Indiana’s gas tax suspension pauses both state-level gasoline taxes and takes roughly 62 cents off every gallon at the pump. Governor Mike Braun put the pause in place through executive orders tied to an energy emergency declaration, starting in April 2026 and currently extended through July 7, 2026. The federal gas tax still applies, and diesel is not included.
Which Taxes Are Paused and What You Save
Indiana normally charges two separate taxes on gasoline, and both are suspended. The first is the gasoline excise tax, a flat 36-cent-per-gallon charge that funds road construction and maintenance. The second is the gasoline use tax, which works like a sales tax on fuel and is recalculated each month based on retail prices.1Indiana Department of Revenue. DOR: Gasoline Use Tax
The governor first suspended the use tax on April 8, 2026, then issued a second order (EO-26-11) on May 6 that added the excise tax. Combined, the two suspensions save about 62.5 cents per gallon, though the exact figure moves slightly month to month because the use tax rate floats with gas prices. The use tax would have been 23.3 cents per gallon in May and 26.5 cents in June; the 36-cent excise tax is fixed.2State of Indiana. Gov Mike Braun Improves Affordability for Hoosiers by Extending Gas Tax Holiday
How Long the Suspension Lasts
The governor can only pause the taxes in 30-day increments under his emergency authority. The current extension runs through July 7, 2026.1Indiana Department of Revenue. DOR: Gasoline Use Tax The governor’s office has described that arrangement as “the longest he can suspend the gas tax on his own authority without a special legislative session.”2State of Indiana. Gov Mike Braun Improves Affordability for Hoosiers by Extending Gas Tax Holiday
What happens after July 7 depends on whether Braun issues another extension or the General Assembly steps in with its own bill. If the emergency declaration lapses and no legislation replaces it, both taxes resume automatically at their normal rates.
What You Should See at the Pump
You don’t have to file anything or show any documentation to get the savings. Both taxes are normally collected from fuel distributors rather than from you directly at the register, so the suspension halts collection higher up in the supply chain and the price drop flows through to retail on its own.
If you think a station is still charging as though the taxes apply, you can contact the Indiana Attorney General’s Office at 317-232-6330 or 800-382-5516. The Department of Revenue has also said that if a distributor mistakenly charged a retailer gas use tax during the suspension, the retailer should work it out directly with the distributor rather than filing a refund claim with DOR.1Indiana Department of Revenue. DOR: Gasoline Use Tax
What the Suspension Does Not Cover
Federal Gas Tax
The federal excise tax on gasoline is still in effect at 18.4 cents per gallon, and only Congress can change it. Of that, 18.3 cents goes to the Highway Trust Fund and 0.1 cent to the Leaking Underground Storage Tank Trust Fund. The rate has not changed since 1993.3Office of the Law Revision Counsel. 26 USC 4081 – Imposition of Tax
Diesel Fuel
The executive orders apply to gasoline only. Diesel is classified as “special fuel” in Indiana and carries its own excise tax of 61 cents per gallon for the fiscal year ending June 30, 2026, which has not been suspended.4Indiana Department of Revenue. DOR: Miscellaneous Tax Rates Diesel buyers also pay a monthly use tax figured the same way as the gasoline use tax, and that continues too.
Electric and Hybrid Vehicle Fees
If you drive an EV or hybrid, the suspension doesn’t reach you, because Indiana collects your road-funding contribution through supplemental registration fees rather than at the pump. Those fees are $221 per year for electric vehicles weighing up to 26,000 pounds and $74 per year for hybrids regardless of weight, and neither has been paused.5International Registration Plan. Indiana Electric/Hybrid-Electric Supplement Fee Updated
How a Governor Can Pause a Tax
Indiana’s emergency management statute, Indiana Code 10-14-3-13, lets the governor suspend “the provisions of any state statute regulating transportation or the orders or rules of any state agency” during an energy emergency when strict compliance would hinder the state’s response.6Indiana General Assembly. Indiana Code 10-14-3-13 – Energy Emergency Proclamation; Additional Duties and Special Powers of Governor Braun’s administration used that provision to suspend the two fuel tax statutes by order rather than through legislation.
The approach is not without dispute. Whether fuel tax laws qualify as statutes “regulating transportation” is a judgment call that has not been tested in court, and previous governors did not use the authority this way. As of mid-2026, no legal challenge has blocked the orders and the Department of Revenue has stopped collecting both taxes at the distributor level.1Indiana Department of Revenue. DOR: Gasoline Use Tax Anything longer or permanent would require the General Assembly to pass a bill, because the state constitution puts taxing authority with the legislature.