Gas Tax Holiday Extended Again

(Indianapolis, IN) – Governor Mike Braun has extended his suspension of Indiana’s Gasoline Usage Tax and Gasoline Excise Tax through October 6.

“Affordability is my top priority, and my gas tax suspensions are delivering the cheapest gas in America for Hoosiers. I’m keeping those savings going for Hoosier families,” said Gov. Braun. “My recommended budget will tap our reserves to keep state and local infrastructure projects fully funded.”

This suspension is part of the energy emergency that took effect August 7.

Both gas taxes will again be suspended through October 6 in all 92 counties, resulting in separate suspensions that are consecutive.

The governor says he will reevaluate in 30 days to determine whether another pause is necessary.

The energy emergency provides a 120-day window of authority.

Indiana has lowest gas prices in the country at around $3.45 per gallon, according to Triple A.

The gas tax suspension is saving drivers around 60 cents a gallon.

Gov. Braun says he remains committed to using all administrative capacity to make local units of government whole and use current reserves to allow the INDOT highway fund to continue all fiscal year 2027 projects and maintenance uninterrupted.

The governor has reached an agreement with House and Senate fiscal leadership to prioritize the use of funds available from the reserve balance during the 2027 budget session to replace lost revenue from the gas tax holiday. The reserve balance is currently on track to be over $5 billion.

Braun first suspended the Gasoline Usage Tax in April and expanded the relief in May to include the Gasoline Excise Tax.

He says he’s continued the suspension to provide Hoosier families additional breathing room at the pump while protecting funding for state and local infrastructure projects.