INDIANAPOLIS (WISH) — Indiana Gov. Mike Braun (R) extended the state’s gas tax holiday Tuesday, a move that will “more than double the savings drivers see at the pump.”
Braun extended his April 8 emergency energy declaration by another 30 days, ensuring it will last into early June.
The extension covers both the 7% gasoline usage tax, currently set at $0.23 per gallon for May, and the gasoline excise tax, which stands at $0.36 per gallon for 2026.
Combined, the suspended taxes will give Indiana drivers a 12.4% discount on the average price of gasoline, the governor’s office says.
“Making life more affordable for Hoosiers will always be my top priority,” Braun said in a release. “Suspending both the gas tax and excise tax gives Hoosiers meaningful relief for the next month.”
Maximum Relief Under Current Authority
The extension marks the outer limit of what Braun can do under his own executive authority. Any further suspension beyond the current declaration would require lawmakers to convene a special legislative session.
The Gasoline Usage Tax had already been suspended under Braun’s original emergency declaration. Tuesday’s action adds the Gasoline Excise Tax to the suspension — a significant increase in relief given that the excise tax rate is more than $0.13 higher per gallon than the usage tax.
Mileage Reimbursement Rate Also Set to Rise
Braun also announced plans to increase the mileage reimbursement rate for state employees who use personal vehicles for work-related travel. Specific details on the new rate will be released once finalized, his office said.
The back-to-back tax suspensions come as fuel prices remain a pressure point for Indiana households and businesses. The governor’s office said affordability remains a central focus of the administration.
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