2022 Federal and State Gas Tax Relief Holiday To Support Drivers Dealing With High Fuel prices – Updates and Latest News 

Gas prices have reached multi-year highs as anyone who drives or uses a car can attest to. Along with high inflation, soaring gas prices are now part of the daily zeitgeist.

Soaring Gas prices and Tax Breaks or Stimulus Support

Energy and basic living expenses (like food and shelter), make up 30% to 60% of most households expenditures, so clearly this is a hot button topic. Which is why government leaders have to respond, or else face some pretty angry constituents.

Unfortunately it looks like increased demand and supply constraints will continue to create upward pressure gas prices for the foreseeable future.

Most experts are now predicting prices won’t start falling until after September (Labor day) and until then the measures discussed below are the best forms of gas prices relief available to consumers.

State Governments responding to high gas prices

As gas prices continue to rise pressure is ratcheting up on government leaders to do more. While many state governments are extending or providing gas tax relief, this is not slowing the increase in gas prices which are subject to global factors.

And respond they have. From California to New Jersey and from Maine to Florida, state governors and leaders are now putting forward or have instituted direct gas relief stimulus payments, tax breaks/refunds or gas tax exemptions/holidays to help their state’s residents and business cope with rising gas prices.

Below is a list of what is being proposed, implemented or available now in various states.

It looks like gas tax holidays are the most popular initial option, with nearly 18 states temporarily pausing or lowering gas taxes as a way to combat soaring gas prices at the pump. You can see the table below for more details.

Most of the current actions are being done on a state-by-state basis where the average state gas tax is about 39 cents per gallon.

Federal Gas Rebate Act of 2022 (Gas Stimulus Check)

President Biden has recently indicated he is supported of a temporary federal gas tax exemption, which would be worth around 18 cents per gallon (or 24 cents for diesel) based on current federal gas tax rates.

Gas taxes are used to fund transportation infrastructure across the country.

However Democratic law makers are pushing for the Biden administration to do a stimulus check instead of providing gas tax relief, because they believe a gas tax rebate will benefit gas tax companies more than drivers. Republicans not surprisingly have the opposite view.

Three Congressional Democrat representatives, have introduced the Gas Rebate Act of 2022 which would send a rebate (or a gas stimulus check) to households worth $100 a month for each adult and $100 to each qualified dependent through the end of the year.

The rebate, however, would only be sent to households living in areas where the average price of the gallon is above $4.00.

While the passage of the above stimulus program is far from certain, as gas prices rise I expect direct stimulus payments, as California is proposing, to come more into the discussion given the popularity of past stimulus check payments.

Feel free to leave a comment below if I have missed any and I will continue updating this table regularly.

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State Gas Tax Relief and Proposals

StateGas Prices Relief BenefitStatus
California– Up to $800 refund for gas taxes or $400 per registered vehicle
– 3 months of free public transportation
Proposed
ConnecticutGas tax suspension (25c p/gallon benefit) from April until June 2022Passed
FloridaCut or lower gas tax (25.3c p/gallon benefit) from October – though push is to start this in JulyProposed
GeorgiaTemporarily suspended state gas taxes (29.1c p/gallon benefit) through May 31stPassed
MaineCut or lower gas taxesProposed
MarylandSuspended state gas taxes (36.1c p/gallon benefit) for 30 daysPassed
MassachusettsCut or lower gas taxesProposed
MichiganTemporarily lower state gas taxes (27c p/gallon benefit)Proposed
MinnesotaTemporary discount of 28.5 cents per gallon by suspending state’s gas tax between Memorial Day and Labor DayProposed
New HampshireCut or Lower gas taxesProposed
New Jersey– Gas state tax holiday for 60 days (27.9c p/gallon benefit)
– $500 tax credit for lower income families.
Proposed
New YorkSuspend gas taxes (16-cents-per-gallon) from June 1 through December 31Passed
North CarolinaSenate Democrats are pushing for a $200 gas tax rebate until October 2022Proposed
OhioAlong with Kentucky (25c p/g) and Indiana (24c p/g), Ohio (38c p/g) have no gas tax holiday bills under considerationNo Bills
Virginia Tax holiday (26.2c p/gallon benefit) to run from May through JulyDid not Pass
West Virginia30-day suspension of the 35.7 cent a gallon gas taxProposed

Retroactive Stimulus Payments

Note that many of the above provisions may struggle to get passed given many state and federal Republicans are pushing back against additional stimulus checks due to the risk of further stoking inflation.

However if they do get passed payments will be made retroactively, likely based on recent tax filings. So make sure you file a recent tax return.

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16 thoughts on “2022 Federal and State Gas Tax Relief Holiday To Support Drivers Dealing With High Fuel prices – Updates and Latest News ”

  1. I am a very sick lady I am 49 years old. I have fluid on my spine and around my brain I have siezures and I have several spells of blacking out. The $841 dollar’s a month isn’t enough and after I pay my bills there’s hardly anything left to buy groceries. Why is ky always last to get a inflation check I don’t think that you are being fair

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  2. I just left a message. I’m the one that lost my husband and have the home equity loan. I forgot to tell you I live in n.y. State. Will we get a fourth stimulus check? Thanks again.

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  3. I am retired(disabled) senior. I lost my husband 4 years ago so I lost a whole other income. I was left with a huge home equity loan, because we needed a new roof, a furnace, a car, etc.so that takes a big chunk out of my social security check paying that loan. It will never be paid off in my lifetime. So anything now would be a big help. Along with all the other bills like utilities, phone , car insurance, water, taxes,etc. and who can afford food and gas. I would appreciate anything they could give us. Anything. And forget trying to get any kind of help. You have to be poverty stricken to get any kind of help. Like I said, I would appreciate any help. If they could give us at least one more stimulus check it would help so much. Thank you so much for whatever you can do to help us all.

