Indiana's Gas Tax Holiday Ends August 6

Indiana's gas tax holiday will expire on August 6, ending the suspension that has saved drivers approximately 62 cents per gallon. Under state law, the governor can only suspend the tax for 120 days without legislative approval, making this the final expiration.

The Indiana State Board of Finance has approved $121 million in reimbursements covering April and May gas tax collections. Of that total, nearly $38 million goes directly to counties, cities, and towns to offset the revenue they lost during the suspension. Additional reimbursement requests for June through August will be presented in coming months, with all reimbursements expected to be completed by November 1.

Governor Braun said the state's approximately $2 billion budget surplus made the reimbursements possible but cautioned that infrastructure construction costs remain elevated. Steel and concrete costs have "almost doubled" compared to pre-inflation levels, meaning road funding "does not stretch as far," he said.

After August 6, residents will see gas prices increase by roughly 62 cents per gallon as the tax returns to its full rate. Local road funding will resume its normal revenue stream, though Blackford County and its municipalities are still awaiting reimbursements for June through August collections.

Source: WDRB (July 24, 2026)