Gas prices are still skyrocketing across the country, leading legislatures in some states to consider pumping the brakes on gas taxes. Nationwide, drivers are paying more than a dollar per gallon more than they were at the start of 2026. Price increases also seem to be accelerating, with gas prices increasing by over 90 cents in many states in March 2026 alone.
Lawmakers in Connecticut, Pennsylvania, and California have all called for a freeze on state gas tax collection. Connecticut is pushing for a one-month freeze, and Pennsylvania State Senator Lisa Boscola is calling for a 60-day tax suspension. California has not seen a potential bill yet, but local leaders and political candidates are calling for tax freezes as prices near $6 a gallon.
While freezes or pull-backs are being pushed in those states, the only jurisdiction to freeze gas tax collection so far is Georgia. Governor Brian Kemp suspended state gas tax collection for 60 days from March 20 due to the recent rise in fuel costs. The legislation saves drivers 33.3 cents per gallon on gasoline and 37.3 cents per gallon on diesel.
On a federal level, some lawmakers are pushing a bill called the “Gas Prices Relief Act of 2026,” which would suspend the collection of the federal gas tax (currently 18.4 cents per gallon) until October 2026. At the time of writing, the bill is in committee and has not yet reached the House or Senate.
Both Maryland and Florida have rejected proposals to freeze gas tax collections. In Maryland, Governor Wes Moore and the state’s legislative minority shot a bill that would have suspended gas tax collection for 30 days down. The governor cited the estimated $100 million budget shortfall the proposal would have created. While the Maryland bill was proposed by Republicans, state Democrats proposed a similar freeze in Florida, only for Governor Ron DeSantis to kill it in a similar fashion. DeSantis claims that retail fuel prices would absorb the tax difference rather than passing the savings on to customers.
While many states are calling for a freeze on gas taxes, others are raising theirs. Oregon had a scheduled 6-cent-per-gallon gas tax increase planned for January, but it was put on hold due to a pending referendum in November 2026. Other states went ahead with increases, and one even has a price hike scheduled despite the recent rise in gas prices.
Some states have raised gas taxes, and another rise is planned
Despite the rise in oil prices and calls to freeze fuel tax, several states have increased gas taxes since the start of 2026. Michigan, which is historically America’s automotive heartland, slapped a staggering 5.2 cents per gallon excise tax on all fuel.
New Jersey, which historically has had pretty low gas prices, especially compared to neighbors like New York and Pennsylvania, also raised gasoline taxes by 4.2 cents per gallon. The New Jersey price hike occurred to “meet statutory transportation funding targets outlined in 2024 legislation.”
Florida, Minnesota, Georgia, and North Carolina all technically bumped gas taxes, too. Though these were pre-planned a while ago or tied to inflation, and were pretty minor, with most increases coming in at around a cent per gallon. Plus, as we’ve mentioned, Georgia has frozen all gas tax collections at this time.
However, one state is pushing ahead with a pretty significant increase in its gas taxes. Indiana is bumping its “gasoline use tax” up to around 17.2 cents per gallon. This is a 2.1-cent-per-gallon increase on current rates.
The tax essentially functions as a sales tax on gasoline and is set monthly by the Indiana Department of Revenue. If you think 17.2 cents per gallon seems hefty, buckle up. It’s not all the citizens of Indiana pay when heading to the pump. Tax burdens in the state include a fixed 36-cent per-gallon excise tax on all fuel, which is set annually in July. Federal taxes, currently 18.4 cents per gallon, are also added. In total, that means Indiana residents pay 71.6 cents per gallon in fuel tax.
While that may sound rough, Indiana is only the fifth-most-expensive state in the country for gas taxes. Ahead of it is Pennsylvania, which charges 77.1 cents per gallon in tax, Washington at 77.4 cents per gallon, Illinois at 84.8 cents per gallon, and to the surprise of absolutely no one, California takes the top spot with a charge of 89.3 cents per gallon.
It’s enough to make you want to switch to a hybrid. Or at least find one of the more economical gas-powered cars if batteries aren’t your thing.