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    • Nothing planned for Texas. Its a RED (republican) state end to end and free government money or handouts won’t be passed in the legislature there.

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  4. Every House Republican, aside from five who did not vote, did not support the bill that “prohibits any person from selling, during a proclaimed energy emergency, a consumer fuel at a price that is unconscionably excessive; and indicates that the seller is exploiting the emergency to increase prices unreasonably.”

    So much for republicans saying they care about America. All a bunch of self serving twits. Dems not far behind. The orange monkey is just making everyone dance to his tune. What a mess for the average American.

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  5. I live in Louisiana. I raise three kids by myself and with gas prices and food going up it is so hard to make it. We are doing without a lot of things. I wish Louisiana would be pushing for even a small gas check or something but so far Louisiana is not pushing for nothing to help us.

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    • I am also in Louisiana and raising 4 sons , I agree Louisiana has done nothing to help us out , if it’s not a hurricane and fema bearly helping we get nothing pushed , we sit on the bare minimum and struggle.

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  6. I live in Ohio and they are not offering anything. Everyone is suffering!! We hear some kind of relief everyday and nothing is being done . My husband is on social security and there has been nothing done for those people!! Stop playing around and put your foot down and help us out please

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  7. I live in Cherokee Iowa, The cost of fuel and grocery store items have made it impossible for an SSI recipient that is allotted$781.00 a month to get to the doctor to receive medical treatment needs or the medication required to help me live each day paying my rent, utilities, and hygiene that one needs to have to keep the clean home that I live in all the recourses here in Cherokee Iowa say they can’t render aid to me till October 2022 I have been diagnosed with anxiety, depression, epilepsy, high blood pressure, and COPD along with other’s With no support what is an individual on SSI to do. I am already skipping meals and I can’t walk to the medical Hospital or the grocery store we don’t have any public transportation. I need my Govdenerment to send me Help.

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  8. I live in North Carolina I’m on SSI I make 841 a month with all the food and gas prices we are literally starving and can’t get to the doctor I live in a double wide trailer with mold and mildew I can’t even afford to buy bleach because I pay $500 a month in rent and also pay an electric bill I have no money for toiletries or anything to clean the mold and mildew even with bleach this is been going on before covid and especially after covid can’t even drive my car there’s no insurance own it tags are bad just trying to get medication my medicine I have tried going to social services DSS trying to go everywhere to ask for help there is no help in North Carolina please somebody reach out to me and let me know what I can do for assistance I have dialed I think it’s 611 or whatever it is on my phone to get help there are no churches that everything is depleted some people are literally starving to death in the USA can’t afford my medicine right my doctor found cancer cells in my uterus I have no way to get to the doctor to have a biopsy done losing blood I had to have three blood transfusions I have all the records to show you or whoever it needs to be shown to please help us the money that you sent on the stimulus packages I’m so very grateful for but the food and gas prices are so high people that live on 841 a month has never been able to live but under poverty level please reconsider about the people on disability and people like me on SSI thank you I pray that God will allow us all to get the help that we need especially the people living in poverty literally starving food stamps went up a little not very much but I’m very grateful for what they did go up up I’m supposed to be in physical therapy 3 to 4 times a week and I can’t go because of gas and my car is basically illegal to drive thank you I hope my voice is heard the best regards Wendy

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    • Thanks for sharing Wendy and really sorry to hear your story. Like millions of Americans this is not an easy time. Contact your local congress person to see if they can connect you with some relief options.

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  9. WHY CAN PEOPLE WHO ONLY GET SSI AND DO NOT HAVE A MORGAGE NO GET ANY MONEY FROM THE NEW GOVERMENT PROGRAM I HAVE A POWER BILL FOR 597.93 AND ITS ALL DO BECAUSE I CANNOT AFFORD TO PUT WINDOWS IN MY TRAILER I HAVE HAD PLASTIC ON 6 OF MY WINDOWS FOR OVER 3 YEARS AND OUR STATE OF WEST VIRGINIA HAS NO PROGRAMS THAT WILL HELP I HAVE EVEN SENT JIM JUSTICE AN E/MAIL ASKING FOR HELP AND HAVE NEVER HEARD A WORD I ALSO WROTE THE USDA AN E/MAIL ASKING ABOUT BORROWING 20,000 DOLLARS ON THERE PROGRAM I HAVE NOT HEARD A WORD BUT I ALSO NEED TO HAVE A WELL DRILLED I CAN NO LONGER CARRY 5 GALLION BUCKETS OF WATER BECAUSE MY SPINE HAS BEEN BUSTED I WAS ALWAYS TOLD THE GOVERMENT HAD A CLEAN WATER PROGRAM WE HAD A WELL BUT THANKS TO THE MINE BLASTING IT WENT DRY I HAVE SIT AT MY COMPUTER FOR HOURSE TRYING TO FIND SOME TYPE OF HELP FROM THIS STATE AND OUR GOVERMENT BUT IF YOU ARE POOR THERE IS NO HELP AND YOU CANT SAVE MONEY DO TO BILLS AND ANY WAY THE GOVERMENT WILL STOP YOUR SSI IF YOU HAVE 2,000 DOLLARS IN SAVINGS AND 841 DOLLARS A MONTH WONT PAY THE BILLS NO MATTER WHAT YOU DO YOU ARE ALWAYS BEHIND

    Reply

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