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Braun adds Indiana gas tax suspension on top of sales tax break

A gas pump terminal with a green pump on the left and black pump on the right. The prices read $5.899 for diesel gas, $4.199 for unleaded, $4.769  for unleaded plus and $5.249 for unleaded premium.
Niki Kelly
/
Indiana Capital Chronicle
An Indianapolis gas pump shows prices over $4 a gallon on Tuesday, April 7, 2026.

Gov. Mike Braun not only extended the suspension of the sales tax on gasoline another 30 days Wednesday — he paused the state gas tax, as well.

The latter is 36 cents per gallon, meaning Hoosier motorists will save 59.3 cents a gallon for the next month.

The 30-day tax suspensions, combined, are expected to cost state coffers $104 million and local units $52 million. Braun’s initial 30-day suspension of the 7% sales tax on gasoline came at a separate $50 million revenue cost.

“Making life more affordable for Hoosiers will always be my top priority,” Braun said Wednesday. “Suspending both the gas tax and excise tax gives Hoosiers meaningful relief for the next month.”

The current 30-day sales tax suspension was set to end May 8.

Braun said the energy emergency will give Hoosiers a 12.4% discount on the average price of gasoline in Indiana.

When Braun took action in April, the average cost for a gallon of gas in Indiana was $4.14, according to AAA. That price has now risen to $4.76.

Braun also announced Wednesday that he will increase the mileage reimbursement rate for state employees who utilize their own vehicles for work-related travel. Details on that increase will be shared once confirmed by the governor’s office.

This story will be updated.

Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.

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