Governor Brian Kemp and state legislators passed a gas tax holiday in Georgia to run through the end of May, The Hill reported. This should especially provide relief to travelers during the Memorial Day weekend, as well as those traveling for spring break. “In the coming days, the suspension of the 29.1 cent tax on motor fuel and 32.6 cent tax on diesel will make its way to the consumer,” Kemp tweeted on Friday.

Alabama

Legislators will vote on a suspension of the state excise taxes of 28 cents per gallon between May 1 and September 1. However, the gas tax holiday will be lifted if the average monthly gas price drops below the average price from January 2022.

Alaska

Governor Mike Dunleavy has introduced the most generous legislation, in the state with the lowest gas tax. Under his plan, the state would halt the 8-cents-per-galllon fuel tax through June 2023.

Connecticut

Governor Ned Lamont proposed last week to pause Connecticut’s 25-cents-per-gallon excise tax through Jun. 30. He is aiming to have the legislation passed as quickly as possible, NBC Connecticut reported. It would cost the state roughly $100 million, out of the $180 million the state has budgeted for tax relief.

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Idaho

Lawmakers are proposing to pause the state’s hefty gas tax of 33 cents per gallon for two years.

Maine

Maine legislators have several proposals in the works to reduce the cost burden at the pump for Maine drivers. Maine collects 30 cents per gallon for regular fuel and roughly 31 cents per gallon for diesel. Former governor Paul LePage is calling to cut the gas tax by at least 50% for the coming months. Meanwhile, lawmaker Lauren Libby proposed a bill suspending the gas tax through the end of the year, according to MainePublic.org.

Minnesota

Even before oil prices spiked with the Russian invasion of the Ukraine, Minnesota lawmakers had proposed a gas tax holiday to run from Memorial Day to Labor Day, local news site KARE11.com reported.

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Michigan

Legislation was introduced to pause the state gas tax of 27.2 cents per gallon for six months, according to The Hill, but Governor Gretchen Whitmer has threatened to veto the bill.

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Mississippi

On Monday, Mar. 14, Lt. Gov Delbert Hosemann proposed a six-month gas tax holiday, potentially saving drivers as much as 18.4 cents per gallon at the pump. The proposal is part of a larger tax bill currently under debate, according to U.S. News & World Report.

Missouri

Just days after the Russian invasion of the Ukraine, Missouri state representative Adam Schwardon propososed a six-month tax holiday to alleviate the burden of rising gas prices, according to KY3.com.

New York

Lawmakers have proposed to reduce the state’s gas tax by 16 cents, roughly one-half of the 33 cents currently imposed. If passed, the gas tax holiday would go into effect May 1 and last through the end of the year, according to Syracuse.com.

New Jersey

New Jersey lawmakers have considered pausing the 42-cent-per-gallon state gas tax. However, in lieu of a gas tax holiday, Senator Edward Durr proposed a fully refundable $500 tax credit to New Jersey families earning less than $250,000. New Jersey taxpayers could claim the credit on their 2021 state tax returns.

Ohio

Legislation in Ohio seeks to reduce the state’s gas tax from 38.5 cents to 28 cents per gallon, Cleveland.com reported.

Pennsylvania

Governor Tom Wolf was among the first governors to propose reducing or waiving the federal gas tax. Legislation has also been introduced at the state level to reduce or pause Pennsylvania’s hefty 57-cent-per-gallon state tax, according to WPXI.com.


Rhode Island

Rhode Island legislators are considering pausing the 34-cent-per-gallon gas tax through the end of 2022, reported local NBC affiliate Turnto10.com.


Virginia

Virginia state legislature is in a gridlock over a bill that would pause the state’s gas tax of 26.2 cents for gasoline and 27 cents for diesel, beginning in May and spanning through the end of July. The tax would be phased back into effect through August and September, according to the governor’s office, as reported by ABC News affiliate WJLA.com.

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The possibility still stands for a federal gas tax holiday, as well, which would save drivers 18.4 cents per gallon for regular gasoline and 24.4 cents per gallon of diesel.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.
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