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 next month as Indiana’s gas tax rises slightly.
The state’s 34 cents a gallon gasoline tax will rise by 1 cent to 35 cents on July 1. This tax, which is not impacted by the rising price of fuel, increases by 1 cent every July 1, per Indiana law.
While the gasoline tax is going up by 1 cent, the state’s sales tax on gasoline will drop in July.
Indiana’s 7% sales tax on gasoline purchases will be 20.1 cents a gallon starting July 1, down from 20.5 cents a gallon in June. The approximately 2% decrease was announced in a notice Thursday by the Indiana Department of Revenue.
Officials calculated the new rate by using the statewide average pre-tax price for gasoline, which rose to $2.8655 a gallon during the May 16 to June 15 tracking period. This is down by about 2.1% from $2.9266 a gallon during the previous period, according to state records.
July’s tax decrease, while small, is the first decrease to occur since February, when the rate was at a low of 15.5 cents a gallon. July’s tax also follows four months of increases, records show.
Rising fuel prices 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 73.5 cents in taxes cents in taxes combined, including 55.1 cents in state taxes, for every gallon of gasoline they purchase in June. This is up by about 0.8% from 72.9 cents in June, records show.
Revenue from Indiana’s gasoline sales tax is earmarked for state and local road construction projects.
