Diesel in the USA: Which States Suspended the Tax—and Which Still Charge It?

For a trucking business, every cent per gallon matters. However, state measures intended to ease fuel costs vary: some suspend taxes, others freeze scheduled increases, and others allow dyed diesel in specific operations.

This review of seven states, based exclusively on government documents, explains what changes, how long the measures last and which obligations remain.

Georgia: Suspension Includes Highway Diesel

Georgia suspended collection of its state motor fuel excise tax beginning September 29, 2026. A subsequent executive order extended the suspension through 11:59 p.m. on November 5.

The Department of Revenue confirms that the suspension includes clear diesel used on highways, along with gasoline and other fuels. Local taxes, however, remain in effect.

The order also authorizes the department to waive certain penalties associated with selling, delivering and using dyed diesel on highways. This is a separate provision from the state fuel tax suspension.

Ohio: Nearly Complete Tax Reduction for 90 Days

Ohio’s temporary fuel tax relief runs from 12:01 a.m. on October 4, 2026, through 11:59 p.m. on January 2, 2027.

The regular diesel tax of 47 cents per gallon has been reduced to a negligible residual rate under House Bill 519.

According to the Department of Taxation, fuel retailers must pass the full tax savings on to consumers. Failure to do so may be treated as an unfair or deceptive practice and referred to the Ohio Attorney General’s Office.

The state also announced a $725 million transfer from reserves to offset lost revenue and preserve infrastructure projects.

North Carolina: State Fuel Tax Set at Zero Through November

North Carolina set its motor fuel excise tax at zero cents per gallon from October 10 through November 30, 2026. The suspension covers gasoline, diesel and alternative fuels.

The official notice states that the inspection tax remains in effect. Taxpayers must also continue filing the required returns and reporting applicable gallons and mileage.

Separate dyed diesel provisions include a tax exemption for certain certified users through December 31, along with penalty relief for highway use associated with agricultural activities. These provisions have different requirements and effective dates from the general tax suspension.

Texas: Dyed Diesel Allowed, but the Tax Still Applies

A disaster declaration effective September 28, 2026, suspended restrictions on using dyed diesel on Texas highways.

The Comptroller expressly states that the measure does not waive the 20-cent-per-gallon state tax when dyed diesel is used in a taxable manner on highways.

Permission to use the fuel therefore does not make it tax-free. The agency said it continues to explore options to help taxpayers remit the amounts owed.

Indiana: Targeted Relief for Farming and Timber Hauling

Indiana has extended a suspension of gasoline taxes through November 4, 2026. That measure should not be interpreted as a general diesel tax suspension.

Separately, beginning September 30, farmers and timber harvesters may use dyed diesel in vehicles hauling farm and timber products on Indiana roads for the duration of the energy emergency.

The Department of Revenue emphasizes that this authorization is limited to those users.

Illinois: Scheduled Increase Paused, Tax Remains

Illinois suspended the inflation adjustment scheduled to take effect on July 1, 2026, for six months.

The measure keeps the state diesel motor fuel tax at 55.8 cents per gallon through December 31, 2026.

The relief prevents the scheduled increase. It does not eliminate the existing per-gallon tax, according to the Department of Revenue’s bulletin.

Utah: Temporary Tax Cut Applies to Gasoline

Utah reduced its gasoline tax from 37.9 to 31.9 cents per gallon, effective July 1 through December 31, 2026.

The State Tax Commission states that this temporary reduction does not change diesel tax rates, or those for compressed natural gas, liquefied natural gas and hydrogen. It should therefore not be classified as a diesel tax suspension.

For truckers, these distinctions have practical consequences. Before estimating refueling costs, operators should identify the authorized fuel, the specific tax affected and the applicable dates. Permission to use a fuel, a sector-specific exemption and a general tax suspension offer different benefits.