INDIANAPOLIS – You won’t see much of a difference in Indiana’s gas tax next month.
According to the Indiana Department of Revenue, the gasoline use tax calculation for June comes out to 24 cents a gallon. That’s virtually the same as May’s rate, which was 24.1 cents.
Indiana’s gasoline use tax has steadily increased since February 2021, only showing month-to-month decreases during three months (October 2021, January 2022 and February 2022), according to a notice from the Department of Revenue.
The gasoline use tax is determined by a formula that takes the statewide average retail price for a gallon of gas (minus applicable taxes), multiplies it by 7% and then rounds it to the nearest one-tenth of a percent.
That means the gasoline use tax fluctuates based on gas prices. With the retail price of gas averaging $3.4301 from April 16, 2022, through May 15, 2022, that calculation came out to 24 cents.
Indiana drivers also pay an additional state tax of about 32 cents a gallon when they fuel up, with the money going toward infrastructure projects. When factoring in both, drivers can expect to pay a total of 56 cents per gallon in state taxes.
There is also a federal gas tax of about 18 cents, although the state doesn’t have any control over that.
Indiana Democrats are pushing for Indiana to suspend the gas tax to give drivers some relief. Former Gov. Frank O’Bannon did that in 2000, but Gov. Eric Holcomb said changes in state law prevent him from doing so right now.
“For an Indiana governor to suspend the gas tax through a declaration of an energy emergency, the state must have an existing or projected energy shortfall that would jeopardize life, health and property,” Holcomb said in a statement. “We have not met that threshold.”
Drivers will see an increase in the gas tax in July—and it could be a double whammy. The state is already raising the infrastructure tax by 1 cent and Indiana will likely see a higher gasoline use tax based on all-time high fuel prices.
According to AAA, the current average price for a gallon of regular is $4.610 in Indiana. A week ago, prices were $4.413. Going back a month, the average was $3.927.
Thursday’s average price of $4.616 marked the highest recorded average price ever, according to AAA.