2026 Legislative Session Dates
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Key Takeaways:

  • Georgia became the first state in 2026 to implement a Georgia gas tax suspension, saving residents nearly $400 million over 60 days through House Bill 1199. The suspension runs until May 18th and temporarily eliminates the state's $0.333 per gallon tax on regular gas and $0.373 per gallon tax on diesel.
  • State gas tax holiday 2026 proposals are gaining bipartisan support across the country, with lawmakers in Pennsylvania, California, and South Carolina introducing fuel tax relief legislation in response to gas prices that have jumped over $1 per gallon in the past month.
  • Some governors remain skeptical about the effectiveness of temporary tax suspensions, with New York's Kathy Hochul pointing to the limited impact of the 2022 gas tax holiday and Florida's Ron DeSantis questioning whether savings would be offset by further price increases.
  • Budget concerns are preventing some states from moving forward, as Maryland Governor Wes Moore noted that a 30-day suspension would create a $100 million gap in the state's transportation budget while officials work to address existing fiscal shortfalls.


With Governor Brian Kemp’s (R) signature, Georgia became the first state this year to suspend the gas tax. In a press release, House Speaker Jon Burns (R) was quoted, “Today’s suspension of the state gas tax enabled by House Bill 1199 will save hardworking Georgians and the truckers who keep our state moving nearly $400 million over the next 60 days to help ease the pressure of high costs at the pump.” Currently, the state’s gas tax is $0.333 per gallon and $0.373 per gallon for diesel. The enacted bill will suspend the gas tax until May 18th.

On average, the price of regular gas has increased by $1.008 per gallon compared to last month as of this writing. Implementing a gas tax holiday, where the state temporarily suspends the tax on fuel, is one of the few ways that states can address the increasing costs of gas. Lawmakers commonly turn to a gas tax holiday when prices increase drastically. For instance, some states imposed tax holidays following the Russian invasion of Ukraine in 2022.

Bipartisan State Support for Gas Tax Suspension Grows

Both Democratic and Republican lawmakers are turning to a tax holiday. In Pennsylvania, Senator Lisa Boscola (D) and Senator Abby Major (R) have said they plan on introducing legislation to suspend the tax. Fellow Pennsylvania senator Doug Mastriano (R) also supports a gas tax holiday, arguing that it would “provide immediate breathing room to families already stretched thin…stabilize small businesses facing rising transportation costs…support farmers working to sustain food production and truckers working to keep supply chains moving.”


Connecticut Governor Ned Lamont (D) has proposed suspending the gas tax, but the idea has not gained traction. Additionally, California policymakers amended CA AB 2722 to impose a gas tax holiday for one year. South Carolina has introduced several resolutions to suspend user fees on gasoline, such as SC SJR 1045.

Gubernatorial Opposition Highlights Effectiveness and Budget Concerns

However, some governors have doubts about the effectiveness and fiscal impact of gas tax holidays.

Questions About Gas Tax Holiday Effectiveness

New York governor Kathy Hochul (D) did not shoot down the idea of a gas tax holiday, but pointed to the ineffectiveness of the tax holiday implemented in 2022. Likewise, Florida governor Ron DeSantis (R) questioned the usefulness of imposing a gas tax holiday because gas prices may increase further and undo any savings motorists would have felt anyway.

Budget Constraints Drive Opposition to Tax Suspension

Some states, however, are already facing budgetary strain and are concerned with forgoing any revenue. Maryland governor Wes Moore (D), through a spokesperson, specifically cited the state’s fiscal position when blasting the idea of a gas tax holiday: “Marylanders need real relief, not a 30-day gas tax suspension that would blow a $100 million hole in our transportation budget while we’re working to close Maryland’s budget shortfall.”

Track and Influence State Tax Policy

Tax policy can be one of the most challenging areas for government affairs executives. MultiState’s team understands the issues, knows the key players, and helps you effectively navigate and engage. We offer a customized, strategic solution to help you develop and execute a proactive multistate tax legislative agenda. Learn more about our Tax Policy Practice.