(The Center Square) – Gov. Brian Kemp signed House Bill 1199 on Friday, which eliminates the state’s gas tax for 60 days immediately with his signature.
Gas prices soared in Georgia and across the country since the conflict between the U.S. and Iran began on Feb. 28. The average cost for a regular unleaded gallon of gas was $3.79 in Georgia, up from $2.70 a month ago, according to AAA.
Georgia’s fuel tax adds about 33 cents to gasoline and 37 cents to diesel fuel, according to the Georgia Department of Revenue. The money funds statewide transportation projects.
The House passed House Bill 1199 on Wednesday, and the Senate approved it unanimously on Thursday. House Speaker Jon Burns estimated the fuel tax break could return $400 million to Georgians over the next 60 days.
“Whether it’s the immediate relief for millions of businesses, drivers, and citizens in House Bill 1199, the income tax rebates enabled by House Bill 1000, or the property tax relief grants in the Amended 2026 Budget, here in Georgia, we aren’t just talking about addressing affordability, we’re delivering results,” Burns said.
Kemp also signed House Bill 1000, which was passed this week, and gives taxpayers a rebate.
Single Georgians who filed in tax years 2024 and 2025 will receive up to $250, and married Georgians will receive up to $500. Residents who filed as head of household will get up to $375.
“Hardworking Georgians know best how to spend their money, not the government,” said Gov. Brian Kemp. “That’s why I’m proud to sign these bills and, along with the General Assembly, deliver meaningful tax relief on top of the other measures we’ve taken in recent years. Because we budget conservatively, we can take steps like these that actually deliver on affordability issues for families in our state.”
No official timeline has been set, but the bill’s fiscal note hints that the rebates could come in the next few weeks.
“Based on the last rebate distribution, DOR (Department of Revenue) data suggests significant portion of the rebates are expected to be made primarily by June 2026, though the timing would depend on the final date of enactment and DOR’s ability to validate and process the payments after returns are filed,” the fiscal note said.
