Georgia Gas Tax Suspension and $1.2B Rebates: How Much You Could Save
A temporary suspension of the state gas tax comes alongside a one-time income tax rebate to help residents manage costs.
Georgia drivers will soon see some relief at the pump after state lawmakers approved a 60-day suspension of the state’s motor fuel tax.
The measure, expected to be signed into law by Gov. Brian Kemp today, will reduce prices by roughly 33 cents per gallon of gasoline and about 37 cents per gallon of diesel, once fuel distributors adjust prices.
The bipartisan legislation comes as high gas prices continue to weigh on household budgets across the state. Global energy disruptions due to the United States conflict with Iran, inflation, and supply chain pressures are among the reasons cited for the emergency relief.
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Meanwhile, Georgia will once again send one-time tax rebates to eligible residents this year. Here's more of what you need to know about both types of tax relief.
Georgia gas tax suspension: What it means for drivers
According to AAA, the average cost of a gallon of regular gas in Georgia as of March 20 is roughly $3.79, lower than the national average of $3.91.
(The gas tax in Georgia is 33.3 cents per gallon of regular gasoline and 37.3 cents per gallon of diesel fuel.)
- The suspension applies only to the state portion of the motor fuel tax. Federal and local taxes remain in effect.
- Fuel distributors are expected to pass savings onto drivers within days of the governor signing the bill.
- The relief is intended as a short-term measure.
“By suspending the state motor fuel tax for 60 days, we are delivering meaningful, timely relief to millions of Georgia drivers and families when and where it’s needed most," said Republican Speaker of the Georgia House of Representatives, Jon Burns of Newington.
A driver filling a standard 15-gallon tank in Georgia could save approximately $5 per gasoline fill-up, slightly more for diesel.
Georgia tax rebate 2026 coming soon
This gas tax suspension complements Georgia’s one-time income tax rebates for 2026, which, as Kiplinger has reported, are designed to provide further support for households.
This isn't the first time Georgia has offered similar rebates to its residents.
"We’ve been able to do it four times, and we’ve been able to do it because we’ve been very fiscally conservative with our budgeting," state Sen. Bo Hatchett (R-Cornelia) told reporters.
For 2026:
- Rebate amounts: Up to $500 for joint filers, $375 for heads of household, and $250 for single filers.
- Eligibility: Based on residents’ 2024 and 2025 Georgia tax returns.
- Timeline: Rebates will be distributed later this year by the Georgia Department of Revenue.
For more details on who qualifies and how much residents may receive, see our report: Georgia Tax Rebate 2026 Guide.
Georgia tax relief: Bottom line
With fuel prices rising, the gas tax suspension is part of a broader strategy to balance fiscal responsibility with household support.
Consumer advocacy groups have generally welcomed the legislation as a proactive step to address immediate cost pressures, especially for low- and middle-income households.
Next steps for residents?
- Gas prices should begin to reflect the suspension not long after the governor signs the bill.
- Tax rebates will be processed later in the year; residents can monitor updates from the Georgia Department of Revenue.
Keep an eye on the prices at the pump and any rebate announcements so you can benefit from both programs.
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