INDIANAPOLIS (WISH) — Indiana’s gasoline use tax increased to 29.1 cents on July 1. The increase was announced by the Indiana Department of State Revenue announced in June.
That’s the highest Indiana’s gasoline use tax has been since the state began using a specific formula to determine the rate in 2014. The 5.1-cent increase also is the largest one-month jump since 1994.
The latest formula used the average price of regular unleaded gasoline from May 16 to June 15: $4.1586. That tax rate is determined by multiplying the price by 7%.
Per GasBuddy, Indiana’s current price of regular unleaded as of 9:20 a.m. Friday was $4.93 per gallon, meaning the gasoline use tax is likely to jump even higher for August.
Indiana began 2022 with a gasoline use tax of 18.2 cents.
The gasoline use tax rate hit a low of 7.6 cents for June 2020, at the start of the coronavirus pandemic when gas prices fell dramatically due to fewer drivers on the roads.
Indiana’s gasoline use tax will be up 12.3 cents from the July 2021 rate, and 18.7 cents higher than in July 2020.
Indiana’s gas excise tax also will increase 1 cent in July, rising to 33 cents.
Adding in the federal gas excise tax of 18.4 cents, Hoosiers will pay a total of 80.5 cents a gallon in total tax for gas starting in July, up from the current 74.4 cents per gallon.
The state gasoline tax increases come amid growing calls for Gov. Eric Holcomb to suspend the gasoline use tax. Instead, the governor and Republican lawmakers say they plan to call a special session to provide a tax rebate to Hoosiers due to rising inflation.