Maryland's Gas Tax Holiday
In March 2022, due to surging gasoline prices, Comptroller Peter Franchot called on the General Assembly of Maryland and Governor Hogan to immediately pass legislation instituting a gas tax holiday (technically called a motor fuel tax suspension) to help ease the financial burden on taxpayers. Although Comptroller Franchot called for a 90-day suspension, the legislature quickly passed a 30-day gas tax holiday. This bill was signed into law by Governor Hogan on Friday, March 18, 2022.
Unlike the annual sales tax holidays the Comptroller promotes in February for Tax-Free Energy Weekend and in August for Tax-Free Shopping Week, gas (motor fuel) tax is different. Sales tax is normally applied at checkout for clothing and other taxable items consumers purchase. State gas tax however, is paid by the retail owner/seller as soon as he/she receives the gasoline in their tanks. In essence, that tax is pre-paid by the station owner before you even fill up your tank!
The Comptroller’s office will issue refunds to these retail and wholesale sellers on the tax they have already paid for the 30-day tax holiday. The sellers will be passing those savings along to you.
Do you have questions? We thought you might.
Frequently Asked Questions for Consumers- Gas Tax Holiday
If you are a retail and wholesale seller, please visit our Gas Tax Holiday Page for Retail and Wholesale Sellers and Motor Carriers.