The Gas Tax in Georgia: How It’s Calculated and Used
Understand the mechanics of Georgia's gas tax, a user fee system that translates the price at the pump into funding for state road and bridge projects.
A gas tax is a per-gallon fee on motor fuels levied by federal and state governments. This tax functions as a user fee, where drivers contribute directly to the upkeep of roads and highways. The revenue generated is a primary funding source for transportation infrastructure, providing a stable stream for long-term projects.
Calculating the Total Gas Tax
The price of gasoline in Georgia includes a combination of state and federal taxes. The primary component is the state’s motor fuel excise tax, which for 2025 is 33.1 cents per gallon for gasoline and 37.1 cents per gallon for diesel fuel. This rate is calculated by the licensed distributor and remitted to the state.
A federal excise tax is also applied to every gallon of fuel sold. The federal government imposes a tax of 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel. This federal portion is uniform across all states and contributes to the Highway Trust Fund.
For a gallon of regular gasoline in Georgia, the 33.1-cent state tax and 18.4-cent federal tax combine for a total of 51.5 cents per gallon in excise taxes. For diesel, the 37.1-cent state tax and 24.4-cent federal tax result in a total of 61.5 cents per gallon. Some local jurisdictions may also apply their own sales taxes to the retail price of fuel.
Use of Gas Tax Revenue
In Georgia, revenue from the state’s motor fuel tax is constitutionally earmarked for transportation-related expenditures. These funds cannot be diverted to the state’s general fund for other government programs.
The Georgia Department of Transportation (GDOT) administers this revenue, overseeing projects financed by the tax. These include constructing new highways to accommodate population growth, resurfacing existing roads to ensure safety, and repairing or replacing aging bridges across the state. The revenue also covers debt service on bonds issued for past transportation investments.
Recent Suspensions and Reinstatements
In response to rising fuel prices and economic inflation, Georgia’s governor has used executive orders to temporarily suspend the state’s motor fuel tax. These actions were intended to provide financial relief to consumers and counteract the financial strain caused by high inflation.
The first suspension began in March 2022 and lasted for nearly ten months, concluding on January 10, 2023. During this period, it is estimated that Georgians saved approximately $1.7 billion. The state used funds from its budget surplus to compensate for the lost revenue, ensuring that infrastructure projects were not delayed.
The governor issued another temporary suspension from September 13, 2023, through October 12, 2023. Under state law, the governor has the authority to suspend taxes by executive order, but the legislature must ratify the action in their following session.
Tax Exemptions and Special Fuels
While most fuel sold in Georgia is subject to the state motor fuel tax, specific exemptions exist. An exemption applies to dyed diesel fuel, which is colored red to indicate it is for off-road use only, such as in agricultural and construction equipment. This fuel is not subject to the state motor fuel excise tax.
Fuel purchased by certain government entities is also exempt. Public school systems and local governments are exempt from the state motor fuel tax on fuel purchased for their vehicles. State agencies are not exempt from the state tax but are exempt from the federal excise tax on diesel fuel.
The state taxes some alternative fuels differently. For 2025, the rate for liquefied petroleum gas (LPG) and compressed natural gas (CNG) is 33.1 cents per gallon, the same as gasoline. Aviation gasoline is taxed at a much lower rate of one cent per gallon.