A motorist fills up the tank of a vehicle at a Costco gasoline station on Thursday, Nov. 30, 2023, in Thornton, Colo.
The Associated Press File Photo
Hoosiers will once again pay more in taxes at gasoline pumps next month.
The state’s 7% sales tax applied on gasoline purchases will be 18.9 cents a gallon starting March 1, up from 16.9 cents a gallon in March. The approximately 11.8% increase was announced in a notice Thursday by the Indiana Department of Revenue.
Officials calculated the new rate by using the statewide average pre-tax price for gasoline, which rose to $2.7031 a gallon during the Feb. 16 to March 15 tracking period. This is up by about 10.6% from $2.4153 a gallon in the previous period, according to state records.
April’s gas sales tax rate is the highest in six months. In November, drivers paid 20.3 cents a gallon, with the rate dropping several times until March, records show.
The sales tax rate is separate from Indiana’s 34 cents a gallon gasoline tax, which is not impacted by the rising price of fuel. The 34 cents a gallon tax last increased by 1 cent on July 1, per Indiana law.
Rising fuel prices also do not affect the federal gas tax of 18.4 cents a gallon. The federal tax has been unchanged since 1993, records show.
Hoosiers will pay 71.3 cents in taxes combined, including 52.9 cents in state taxes, for every gallon of gasoline they purchase in April. This is up by about 2.8% from 69.3 cents in February, records show.
Revenue from Indiana’s gasoline sales tax is earmarked for state and local road construction projects.
