Indiana to See Gas Tax Increases Beginning July 1

You’ll be paying more to fuel up your gas tank in Indiana beginning Tuesday, July 1, as the state’s excise tax and sales tax for gasoline will both see hikes.

After Tuesday, Indiana’s gasoline excise tax will now become 36 cents a gallon—a climb of one cent a gallon.

The state’s current gasoline excise tax was put into effect with the 2018 Road Funding Bill (HEA 1290-2018) to pay for transportation infrastructure improvements. The bill established an automatic increase year-to-year of no more than one cent per gallon through 2027.

Indiana’s gasoline sales tax, which is an entirely different tax and is updated monthly, will also see an increase on July 1. It’s up by about a cent, and will cost 17 ½ cents per gallon.

Federal gas taxes add 18.4 cents per gallon and there is also an oil inspection fee of one cent.

That brings the total of Indiana’s state and federal taxes per gallon to 72.9 cents.

According to AAA, the average price for regular unleaded across Indiana is $3.24 a gallon.

The national average for regular unleaded gasoline is $3.18.

Diesel fuel is averaging $3.75 a gallon across Indiana.