Local News

Oct 1, 2026

Ohio Lawmakers Approve 90-Day Gas Tax Holiday; Bill Awaits Governor’s Signature


 

Ohio motorists could soon see a significant reduction in the state taxes included in the price of gasoline and diesel.

The Ohio General Assembly approved House Bill 519 Wednesday, September 30, including provisions that would suspend nearly all of Ohio’s motor fuel tax for 90 days. The enrolled bill has been sent to Governor Mike DeWine.

Ohio currently taxes gasoline at 38.5 cents per gallon and diesel at 47 cents per gallon. Under the legislation, those taxes would be reduced to a nominal amount for the 90-day period.

The legislation was passed as an emergency measure, meaning the tax reduction can take effect immediately if DeWine signs the bill into law.

State officials estimate the temporary suspension would reduce motor-fuel tax collections by approximately $726 million.

Rather than taking that money from the Ohio Department of Transportation or delaying local road and bridge work, the legislation calls for General Revenue Fund dollars to replace the lost motor-fuel tax revenue.

For motorists, the maximum direct tax difference would amount to approximately $5.78 on a 15-gallon gasoline purchase or $7.70 on 20 gallons if the entire tax reduction is reflected in the retail price.

Economists have disagreed over how much of a temporary gas-tax reduction ultimately reaches consumers. A June survey of 19 Ohio economists found most questioned whether a three-month suspension would provide substantial financial relief, while others said even smaller savings could matter for lower-income households and people who drive long distances.

Supporters of the legislation say the temporary reduction would provide immediate relief as fuel prices remain elevated, while critics have questioned both the size of the savings for individual motorists and the use of hundreds of millions of dollars in general state revenue to replace the tax collections. 


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