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Braun Extends Indiana Gas Tax Until August 7

By: Charlotte Burke/Mike Stiles • July 3, 2026 • Indianapolis, IN.
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(photo courtesy of Pixabay)

(INDIANAPOLIS) - Indiana Governor Mike Braun is extending the state's gas tax suspension through August 7.

The move continues the suspension of Indiana's 7% Gasoline Usage Tax and the Gasoline Excise Tax, keeping an estimated 60-cent discount at the pump for drivers across the state.

Braun first declared an energy emergency in April, allowing him to issue emergency relief for 120 days without calling a special session of the Indiana General Assembly. He initially suspended the state's gasoline usage tax in April, then added the gasoline excise tax in May and June.

This latest extension would be the last time Braun can suspend both taxes without approval from state lawmakers in a special session.

Braun says affordability is his top priority and says the extension is meant to make life more affordable for Hoosier families.

Braun's office previously announced plans to reimburse local governments for revenue lost during the extended gas tax holiday. Local governments are expected to be made whole no later than November 1.

GasBuddy's Patrick De Haan says unless state lawmakers act to extend the gas tax holiday in August, prices could rise sharply after the suspension ends. De Haan said the state is foregoing about $5 million in funding each day the tax is suspended.