Four States Have Paused Gas Taxes, With Breaks Ending Nov. 30 to Jan. 2
- Ohio, Indiana, Georgia and North Carolina are collecting little or none of their state gasoline tax, a cut worth 33.3 cents a gallon in Georgia, 41 cents in North Carolina and nearly all of Ohio’s 38.5 cents.
- Georgia and North Carolina end their breaks on Nov. 30, Indiana on Dec. 4 and Ohio at 11:59 p.m. on Jan. 2, 2027.
- AAA’s Nov. 6 table puts North Carolina at $3.3170 and Georgia at $3.5168 against a $4.0688 national average, so check your station against your state’s average before assuming the cut reached your pump.
Four Gas Tax Breaks Are Running, With Three Different Last Days
As of Nov. 7, drivers in four states are paying a fraction of the usual state tax on every gallon, and the calendar decides how long that lasts. Georgia and North Carolina stop the suspension on Nov. 30, which is 23 days away. Indiana’s runs to Dec. 4, 27 days out. Ohio’s lasts the longest, through 11:59 p.m. on Jan. 2, 56 days from now.
The amounts differ by state. Georgia’s gasoline tax is 33.3 cents a gallon and its diesel tax 37.3 cents. North Carolina collects 41 cents on both gasoline and diesel when the law is not paused. Ohio’s standard rates are 38.5 cents for gasoline and 47 cents for diesel, and while the holiday lasts the state charges one-hundredth of one cent, or $0.0001, a gallon on each. Indiana has suspended its gasoline excise tax and its gasoline usage tax in all 92 counties under Executive Order 26-35.
On a 15-gallon fill-up the suspended tax is worth about $5.00 in Georgia, $6.15 in North Carolina and $5.77 in Ohio. Those figures are the arithmetic of the rates and assume the whole tax reaches the pump price. They also show what each fill-up can cost in extra tax the day a break lapses.
Ohio Cut 38.5 Cents to a Hundredth of a Cent Through Jan. 2
Ohio’s holiday began at 12:01 a.m. on Oct. 4 under emergency legislation Gov. Mike DeWine signed. The Ohio Department of Taxation calls it a 90-day motor fuel tax holiday, and it covers gasoline and diesel only. Compressed natural gas and any other motor fuel still pay the standard rates.
Ohio spells out a pass-through rule. “Fuel retailers are legally required under Ohio law to pass the entire tax savings directly to consumers at the pump,” the Ohio Department of Taxation says on its holiday page. A retailer that skips the pass-through risks being treated as an unfair or deceptive seller. The Ohio Attorney General’s office handles enforcement, and a driver who believes a station kept the saving can file a complaint with that office.
The changeover shows how messy a pause is behind the pump. A retailer that stocked taxed fuel before Oct. 4 and sold it at holiday prices has until March 1, 2027 to claim back the tax difference. Once the holiday closes, stock a retailer still holds, or has on the road, from the low-tax period owes the full standard rate when it sells, with payment also due by March 1.
Georgia and North Carolina Run Out on Nov. 30
Gov. Brian Kemp extended Georgia’s suspension in late October and announced it with Lt. Gov. Burt Jones and House Speaker Jon Burns. The state tax stays off through Nov. 30. The order applies to gasoline, clear diesel, gasohol, ethanol, aviation gasoline, liquid propane gas, liquefied natural gas and compressed natural gas. Cities and counties keep collecting their local sales taxes on motor fuel.
“With a major holiday coming up and fuel prices still at high levels, I am proud to take this step to keep more money in Georgians’ pockets,” Kemp said in a statement. “Our commitment to fiscal responsibility and stewarding taxpayer dollars has allowed us to act when needed, whether by suspending the gas tax or returning billions to taxpayers through income tax refunds and property tax relief. I’m grateful to our partners in the General Assembly for their support and for standing with us to budget conservatively for times such as these.” When Kemp announced the extension, state officials did not say whether it would continue into December. The earlier Georgia gas tax pause coverage on this site lists the order’s other terms.
North Carolina’s break comes from a law. Gov. Josh Stein signed it on Friday, Oct. 9, and it took effect the next day, suspending the 41-cent-a-gallon tax on gasoline and diesel until Nov. 30. The state expects the suspension to cost more than $350 million that normally goes to the Department of Transportation for road projects, and the law keeps that department whole by moving money from state savings of roughly $11 billion. The cost is about 3 percent of those savings.
“The suspension of the motor fuel excise tax applies to all motor fuels and alternative fuels subject to the North Carolina motor fuel excise tax,” the state Department of Revenue said. Attorney General Jeff Jackson put the current motor fuel excise tax at zero cents and said sales, use and inspection taxes have not changed.
“Grocery bills are going up. Power bills are going up, healthcare bills are going up, and thanks to the Trump administration’s disastrous war of choice against Iran, gas prices are sky high,” Stein said. “So when we have a chance to bring down costs for families, we need to take it.” Republican legislative leaders announced the special session behind the bill on Oct. 3, and Senate leader Phil Berger posted on social media: “They need real relief, and they need it now,” he wrote. “Years of responsible budgeting have put North Carolina in a position to provide meaningful relief when families need it most, and pausing fuel taxes is another way House Republicans are working to make our state more affordable for everyone,” House Speaker Destin Hall, R-Caldwell, said in a statement after Stein signed the bill.
