Some States Suspending Gas Sales Tax to Ease Consumer Cash Flow

Several states are temporarily suspending gas taxes to alleviate the financial strain of inflation on residents, offering relief at the pump but raising questions about long-term infrastructure funding.

Elizabeth Delaney

Updated Apr 13, 2026

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Some States Suspending Gas Sales Tax to Ease Consumer Cash Flow

A few states are recognizing the difficulty that many Americans are having with inflation and how it’s negatively impacting their cost of living. Some state representatives are temporarily removing the gas tax as a way to lower the overall price of gas in an effort to at least soften what they fear is a looming recession.

States Extending Gas Sales Tax Holiday

All states have some sort of gas tax, but the amount of that tax varies from state to state. Indiana is one state that is suspending its gas tax. The thirty-day event means that residents will save 7 percent at the pump, which totals about 17 cents per gallon. Governor Mike Braun began the tax relief effort on Wednesday, noting that he may decide to extend it beyond thirty days, according to WNG.

Another state receiving a gas tax holiday is Georgia’s Governor Brian Kemp. He signed House Bill (HB) 1199 into law last month, which includes a tax holiday on diesel fuel, according to Georgia’s Department of Revenue. The sixty-day relief effort will save motorists 33 cents on the gallon for regular and mid-grade gas, and 37 cents per gallon for diesel, according to Inc.com.

One more state that made the news regarding implementing a gas tax holiday is Utah. Governor Spencer Cox signed a bill into law in February that would begin the gas tax holiday in July. It will reduce Utah’s gas tax by 15 percent, according to his Instagram page. Utah’s gas tax holiday will run through December, according to Stateline.

In spite of the effort being put forth to ease the present financial hardship on many American families, the reality is that for a household making around $53,000 per year, the average amount of savings families will see over the course of a month totals about $5 dollars, according to Stateline.

Anticipated Impact of Gas Sales Tax Holiday and Inflation

Some of the infrastructure that could be impacted by the gas tax holiday includes road maintenance, repair of highways, construction, and mass transit. Possible solutions to make up the difference for the loss of revenue from the gas tax holiday could include increases for tolls on toll roads and raising registration fees for electric vehicles, according to the Tax Policy Center.

In addition, the expectation regarding the Consumer Price Index (CPI) is that the United States is experiencing the highest inflation rate since May 2024.

“The impact of the war on energy prices will push headline CPI inflation well above 3% in March and above 4% by April,” Oxford Economics forecast in a report picked up by CBS on Wednesday.

Higher oil prices tend to contribute to inflation since the cost of oil makes up approximately half of the price of gasoline. However, the core CPI index excludes energy and food prices because those prices are more unstable, according to Investopedia.

Another element playing into the struggles of many American families right now is that pay raises have slowed to the 2021 pace.

“With the recent uptick in inflation driven by energy prices, real wage growth is likely to decelerate further, putting increased pressure on consumers,” Thrivent’s chief financial and investment officer, David Royal, told NBC.

Knoxville Church Holds Gas Outreach Event

The Midwest and the South are being hit especially hard by price increases in gas, according to The Hill. So as a way to bring some relief to people in their community, Overcoming Believers Church in Knoxville held an outreach in which they gave $20 dollars in gas away to people in the community, according to WATE.

As people waited in line, members of the church would testify about what God had done for them. When it came time for someone’s vehicle to receive gas, the members of the church pumped the gas and invited them to church. By the end of the one-day event that took place the day before Easter, the church had given away $10,000 in gas. That money was donated by both church members and non-members.

“When we think about the significance of this weekend and really how Christ sacrificed so that we could have life, and gave us so many, I mean His entire life was a testament to how we should live,” Star Starks, the church’s director of service, told WATE. “And the Word says, ‘Whatever you do for the least of these you do for me,’ and so we want to make sure we’re doing everything we can to serve within this community.”

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Elizabeth Delaney Author Headshot Elizabeth Delaney has been a freelance content writer for over 20 years and has enjoyed having her prose published in both the non-fiction and fiction markets. She has written various types of content, including Christian articles, healthy lifestyle, blog posts, business topics, news articles, product descriptions, and some fiction. She is also a singer-songwriter-musician. When she is not busy with writing or music, she enjoys spending time with friends or family and doing fun social activities such as hiking, swing dancing, concerts, and other activities.