Indiana Gas Tax
Indiana’s state taxes and fees on gasoline total 64.5¢ a gallon, the 3rd-highest of 51; with the 18.4¢ federal tax, drivers pay 82.9¢ a gallon in combined tax. Rates are from U.S. Energy Information Administration data as of July 2026.
What makes up Indiana’s 82.9¢
| Indiana state excise tax | 37.0¢ |
|---|---|
| Other Indiana taxes & fees sales/use taxes, inspection and environmental fees | 27.5¢ |
| Total Indiana state tax | 64.5¢ |
| Federal excise + LUST fee 18.3¢ excise + 0.1¢ LUST, unchanged since 1993 | 18.4¢ |
| Combined state + federal | 82.9¢ |
The Gasoline Use Tax (formerly the prepaid sales tax) is considered the equivalent of the 7% sales tax that would be collected by a retail merchant and replaces the obligation of the retail merchant to collect the sales tax on the sale of gasoline. The Gasoline Use Tax is calculated on a monthly basis (see Departmental Notices for new rates). The rate is $0.2650/gal, as of June 1, 2026. A 7% sales tax on diesel fuel no longer applies. Oil Inspection fee: $0.0100/gal.
Indiana's tax: an annual adjustment and a monthly use tax
Indiana taxes gasoline twice. The gasoline excise tax, now 37.0¢ a gallon, is adjusted each July 1 by a statutory formula, with each year’s increase capped at one cent; the July 1, 2026 adjustment took it from 36¢ to 37¢. The gasoline use tax, which replaces the 7 percent sales tax a retailer would otherwise collect, is recalculated every month from average prices, and a small oil inspection fee is added.
The excise was 18¢ until a 2017 transportation law raised it to 28¢ on July 1, 2017 and began the annual adjustments. In 2026, Governor Mike Braun declared an energy emergency in April and suspended the gasoline use tax, then added the excise tax to the suspension in May. Both remained suspended under renewed emergency orders into the fall, with the latest extension running through October 6, 2026. The EIA table shows the rates in law, not the suspension.
Indiana’s total state tax of 64.5¢ a gallon, when collected, is the 3rd-highest of the 50 states and D.C., against a 51-jurisdiction average of 33.8¢.
How the tax fits with fuel supply and price history is covered on the Indiana gas prices page.
Sources: current rates and rankings are from the EIA motor fuel tax table in our database; other facts are from the sources listed here.
- U.S. EIA, Federal and State Motor Fuels Taxes (Petroleum Marketing Monthly)
- Indiana Department of Revenue, Departmental Notice 43: gasoline license tax rate
- Indiana Department of Revenue, Gasoline Use Tax
- Indiana Capital Chronicle, Indiana gas tax suspension continues through Oct. 6 (September 3, 2026)
Indiana Compared With Neighboring States
In the July 2026 EIA table, 1 of 4 bordering states has a higher state total than Indiana: Illinois, the bordering state with the highest total, at 71.7¢, which puts Indiana 7.2¢ below Illinois. Michigan shows 53.4¢ in the July 2026 EIA table, and Indiana is 11.1¢ above Michigan. Ohio's 38.5¢ leaves Indiana 26.0¢ above Ohio in the July 2026 EIA table, and Kentucky's 26.4¢, the lowest among the bordering states, leaves Indiana 38.1¢ above Kentucky.
Across the 4 bordering states, the July 2026 EIA table shows totals of 71.7¢, 53.4¢, 38.5¢ and 26.4¢ for Illinois, Michigan, Ohio and Kentucky. Indiana's state total is 30.7¢ above the 33.8¢ average in the July 2026 EIA table. The range in that July 2026 table runs from 9.0¢ in Alaska to 73.6¢ in California, and 2 jurisdictions have a higher state total than Indiana while 48 have a lower one.
In the EIA's July 2026 table, Indiana's 37.0¢ excise tax is 57% of the state total, and the other 27.5¢ comes from other state taxes and fees on gasoline. In the July 2026 EIA table, the 18.4¢ federal tax is the same in every state. Set beside it, the state's 64.5¢ (EIA table, July 2026) is 78% of the combined 82.9¢. County and local taxes are excluded from the EIA's July 2026 table, and it lists no local option gasoline taxes for Indiana.
How much of a gallon in Indiana is tax
Indiana gasoline is estimated at $3.99 a gallon. Against that, the 82.9¢ of combined state and federal tax is about 20.8% of what a driver pays — with local taxes, where they apply, on top.
Tax rate from EIA as of July 2026; pump price is this week’s US Gas Gauge estimate from EIA regional prices (EIA publishes no weekly average for Indiana).
Indiana vs. the other 50 states
Indiana’s state gas tax of 64.5¢ is 30.7¢ above the 33.8¢ average across 50 states and D.C. — it is the 3rd-highest.
Neighboring states' gas tax
| State | State tax | vs. Indiana |
|---|---|---|
| Illinois gas tax | 71.7¢ | +7.2¢ |
| Michigan gas tax | 53.4¢ | −11.1¢ |
| Ohio gas tax | 38.5¢ | −26.0¢ |
| Kentucky gas tax | 26.4¢ | −38.1¢ |
Indiana gas tax, answered
- What is the gas tax in Indiana?
- 64.5¢ a gallon in state taxes and fees; with the 18.4¢ federal tax, 82.9¢ (EIA, July 2026).
- How does Indiana's gas tax compare to other states?
- The 3rd-highest of the 50 states and D.C.; the average is 33.8¢.
- What is the federal gas tax in Indiana?
- The federal gasoline tax is 18.4¢ per gallon in Indiana, the same as in every other state.
- Does Indiana charge local gas taxes too?
- EIA does not flag Indiana as allowing local option taxes.
Related to Indiana gas tax
EIA, “Federal and state motor fuels taxes” (July 2026 (revised August 2026)); how these figures are built.
More Indiana data
Use this data
Download: Gas tax by state, federal + state rates (CSV).
Column definitions, coverage and every file: gas price data. Free to reuse under CC BY 4.0 with credit.
Cite as: US Gas Gauge, “Indiana Gas Tax,” usgasgauge.com/gas-tax/indiana. Source data: U.S. Energy Information Administration.