Governor Braun extends gas tax holiday into June

INDIANAPOLIS - Indiana Governor Mike Braun has announced the extension of the state's gas tax holiday, a decision that will more than double the savings motorists experience at fuel stations across the state. The Republican governor extended his April 8 emergency energy declaration by an additional 30 days, ensuring relief for drivers will continue into early June.

The extension encompasses two critical components of Indiana's fuel taxation structure. The 7% gasoline usage tax, currently assessed at $0.23 per gallon for May, remains suspended. Additionally, the gasoline excise tax, which stands at $0.36 per gallon for 2026, has now been added to the suspension. This dual suspension represents a significant escalation in relief efforts, as the excise tax rate exceeds the usage tax by more than $0.13 per gallon.

According to the governor's office, the combined tax suspensions will deliver a 12.4% discount on the average price of gasoline for Indiana drivers. This translates to meaningful savings for households and businesses grappling with persistent fuel costs.

The current extension represents the maximum relief Governor Braun can authorize under his executive authority. Any continuation of the tax suspension beyond the current declaration would necessitate convening a special legislative session, requiring lawmakers to return to the Statehouse to approve further action.

In a related development, Governor Braun announced plans to increase the mileage reimbursement rate for state employees who utilize personal vehicles for work-related travel. The governor's office indicated that specific details regarding the new reimbursement rate will be released once the figures have been finalized.