A gas pump is pictured at the Franklin Kroger gas station on Aug. 31, 2024.
Daily Journal File Photo
Hoosiers will pay a little less at fuel pumps in November as Indiana’s gas tax slightly drops again.
The state’s 7% sales tax applied on gasoline purchases will be 17.7 cents a gallon starting Nov. 1, down from 18.3 cents a gallon in October. The 3.4% decrease was announced in a notice Thursday by the Indiana Department of Revenue.
Officials calculated the new rate by using the statewide average pre-tax price for gasoline, which dropped to $2.5349 a gallon during the Sept. 16 to Oct. 15 tracking period. This is down by about 3% from $2.6115 a gallon during the previous period, according to state records.
The sales tax rate is separate from Indiana’s 36 cents a gallon gasoline tax, which is not impacted by the rising price of fuel. The 36 cents a gallon tax last increased by 1 cent on July 1, per Indiana law.
Rising fuel prices also do not affect the federal gas tax of 18.4 cents a gallon. The federal tax has been unchanged since 1993, records show.
Hoosiers will pay 72.1 cents in taxes combined, including 53.7 cents in state taxes, for every gallon of gasoline they purchase in November. This is down by about 0.8% from 72.7 cents in October, records show.
Revenue from Indiana’s gasoline sales tax is earmarked for state and local road construction projects.
