INDIANAPOLIS, Ind. (WOWO) — Governor Mike Braun announced Wednesday that the state will temporarily suspend its sales tax on gasoline, offering short-term relief to drivers amid elevated fuel prices.
According to our partners in news at 21ALIVE, the governor declared a 30-day tax holiday effective immediately, pausing Indiana’s 7% gasoline use tax. Braun said the state will reevaluate the policy at the end of the period to determine whether an extension is warranted.
While the sales tax is being lifted, the state’s fixed excise tax of approximately $0.36 per gallon will remain in place. Combined gas taxes had totaled about $0.53 per gallon this month prior to the suspension.
With the average price of gasoline in Indiana hovering around $4.14 per gallon—just below the national average—drivers could see savings of roughly 25 to 30 cents per gallon, depending on how retailers adjust prices.
Braun emphasized that the state will be monitoring gas stations to ensure the tax savings are passed on to consumers. He also called on Todd Rokita to enforce protections against price gouging.
State officials say the move is intended to provide immediate financial relief for Hoosiers, particularly as fuel costs continue to impact household budgets and travel expenses.
