Indiana Suspends Gas Tax for 30 Days Amid Price Surge

Hoosiers welcome relief but say more price drops are needed to ease burden

Apr. 9, 2026 at 2:53am

Got story updates? Submit your updates here. ›

A vibrant abstract illustration using bold geometric shapes and primary colors to conceptually represent the economic impact of rising gas prices and the state's response through a temporary tax suspension.Indiana's gas tax holiday aims to provide short-term relief, but Hoosiers say more is needed to offset the sting of soaring fuel costs.Indianapolis Today

Indiana Governor Mike Braun has declared a 30-day gas tax holiday, suspending the state's 17.2 cents per gallon sales tax on gasoline in response to a recent doubling of gas prices across the state. While Hoosiers appreciate the temporary relief, many say they would prefer to see an outright decline in prices at the pump to truly ease the financial burden.

Why it matters

The sudden spike in gas prices has had a significant impact on Indiana residents, with the average price per gallon reaching over $4 in many regions of the state. The gas tax holiday is an attempt by state leadership to provide some short-term relief, but the underlying issue of high fuel costs remains a major concern for Hoosiers struggling with the rising cost of living.

The details

Governor Braun's executive order suspends Indiana's 17.2 cents per gallon sales tax on gasoline for 30 days, but does not apply to diesel fuel. The move makes Indiana the second state after Georgia to implement a gas tax holiday in response to the recent price surge. While some motorists welcome the temporary relief, many say they would prefer to see a more substantial drop in prices at the pump to truly ease the financial burden.

  • On April 8, 2026, Governor Braun announced the 30-day gas tax holiday.
  • The sales tax suspension on gasoline went into effect immediately on April 8, 2026.

The players

Mike Braun

The Republican Governor of Indiana who declared the 30-day gas tax holiday.

Philip Powell

An economics professor at the Indiana University Kelly School of Business who commented on Indiana's ability to provide tax relief due to a budget surplus.

Ginger Curry

The manager of a Circle K gas station in Indiana who welcomed the tax holiday but said prices should drop even further.

Got photos? Submit your photos here. ›

What they’re saying

“It's crazy. I'm mean in the span of two weeks, it doubled. I remember going to my local gas station and it just multiplied by two.”

— Luke Cherry, Student

“I mean I guess it's better but I prefer prices to go down in itself.”

— Martiann Forbes, Student

“No sales tax is going to help people save money. So, I think its going to be very helpful.”

— Tosin Agbaakin, Commuter

“I haven't heard anything about it, but any tax break would help. I mean when you fill up from $25 to $30, (to) well over $80, that's a huge impact.”

— Scott Adkins, Motorist

“A lot of people are upset at the gas prices going up on price. But, they realize they have to have it. They're doing it but doing it at less amounts. I've noticed a lot of people are getting $3, $5, $10 here and there. Hopefully it'll increase the gas sales. I think they should drop it more. Seriously, they should drop 50-60 cents off. Why not?”

— Ginger Curry, Gas Station Manager

What’s next

The gas tax holiday will remain in effect for 30 days, after which the state sales tax on gasoline will be reinstated unless further action is taken by Governor Braun or the state legislature.

The takeaway

While the temporary gas tax relief provides some financial assistance to Hoosiers, the underlying issue of high fuel costs remains a major concern. Many residents say they would prefer to see a more substantial drop in prices at the pump to truly ease the burden on their household budgets during this period of economic strain.