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
Indiana’s gasoline tax is rising again and Hoosiers will be paying more at fuel pumps next month.
The state’s 7% sales tax applied on gasoline purchases will be 20.4 cents a gallon starting May 1, up from 18.9 cents a gallon in April. The nearly 8% increase was announced in a notice Wednesday by the Indiana Department of Revenue.
Officials calculated the new rate by using the statewide average pre-tax price for gasoline, which rose to $2.9202 a gallon during the March 16 to April 15 tracking period. This is up by about 8% from $2.7031 a gallon during the previous period, according to state records.
May’s gas tax is the highest since October 2023, when drivers paid 21.5 cents a gallon. The rate had dropped to a low of 15.5 cents a gallon in February, before increasing since then, 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 72.8 cents in taxes combined, including 51.4 cents in state taxes, for every gallon of gasoline they purchase in April. This is up by about 2.1% from 71.3 cents in March, records show.
Revenue from Indiana’s gasoline sales tax is earmarked for state and local road construction projects.
