Ohio Department of Taxation Releases Guidance on 90-Day Gas Tax Suspension

Ohio Department of Taxation Releases Guidance on 90-Day Gas Tax Suspension

The Ohio Department of Taxation released administrative guidance to implement the state's 90-day motor fuel tax holiday after Gov. Mike DeWine signed HB519 (A. White) into law on Thursday, October 1, 2026.

The emergency legislation temporarily reduces Ohio’s fuel tax to provide relief to drivers across the state.

Beginning at 12:01 a.m. on Sunday, Oct. 4,through 11:59 p.m. on Saturday, Jan. 2, 2027, the state motor fuel tax rate will temporarily drop from the standard 38.5 cents per gallon for gasoline and 47 cents per gallon for diesel down to 0.0001¢ per gallon. The law includes a $725 million transfer from state reserve funds to fully offset the temporary reduction, preserving road and infrastructure maintenance projects.

Under the newly enacted law, fuel retailers are required to pass along the full value of the tax savings directly to consumers at the pump. Failure to transfer these savings to consumers may be treated as an unfair or deceptive act and is subject to referral to the Ohio Attorney General’s Office.

"Our department is moving quickly to support retailers and businesses in executing this transition smoothly before the Oct. 4 effective date," said Ohio Tax Commissioner Patricia Harris. "We encourage all motor fuel retailers to adjust their collection systems beginning at midnight on Oct. 4, so Ohio drivers see this direct relief at the pump."

The guidance also provides further details and compliance guidelines for requirements regarding pump tax notices, reimbursement claims, and post-holiday inventories.

The department said it will continue to provide updated information and guidance on the initiative through its website HERE.