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Indiana Drivers To See Bigger Break At The Pump Under Expanded Gas Tax Holiday

By: Charlotte Burke • May 6, 2026 • Indianapolis, IN
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(INDIANAPOLIS) - Indiana Governor Mike Braun is extending the state's gas tax holiday for another 30 days and expanding it to include Indiana's gasoline excise tax.

Braun announced Wednesday that he is extending the state's emergency energy declaration, allowing the continued suspension of Indiana's 7 percent Gasoline Usage Tax through the end of the declaration period.

The governor also announced he is suspending the state's Gasoline Excise Tax, which the administration says will more than double savings at the pump for drivers.

According to the governor's office, the Gasoline Usage Tax currently equals 23 cents per gallon for May, while the 2026 gasoline excise tax rate stands at 36 cents per gallon.

The administration says the combined suspensions amount to about a 12.4 percent discount on the average price of gasoline in Indiana.

In a statement, Braun said making life more affordable for Hoosiers "will always be my top priority."

State law allows the emergency declaration to be extended for up to 30 days at a time without a special legislative session.

Braun also announced plans to increase mileage reimbursement rates for state employees using personal vehicles for work travel. Further details are expected later.