News Release

INDIANAPOLIS — An increase of the gas tax is coming in May.

A memo from the Indiana Department of Revenue reports the state’s gas tax will be 20.4 cents per gallon in May, a 1.5 cent increase from April’s tax.

A formula is used each month by the department to define the gas tax rate. That formula is:

Statewide average retail price per gallon of gas without taxes, multiplied by 7%, then rounded to the nearest $0.001.

During a month period from March to April, it was determined the average retail price per gallon was $2.9202. The formula was then determined for May’s gas tax rate. It was in November 2023 the last time Indiana’s gas tax rate was above 20 cents. The tax reached 29 centers in July and August, 2022.