On April 8, 2026, Gov. Mike Braun declared an energy emergency and suspended the collection of the Gasoline Use Tax, which hit 17.2 cents per gallon in April, for 30 days.
In accordance with that executive order, the Indiana Department of Revenue will stop collecting Gasoline Use Tax from April 8 through May 8, 2026.
“I am declaring a gas tax holiday to give Hoosiers relief from the pain at the pump from high gas prices. Affordability is my top priority,” Braun said in a press release.
There are three taxes applied to fuel: federal gas tax, Indiana excise tax, and gas use tax.
The Gasoline Use Tax on gasoline and gasohol fuels is considered the equivalent of the 7% sales tax typically collected by retailers and eliminates the requirement for retail merchant to collect the sales tax on gasoline sales.
According to a press release, Braun called on gasoline retailers to deliver the gas tax relief directly to consumers and noted that the state will be “patrolling the pumps” by monitoring prices to ensure that savings are delivered to Hoosiers.
According to the release, Braun also called on Attorney General Todd Rokita to enforce protections from price gouging by retailers.
Rokita announced that his office will actively monitor fuel prices across the state to prevent price gouging and ensure drivers receive the full benefit of the relief following the temporary suspension of Indiana’s gas tax.
“If a consumer suspects that a gas station in Indiana is still charging tax during the suspension, they should file a consumer complaint with our office,” Rokita said in a statement.
Hoosiers have been subject to high fuel prices as high as $4.19 per gallon for regular as of April 13; the average price was $3.12 in 2025 according to AAA data. Rising gas prices coupled with the elevated cost of utilities, services and groceries are among the financial stressors for Hoosier families in 2026.
While many Hoosiers may see this development as a step in the right direction towards affordability in the state, some local political leaders say that this act serves to fix a problem that was created by the same people.
House Democratic Leader Phil GiaQuinta (D-Fort Wayne) issued the following statement:
“I want to be clear: House Democrats support this suspension, but Gov. Braun and Statehouse Republicans are only cleaning up a mess that they helped create. Hoosiers are tired of unstrategic and unfocused foreign wars that cost American lives, drive up gas prices and raise the cost of living.”
In 2022, Statehouse Democrats called for the suspension of the gas tax starting in March when the tax hit 18.2 cents per gallon and peaked at 29.4 cents in August. Statehouse Republicans refused to suspend the tax then.
“This isn’t leadership, it’s a last-minute scramble to keep up the Indiana GOP’s charade of being the ‘fiscally responsible’ party,” GiaQuinta said.
Following the 30 -day tax suspension, Hoosiers will have to hold their breath to see if the gas tax suspension will be extended or if prices at the pump will continue to rise.
For more information visit in.gov/dor/.
Contact Staff Writer Malik Simon at 317-762-7847.
Malik Simon is a Staff Writer for the Indianapolis Recorder Newspaper. Originally from Memphis, TN, he graduated from Mississippi Valley State University with a Bachelor of Arts in General Studies concentrating on journalism. Before joining the Recorder, he wrote for the Devil’s Gazette newspaper at MVSU and served as a freelance content and video editor. He seeks to use media to help communities flourish through literacy and factual reporting.
