Georgia Gas Tax: 2026 Suspension, Rates, and Refunds

Georgia’s gas tax for 2026 is 33.3 cents per gallon on gasoline and 37.3 cents per gallon on diesel, set by O.C.G.A. § 48-9-3 and adjusted each year for fuel efficiency and inflation.¹²³

What the 2026 Suspension Covers

The suspension applies to every fuel subject to the state excise tax under O.C.G.A. § 48-9-3: gasoline, clear diesel, aviation gasoline, liquefied petroleum gas, compressed natural gas, and ethanol blends.² During the suspension windows, licensed distributors do not remit the state excise tax on the fuel they sell.

What the suspension does not touch is just as important. The prepaid local tax and any local sales and use taxes stay in effect throughout. Federal excise taxes also continue as normal. So the price at the pump drops by the state excise portion only, and the size of that drop at any given station depends on whether the retailer passes the full reduction through.

Everything You Pay Per Gallon

Georgia drivers pay four separate taxes on a typical gallon of highway fuel.

State excise tax. When collection is in effect, the 2026 rates are:¹

Gasoline: 33.3 cents per gallon
Diesel: 37.3 cents per gallon
Aviation gasoline: 1.0 cent per gallon
Liquefied petroleum gas and special fuels, including CNG: 33.3 cents per gallon

Federal excise tax. The federal government adds 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel. Both figures include a 0.1-cent-per-gallon fee that funds the Leaking Underground Storage Tank Trust Fund. Congress last changed the federal rate in 1993, and it is not indexed for inflation.⁴

Prepaid local tax. Georgia charges a prepaid local tax on motor fuel sold for highway use. Rather than a fixed cents-per-gallon amount, this tax is calculated by multiplying each jurisdiction’s local tax rate by a statewide average retail price that the Department of Revenue updates twice a year, on January 1 and July 1.⁵ For the first half of 2026, the reference retail prices are $2.499 per gallon for gasoline and $3.000 per gallon for diesel.¹ Because local rates vary by county, this portion of what you pay depends on where you fill up.⁶

Local sales and use taxes. Applicable local sales taxes may also apply and, like the prepaid local tax, stay in effect during a state excise suspension.

Who Actually Remits the Tax

The legal obligation to pay Georgia’s motor fuel excise tax sits with licensed distributors, not with drivers or gas stations. O.C.G.A. § 48-9-3 places the legal incidence of the tax on the distributor.⁷ In practice, distributors build the tax into the wholesale price, retailers pass it along, and the cost lands with you at the pump.

Why the Rate Changes Every Year

Georgia’s excise tax rate is recalculated by the Department of Revenue every year through a two-step formula written into § 48-9-3.⁷

First, the department compares the average fuel efficiency of new vehicles registered in Georgia against the prior year, using the U.S. Department of Energy Fuel Economy Guide. The current rate is multiplied by that percentage change and adjusted up or down. Second, the department multiplies the preliminary rate by the annual percentage change in the Consumer Price Index and adjusts again. The final figure takes effect the following January 1.

The fuel-efficiency step keeps revenue steady as newer vehicles cover more miles per gallon. The CPI step accounts for inflation. Together they explain the climb from 26.0 cents per gallon on gasoline in mid-2016 to 33.3 cents in 2026. New rates appear on the Department of Revenue website before each year begins.¹

Refunds for Off-Road and Agricultural Use

If you paid the excise tax on fuel that never touched a public road, Georgia lets you claim the money back. O.C.G.A. § 48-9-10 spells out the main refund categories:⁸

Farm equipment operators who buy gasoline in quantities of 25 gallons or more for tractors and equipment used to produce crops on land they own or lease can get a refund of the full excise tax minus 1 cent per gallon.
Businesses applying fertilizers, crop protection chemicals, or poultry litter with vehicles licensed for agricultural field use can claim a refund of diesel fuel taxes paid.
Anyone buying non-dyed diesel in quantities of 25 gallons or more for non-highway equipment can claim a refund of the excise tax.
Retail fuel dealers can claim a 2 percent refund on the first 5.5 cents per gallon of excise tax to offset evaporation, shrinkage, and spillage losses.

