Indiana’s gasoline excise tax is increased by a penny, beginning this month.
The 2017 law made an immediate 10-cent raise in the excise tax, but also allowed for a penny-a-year increase through 2024.
That means the excise tax is now 29 cents. That raises the total state and federal taxes that residents pay for a gallon of gas to 61.30 cents.
The Hoosier state now ranks seventh in the U.S. for gas excise taxes. The American Petroleum Institute says we’ve passed Michigan’s 60.82 cents.
Under the new increase, an Indiana driver with a vehicle averaging 20 miles per gallon will pay an extra 5 cents for every 100 miles they drive. It would take 2000 miles for that driver to be taxed a full dollar.
