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When FAQs

when does the indiana gas tax break end

when does the indiana gas tax break end

Many Indiana drivers are asking when the state's gas tax break will end after enjoying lower fuel prices for several months.

The short answer is that Indiana's temporary gas tax holiday is scheduled to end on August 6, 2026, with the energy emergency expiring the following day. Unless lawmakers approve additional action, the suspended taxes will return after that.

Why Is This Topic Trending?

The question started trending because many drivers noticed Indiana has some of the lowest gas prices in the country during the summer.

As the tax holiday gets closer to ending, people are searching to know whether they should fill up before the suspension expires and whether Governor Mike Braun plans another extension.

The topic also became popular because this has been described as the governor's final extension under his emergency authority. Any further gas tax relief would require action from the Indiana General Assembly instead of another executive order.

What Was the Indiana Gas Tax Break?

The gas tax break was introduced after fuel prices increased sharply during 2026.

Governor Mike Braun temporarily suspended two state fuel taxes:

  • Indiana Gasoline Use Tax
  • Indiana Gasoline Excise Tax

The goal was to reduce the price drivers pay at the pump and give temporary relief while fuel prices remained high. The taxes are collected from fuel distributors, but the savings are expected to flow through to consumers when gasoline reaches service stations.

When Does It Officially End?

According to the Indiana Department of Revenue, the suspension runs:

  • Gas Use Tax: April 8 through August 6, 2026
  • Gasoline Excise Tax: May 6 through August 6, 2026

After August 6, both taxes are scheduled to return unless new legislation is passed.

Will Gas Prices Go Up?

Many experts expect prices could increase after the tax holiday ends.

Once the suspended taxes return, fuel distributors will again pay those state taxes, which can increase pump prices.

Exactly how much prices change will also depend on crude oil prices, supply, demand and market competition. If oil prices fall, drivers may not notice the full increase. If oil prices rise, the increase could become more noticeable.

Can the Tax Break Be Extended Again?

Probably not under the governor's current emergency authority.

Governor Braun has already described the July extension as the final one available through the emergency declaration. Continuing the tax holiday beyond early August would likely require lawmakers to return and approve new legislation.

Should Drivers Fill Up Before It Ends?

Some drivers are planning to fill their tanks before the tax suspension expires, hoping to save a little money before state taxes return.

However, gasoline prices change every day because of many factors, including oil markets, refinery production and local competition. The actual difference at individual gas stations may vary depending on how quickly stations receive new fuel supplies after the tax holiday ends.

For now, Indiana's gas tax break is scheduled to end on August 6, 2026, and unless state lawmakers take further action, normal fuel taxes are expected to return after that.

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