Stations in North Carolina still held fuel they had bought with the tax included, so prices could take days or weeks to fall after the law took effect. North Carolina also eased a diesel rule. Before signing the law, Stein directed the Department of Revenue to stop enforcing penalties for driving on highways with red-dyed diesel, normally reserved for off-road farm and construction equipment, through Dec. 31.
Indiana Bought Another Month, Until Dec. 4
Gov. Mike Braun signed Executive Order 26-35 on Wednesday, Nov. 4. It extends Indiana’s energy emergency for 30 days, from Nov. 5 through Dec. 4, and continues the suspension of the gasoline excise tax and gasoline usage tax statewide. A companion order keeps the suspension of special fuel restrictions for farmers and timber harvesters, who can run dyed diesel in qualifying highway vehicles for that work.
“Affordability is my top priority, and I’m using every tool available to help Hoosier families and farmers save money at the pump. We’re keeping these savings for Hoosier families and farmers in place for another month while protecting funding for our roads and infrastructure,” Braun said.
Indiana gas tax money pays to build and maintain the state’s roads. The governor’s office says the highway fund at the Indiana Department of Transportation keeps every fiscal year 2027 project going and that road maintenance continues. AAA put the state’s average for regular at about $3.75 on Nov. 4, against $4.12 nationally and $2.99 a year earlier, which makes Indiana 76 cents dearer than it was last November even with the tax paused. The earlier Indiana gas tax break coverage on this site traces the run-up to the Nov. 4 decision.
Diesel drivers in Indiana should read the order closely: it names the gasoline taxes. AAA’s Nov. 6 table lists Indiana diesel at $6.6806 a gallon, the highest of the four states.
What AAA’s Prices Show, and What They Cannot Prove
AAA’s national average for regular was $4.10 on Nov. 5, down 12 cents in a week and $1.02 above the $3.0790 of a year ago. The association says that before 2026 the national average had never topped $4 in November. The least expensive markets on its Nov. 5 list begin with North Carolina at $3.34 and Georgia at $3.54, and Indiana is ninth at $3.71. Ohio does not make that list. Earlier coverage of gas prices falling from October’s record explains the national slide.
AAA’s Nov. 6 state table, set against the $4.0688 national average that day, gives these gaps for regular: North Carolina $3.3170, 75 cents under; Georgia $3.5168, 55 cents under; Indiana $3.6810, 39 cents under; Ohio $3.9134, 16 cents under. Ohio’s average sits 36 cents below Michigan’s ($4.2728), 47 cents below Pennsylvania’s ($4.3858) and 11 cents above Kentucky’s ($3.8016).
Treat those gaps as a comparison between states. They do not measure the tax cut. Texas ($3.5466, 52 cents under the national average) and Tennessee ($3.6544, 41 cents under) sit near Georgia and Indiana, and AAA’s cheapest list also names South Carolina, Louisiana, Alabama, Arkansas and Mississippi. Plenty of low prices exist outside these four states, so a low price alone does not show a tax pause at work. Georgia’s own gap has narrowed: on Oct. 24 its $3.66 average was roughly 63 cents under the national figure, and on Nov. 6 it was 55 cents under.
Diesel shows the sharper split. On Nov. 6 AAA listed diesel at $5.4648 in North Carolina, $5.6422 in Georgia, $6.3567 in Ohio and $6.6806 in Indiana. Indiana’s diesel sits about $1.04 above Georgia’s. Georgia suspends its 37.3-cent diesel tax and Indiana’s order names the gasoline taxes, but AAA’s table does not say why the prices differ.
How to Plan Around the Four End Dates
Start with your own station. Look up your state on AAA’s state gas price averages page, then compare the posted price at the pump with that average and with the state next door. In Ohio, a retailer that does not pass the saving to drivers is the case the Attorney General’s complaint process covers.
Next, budget for the day the break ends. If the full rate returns at the pump on the first morning, a 15-gallon fill-up costs about $5.00 more in Georgia, $6.15 more in North Carolina and $5.77 more in Ohio, assuming the whole tax shows up in the price. North Carolina stations could take days or weeks to sell down tax-paid fuel after the cut, and no source says how quickly prices climb when the tax returns, so watch the posted price in the first days after Nov. 30, Dec. 4 and Jan. 2 and adjust.
Filling up before an end date locks in that day’s price for the gallons in your tank and nothing more; the rest of your driving is priced at whatever comes after. Dates can move: Braun extended Indiana’s break on Nov. 4 and Kemp extended Georgia’s in late October, while no official has announced a decision beyond the dates above. Recheck the date in your state a few days before it arrives, and treat everything here as the position on Nov. 7.
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Sources
- Ohio Department of Taxation: Ohio Motor Fuel Tax Holiday, Information for Consumers & Businesses
- AAA Fuel Prices: State Gas Price Averages
- AAA Fuel Prices: National Average Falls 12 Cents in One Week
- Transport Topics: Diesel tax suspensions cut fuel costs in 3 states
Reviewed by Preetam Gadekar