Indiana Gov. Mike Braun extended the state’s gas tax suspension by another 30 days on Wednesday and also suspended the gasoline excise tax. Collectively, this will save drivers 12.4 percent on the average price of gasoline.
The Gasoline Usage Tax on fuel is 7 percent. For May, the tax is 23 cents per gallon. The first suspension went into effect in April. Sixty days is the longest an Indiana governor can suspend the gas tax without a special legislative session.
The Gasoline Excise Tax’s rate for 2026 is 36 cents per gallon.
“Making life more affordable for Hoosiers will always be my top priority,” Braun said. “Suspending both the gas tax and excise tax gives Hoosiers meaningful relief for the next month.”
“Indiana doesn’t need any more tax revenue; what this state needs is for people to keep more of their paychecks,” state Rep. Gregor W. Porter (D-Indianapolis) said.
Indiana’s gasoline tax rates are among the highest in the United States, and the average price of gasoline is $4.76 per gallon. When the usage tax was suspended in April, the average was $4.13 per gallon.
Braun also announced that he is increasing the mileage reimbursement rate for state employees who use their own vehicles for work-related travel.