STATEWIDE–For the fifth straight month, the gasoline use tax in Indiana is increasing. This time it is going up to 20.5 cents a gallon beginning July 1st.
The use tax is a 7% tax based on the average cost of gasoline in the previous month.
The gasoline excise tax is going up a penny to 34 cents per gallon. That increase is automatic and happens every year under state law. State Republican lawmakers approved extending the annual once-cent increase this spring. That increase will continue through 2027.
On July 1st, people in Indiana pay 72.9 cents per gallon in combined state and federal taxes on gasoline.