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State gas sales tax set to increase as gas prices continue to climb

WFIU | By Eddie Stewart
Published March 27, 2026 at 3:46 PM EDT
Indiana is one of only about a dozen states that imposes a sales tax on gasoline. That rate is calculated each month, based on the statewide average gas price.
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Indiana is one of only about a dozen states that imposes a sales tax on gasoline. That rate is calculated each month, based on the statewide average gas price.

Indiana drivers will soon be paying a few more cents per gallon in taxes at the pump.  

Indiana’s 7 percent sales tax on gasoline will ring in at 17.2 cents a gallon on April 1.  

Gas sales tax prices had been trending down since October, when drivers paid 18 cents a gallon. March’s sales tax came in at 15.3 cents.  

Indiana’s gas sales tax reached a high of 29 cents a gallon in August 2022 after the start of the Russia-Ukraine war months earlier. 

The sales tax rate is calculated from the average pre-tax cost of gasoline the month before. Revenue from the sales tax is used for road construction projects.  

Hoosiers pay some of the highest gas taxes in the country. Drivers in Indiana will pay a total of about 72 cents per gallon in tax at the pump through April.  
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