Gas Tax Holiday Savings Calculator
With several states and the federal government considering gas tax holidays to combat inflation, find out exactly how much this policy actually saves you based on your driving habits.
Driving & Vehicle Details
Tax Holiday Details
Your Estimated Savings
About this tool
The gas tax holiday calculator converts a proposed or active suspension of the federal 18.4 cent per gallon excise tax (or any state tax) into a household savings number based on your actual driving habits. The result is almost always smaller than the political coverage suggests, and academic research finds only about 60 to 80 percent of the cut ever reaches the pump.
How it works
Gallons per month = (Miles per week x 52 / 12) / Vehicle MPG Savings per month = Gallons per month x Tax cut per gallon Total holiday saving = Savings per month x Holiday duration months Effective saving = Total saving x Pass-through rate (~70-90%)
- Tax cut per gallon: federal is 18.4 cents (since 1993, not indexed). State holidays typically waive 15 to 50 cents.
- Pass-through rate: the share of the tax cut that actually reaches consumers; Doyle and Samphantharak (2008) measured ~70 percent in Illinois and Indiana 2000.
- Miles per week: US average is 260 (FHWA 2023), but commuter ZIPs in TX or CA can exceed 400.
- Vehicle MPG: US new vehicle average is 26 MPG (EPA 2025), used fleet ~22 MPG. Pickups average ~18 MPG, hybrids ~45 MPG.
Worked example
A Maryland commuter drives 350 miles per week in a 24 MPG SUV. The state proposes a 90 day suspension of its 47 cent gas tax (combined excise plus motor fuel sales) in summer 2026.
- Monthly miles: 350 x 52 / 12 = 1,517 miles.
- Monthly gallons: 1,517 / 24 = 63.2 gallons.
- Headline saving per month: 63.2 x 0.47 = 29.71 USD.
- Total 3 month saving: 89.13 USD on paper.
- Pass-through adjustment: at 70 percent (Maryland 2022 observed range) the realized saving is 62.39 USD.
- Per fill-up: on a 15 gallon tank, the saving is 4.93 USD before pass-through, ~3.45 USD realized.
2026 state and federal gas tax reference
Source: American Petroleum Institute state survey (January 2026) plus federal IRS Form 720. Figures include excise tax, environmental fees, and where applicable sales tax on gasoline.
| Jurisdiction | Total tax (cents/gal) | 3 month saving at 25 MPG |
|---|---|---|
| Federal only | 18.4 | ~25 USD |
| California (highest) | 68.1 | ~92 USD |
| Pennsylvania | 58.7 | ~79 USD |
| Illinois | 57.2 | ~77 USD |
| Washington | 49.4 | ~67 USD |
| New York | 44.4 | ~60 USD |
| Maryland | 47.0 | ~63 USD |
| Texas | 20.0 | ~27 USD |
| Mississippi | 18.8 | ~25 USD |
| Alaska (lowest) | 8.95 | ~12 USD |
Common mistakes
- Assuming 100 percent pass-through. Empirical work finds 60 to 90 percent. The headline saving on a calculator overstates the realized number.
- Ignoring the diesel premium. Federal diesel tax is 24.4 cents, not 18.4. Holidays often exclude diesel because it is a commercial fuel.
- Forgetting EV road use fees. Electric vehicles dodge the gas tax but pay flat annual fees in 33 states (200 to 213 USD in TX, GA). These survive holidays.
- Misreading state vs. federal. A federal holiday saves the same 18.4 cents nationwide; a state holiday only applies in that state and stacks with federal if both pass.
- Underweighting Highway Trust Fund impact. A six month federal holiday costs the fund ~14 billion USD, often backfilled with general fund transfers (debt-financed).
- Confusing announced versus signed. Many gas tax holidays are proposed and never enacted. Verify in the state code, not on cable news.
Related tools and glossary
Frequently asked questions
How much does a federal gas tax holiday actually save the average driver?
The federal gas tax has been 18.4 cents per gallon since 1993 (24.4 cents on diesel). The average US driver covers 13,500 miles per year at roughly 25 MPG, burning 45 gallons per month. A three month federal holiday saves 45 x 0.184 x 3 = 24.84 USD, before pass-through losses. The Treasury Department's 2022 analysis of the Biden proposal estimated drivers would only see about 80 percent of that hit the pump.
Does a gas tax holiday reduce inflation?
No, by consensus among economists. The Penn Wharton Budget Model and CBO scoring of the 2022 Gas Tax Holiday Act both found minimal CPI impact. The 18.4 cent saving is dwarfed by oil price volatility; CPI gasoline can move 30 to 50 cents per gallon in a typical month. It also drains the Highway Trust Fund (which collects ~28 billion USD per year from the federal tax) and risks oil companies absorbing the saving as margin.
Which states have the highest and lowest gas taxes in 2026?
Per the API state-by-state survey (January 2026): highest are California (68.1 cents/gal including sales tax), Pennsylvania (58.7 cents), Illinois (57.2 cents), Washington (49.4 cents), and Indiana (47.0 cents). Lowest are Alaska (8.95 cents), Hawaii (16.0 cents), New Mexico (18.88 cents), and Mississippi (18.79 cents). The federal 18.4 cents stacks on top of every state.
What happened when states actually tried gas tax holidays?
Maryland (March 2022, 30 days), Georgia (March to December 2022), Florida (October 2022, 1 month), and Connecticut (April 2022, 8 months) ran holidays during the 2022 inflation spike. Academic work (Doyle and Samphantharak 2008 on Illinois/Indiana 2000) found about 70 percent pass-through. Maryland 2022 saw closer to 60 to 70 percent at the pump in the first week, declining over time as base prices crept up.
Sources and further reading
- American Petroleum Institute (January 2026), State Motor Fuel Taxes Report, full breakdown by state.
- Doyle, J. and Samphantharak, K. (2008), $2.00 Gas! Studying the Effects of a Gas Tax Moratorium, Journal of Public Economics 92(3-4).
- Penn Wharton Budget Model (June 2022), The Gas Tax Holiday Act of 2022 static and dynamic scoring.
- Federal Highway Administration (2024), Highway Trust Fund: revenues and outlays, annual federal gas tax revenue ~28 billion USD.
- EPA (2025), Light-Duty Automotive Technology, Carbon Dioxide Emissions, and Fuel Economy Trends, MY 2024 average 26.0 MPG.