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 slightly and Hoosiers will pay a little more at fuel pumps next month.
The state’s 7% sales tax applied on gasoline purchases will be 20.5 cents a gallon starting June 1, up from 20.4 cents a gallon in May. The approximately 0.5% increase was announced in a notice Monday by the Indiana Department of Revenue.
Officials calculated the new rate by using the statewide average pre-tax price for gasoline, which rose to $2.9266 a gallon during the April 16 to May 15 tracking period. This is up by about 0.22% from $2.9202 a gallon during the previous period, according to state records.
April’s gas tax increase, while small, is the fourth consecutive increase since February, when the rate was at a low of 15.5 cents a gallon. The tax is now the highest it’s been since October 2023, when it was 21.5 cents a gallon, 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, and will increase again this July, 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 72.9 cents in taxes cents in taxes combined, including 54.5 cents in state taxes, for every gallon of gasoline they purchase in June. This is up by about 0.14% from 72.8 cents in May, records show.
Revenue from Indiana’s gasoline sales tax is earmarked for state and local road construction projects.
