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Indiana’s gas tax will be at its lowest level in over two years



Indianapolis, Indiana – Indiana’s gasoline use tax rate will be the lowest it has been in over two years on January 1.

The Department of Revenue says that, as of January 1, the usage tax—which essentially acts as the state’s fuel sales tax—will drop to 16.7 cents per gallon of gasoline.

This is less than two cents less than what Hoosier drivers paid in December and about five cents less than what they paid in October (21.5 cents), when the rate was at its highest in 2023.

Since June 2021, the tax rate in Indiana is at its lowest point—16.0 cents per gallon—in January.

The average monthly price of normal unleaded gasoline throughout the state serves as the basis for determining Indiana’s gasoline use tax rate.

According to national gasoline price tracker GasBuddy, Indiana’s average price for regular unleaded has decreased by 98 cents since mid-August, when it reached its highest point of the year ($3.910/gallon).

With effect from January 1, the total combined state and federal taxes on a gallon of gasoline in Indiana will be 69.1 cents.

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