Indiana announces 30-day tax holiday on retail gasoline

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Indiana Gov. Mike Braun (R) announced a 30-day tax holiday on retail gasoline – but not diesel fuel – to provide some relief from high prices at the pump.

“I am declaring a gas tax holiday to give Hoosiers relief from the pain at the pump from high gas prices. Affordability is my top priority,” Braun said April 8. 

Fueling station
As of April 9, the average cost for a gallon of gas in Indiana was $4.13, a few cents below the national average. (Photo: iStock)

Taxes on fuel in Indiana are made up of the federal gas tax of 18.4 cents per gallon, the state’s excise tax of 36 cents per gallon, and the state’s 7% sales tax.

According to the Indiana Department of Revenue, drivers will save 17.2 cents a gallon during the holiday. The federal tax and the state excise tax remain in effect.

Braun called on retailers to deliver the tax relief directly to consumers and said that the state will be “patrolling the pumps.” He asked Attorney General Todd Rokita to enforce protections from price gouging.

“Hoosiers deserve the full relief intended by this emergency measure and we will use every tool at our disposal to ensure that the removal of the tax translates into lower prices at the pump — and that consumers are not taken advantage of during this time,” Rokita said.

As of April 9, AAA reported the average cost for a gallon of gas in Indiana was $4.13, a few cents below the national average.

Braun said he will revisit the emergency declaration in 30 days.

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