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Indiana gas tax on the rise in November after two months of decline

By Brandon Smith, IPB News | Published on in Economy, Government, Politics, Transportation
Indiana is one of the few states in the country that charges sales tax on gasoline. (FILE PHOTO: Samantha Horton/IPB News)

Hoosiers are paying more at the gas pump in state taxes in November.

That’s after the tax decreased the last two months, down from a record high in August.

This month, about 74 cents of what you pay for every gallon at the pump is because of taxes. Federal taxes account for about 18 cents, with 56 cents coming from the state. More than half of that is a fixed price – the state gasoline tax, currently set at 33 cents per gallon.

It’s the other state tax that changes, month to month. Indiana is one of the few states that charges sales tax on gas. And that amount per gallon is based on the average gas price the previous month. So, in November, the sales tax on gas is 23 cents per gallon.

That’s up one cent from October and five cents higher than it was a year ago. But it’s still lower than August, which saw the highest sales tax on gas since 2014 – 29.4 cents per gallon.

Statehouse Democrats are again calling for Indiana to temporarily suspend its gas taxes, as they’ve been doing since March. And they’re criticizing Republicans for rejecting that call.

READ MORE: Indiana Democrats renew push for gas tax suspension amid record high prices

GOP leaders have long argued suspending gas taxes would provide relief to people passing through Indiana who may not need it. They also say suspending gas taxes would hurt long-term road funding.

Republicans did put a temporary cap on the sales tax on gas during this summer’s special session. Through June of 2023, the gasoline sales tax rate cannot be more than 29.5 cents per gallon.

Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.