Each category has its own form: MFR-03 for agricultural crop use, MFR-04 for agricultural field-use diesel, and MFR-43 for non-dyed diesel used off-highway.⁹ Keep detailed purchase and usage records, because the Department of Revenue verifies claims before paying out.

Some fuel is exempt at the sale itself, so no refund is needed. O.C.G.A. § 48-9-3(b) exempts bulk sales between licensed distributors, fuel purchased by the U.S. government for its exclusive use, fuel sold for export out of Georgia, dyed fuel oils sold for off-road use, fuel oils and gases sold directly to consumers for heating only, and compressed petroleum gas sold to consumers who will not use it on public roads or resell it.⁷ Jet fuel and dyed diesel for non-highway use are generally outside the state excise tax entirely.²

Federal Fuel Tax Credits

The federal tax on off-road fuel is handled separately. Businesses can claim a federal fuel tax credit on Form 4136 for gasoline used off public roads, undyed diesel used in non-highway equipment, and certain aviation fuel uses.¹⁰ Federal credits for alternative fuels and alternative fuel mixtures expired for sales or uses after 2024 and have not been renewed.¹¹

If You Drive an Electric Vehicle

Electric vehicle owners do not pay Georgia’s motor fuel excise tax because they do not buy gasoline or diesel. Instead, they pay an annual alternative fuel vehicle licensing fee. For 2025, that fee was $234.97 for non-commercial EVs and $352.56 for commercial EVs, and it also applies to plug-in hybrids and flexible fuel vehicles carrying an AFV license plate.¹² The fee is meant to approximate what a comparable gasoline vehicle would pay in fuel taxes over a year.

Where the Money Goes

Every dollar Georgia collects in motor fuel tax is constitutionally dedicated to transportation. Article III, Section IX, Paragraph VI of the Georgia Constitution requires that an amount equal to all motor fuel tax collections, less refunds, rebates, and collection costs, be appropriated each year for providing and maintaining public roads and bridges and for grants to counties for road construction and maintenance.¹³

The appropriation is automatic. Even if the General Assembly leaves the amount out of a general appropriations act, the money stays available for road and bridge work, and the state budget process cannot reduce it. The only exception is during a declared invasion or a major catastrophe proclaimed by the Governor, when the funds can be redirected for defense or relief by executive order.¹³

1
Georgia Department of Revenue. Calculating Tax on Motor Fuel
2
Georgia Department of Revenue. MFT-2026-01 Suspension of Georgia Motor Fuel Taxes
3
Office of Governor Brian P. Kemp. Gov. Kemp Suspends Gas Tax for Two Additional Weeks
4
U.S. Energy Information Administration. How Much Tax Do We Pay on a Gallon of Gasoline and on a Gallon of Diesel Fuel?
5
Legal Information Institute. Georgia Comp. R. and Regs. R. 560-9-1-.12 – Calculation of Prepaid Local Tax and IFTA Rates
6
Georgia Department of Revenue. Sales Tax Rates – Prepaid Local Tax (Motor Fuel for Highway Use)
7
FindLaw. Georgia Code Title 48 Revenue and Taxation 48-9-3
8
FindLaw. Georgia Code Title 48 Revenue and Taxation 48-9-10
9
Georgia Secretary of State. Georgia Administrative Rules and Regulations – Chapter 560-9-1 Motor Fuel Tax
10
Internal Revenue Service. Instructions for Form 4136 and Schedule A
11
Internal Revenue Service. Publication 510, Excise Taxes
12
Alternative Fuels Data Center. Alternative Fuel Vehicle (AFV) Annual Fee
13
FindLaw. Constitution of the State of Georgia Art. III, Sec. 9, Para. VI