This State Is Getting Rid of Its Gas Tax for the Rest of 2022

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  • Some U.S. states have decided to reduce or eliminate gas taxes to help residents save money. 
  • Residents of New York will see a reduction of at least $0.16 per gallon through the end of this year.

This change could help New York drivers keep more money in their pockets. 

Gas prices continue to climb across the country. While prices are much higher than normal, gas costs can vary greatly depending on where you live. States also have different gas taxes in place -- and these taxes can impact the total price that you pay. New York is getting rid of its gas tax for the rest of 2022, and residents could save money. Find out what you need to know. 

Your state's gas tax rate can influence how much you pay at the pump. Some states have a higher gas tax rate than others. The American Petroleum Institute's most recent State Motor Fuel Excise Tax Report shows that California has the highest gasoline motor fuel tax and diesel motor fuel tax in the country. Several other states aren't too far behind. 

When gas prices are high, residents in states with higher gas taxes may pay even higher per gallon rates to fill up their cars. Some states are finding ways to provide relief amid higher than normal gas prices. 

Reducing or temporarily suspending gas taxes is one solution that can help drivers keep more money in their bank accounts. New Yorkers will be getting some relief at the pump through the end of the year. If you live in New York, this change could impact your finances.  

What this means for New Yorkers 

New York officials recently announced that the state would temporarily suspend its gasoline tax for the rest of the year. What does that mean exactly? 

From June 1, 2022, through Dec. 31, 2022, New York will suspend certain fuel taxes. This suspension includes motor fuel excise tax, State sales tax, and Metropolitan Commuter Transportation District sales tax on motor fuel and diesel motor fuel. 

With this change, drivers will get a reduction of at least $0.16 per gallon statewide. Some counties will see higher savings. 

While $0.16 per gallon may not seem like a lot of money, this change could help New York state residents feel less financial strain as everyday gas and food costs continue to soar. 

Tips for dealing with high gas prices

If high gas prices are causing you financial stress, you're not alone. Many Americans are looking for ways to minimize the economic impact of increasing gas prices. The following tips may help you better deal with high gas costs: 

  • Take advantage of gas station loyalty programs. Many gas stations have loyalty programs. These programs are free to join, and they could save you a few cents on every gallon that you buy when you use your membership perks.
  • Pay for gas with a gas rewards credit card. You can earn rewards on your spending with gas rewards credit cards. You may be able to redeem your rewards for free gas or earn cash back every time you fill up at the pump. 
  • Review gas prices in your area. Keep an eye on gas prices in your local community. You may be able to save money by going to a nearby gas station with a lower rate. 

If you drive a car that doesn't get the best gas mileage, you may want to adjust your driving habits and improve your vehicle upkeep to cut down on wasted money and gas. 

Every little bit of saved money makes a difference and can help your budget. For additional tips, check out these personal finance resources

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