Indiana drivers are set to face even higher costs at the pump beginning on Wednesday, April 1—as a scheduled increase in the state’s gasoline sales tax collides with a broader surge in fuel prices driven by the U.S. conflict with Iran.
The state’s 7 percent sales tax on gasoline will rise to 17.2 cents per gallon, up 2.1 cents from March, according to the Indiana Department of Revenue. Combined with the state’s 36-cent-per-gallon excise tax and the federal gas tax of 18.4 cents, Hoosiers will pay roughly 71 to 72 cents per gallon in total taxes each time they fill up—among the highest gas taxes in the country.
The increase stems from a formula tied to the average pre-tax price of gasoline, which climbed in recent weeks. While the excise and federal taxes remain fixed—aside from an annual 1-cent increase in Indiana’s excise tax each July—the sales tax fluctuates with fuel prices and typically rises heading into the summer driving season…