How much is the federal gas tax and how much could Americans save as Trump weighs gas tax holiday amid soaring fuel prices

Federal gas tax: As gas prices continue to climb across the US, attention is turning to one small charge that appears on every gallon sold: the federal gas tax. US president Donald Trump said Monday that his administration is considering temporarily suspending the tax to ease pressure on drivers paying some of the highest fuel prices seen since 2022, as per a report.

How Much Is the Federal Gas Tax Per Gallon

Currently, the federal government charges 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel, as per a CBS News report. That money helps fund the Highway Trust Fund, which supports road and infrastructure projects across the country.

Federal Gas Tax Per Gallon: How Much Would Drivers Actually Save

With the national average price for regular gas reaching $4.52 per gallon on May 11, 2026, suspending the federal gas tax would lower the price only slightly, bringing it down to about $4.34 per gallon, as per the report. Diesel prices would fall from $5.64 to roughly $5.39 per gallon.


Even with that reduction, drivers would still be paying far more than they were before the Iran conflict began in late February, when fuel prices started surging after the US and Israel attacked Iran. Gasoline prices have jumped roughly $1.54 per gallon since then.

How Much Is Federal Gas Tax Relief Worth for the Average Driver

Tax and energy experts say the savings from a federal gas tax holiday would likely feel modest for most households. According to Andrew Lautz of the Bipartisan Policy Center, drivers filling up a sedan today are already paying about $18 to $25 more per tank than they were before the war, while suspending the federal gas tax would save only about $2 per fill-up, as per the CBS News report.

For larger vehicles, the savings could be slightly higher. A California SUV driver, for example, could save between $2.36 and $3.09 per tank if the federal tax were paused. But even then, fuel costs would still be roughly $24 to $32 higher per fill-up compared to pre-war levels, as per the report.

What Is the Federal Gas Tax Debate in Washington

The proposal also faces political and financial hurdles. Because the gas tax is established under federal law, Congress would have to approve any suspension. Analysts also warn that pausing the tax could reduce federal revenue significantly. GasBuddy analyst Patrick De Haan estimated the move would cost the government around $2.1 billion per month, reported CBS News.

Gas Tax Changes at the State Level Are Already Happening

Some states have already taken their own steps to ease fuel costs. Georgia, Indiana and Utah have temporarily waived portions of their state fuel taxes. Since state gas taxes can range from about 15 cents to 60 cents per gallon, experts say state-level suspensions can sometimes provide more noticeable relief than removing the federal tax alone.

Indiana, in particular, has seen major price drops after waiving both its use tax and excise tax, with some stations reportedly seeing prices fall below $4 per gallon.

FAQs

How much is the federal gas tax right now?
The federal gas tax is 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel.

How much would gas prices drop if the tax is suspended?
Regular gas prices could fall from $4.52 to about $4.34 per gallon.