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 pay a little more at fuel pumps in August as Indiana’s gas tax rises slightly.
The state’s 7% sales tax applied on gasoline purchases will be 20.3 cents a gallon starting Aug. 1, up from 20.1 cents a gallon in July. The approximately 1% increase was announced in a notice Friday by the Indiana Department of Revenue.
Officials calculated the new rate by using the statewide average pre-tax price for gasoline, which rose to $2.8967 a gallon during the June 16 to July 15 tracking period. This is up by about 1.1% from $2.8655 a gallon during the previous period, according to state records.
Since May, the sales tax on gas has been above 20 cents a gallon. August marks the fourth consecutive month of it being above this price, though it did drop slightly for July, records show.
The sales tax rate is separate from Indiana’s 36 cents a gallon gasoline tax, which is not impacted by the rising price of fuel. The 35 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 73.7 cents in taxes cents in taxes combined, including 55.3 cents in state taxes, for every gallon of gasoline they purchase in August. This is up by about 0.3% from 73.5 cents in July, records show.
Revenue from Indiana’s gasoline sales tax is earmarked for state and local road construction projects.
