State Tax Day - Current, S.5, Indiana—Sales and Use Tax: Suspension of Gasoline Use Tax Discussed, (Apr 23, 2026)

Gov. Mike Braun issued Executive Order 26-09, which declared an energy emergency to deal with the high prices of gas in Indiana, and suspended the gasoline use tax on motor fuel effective April 8, 2026.

Gasoline Use Tax Suspended Effective April 8, 2026, Through May 8, 2026

Although the suspension is scheduled to end on May 8, 2026, the Executive Order states that in 30 days from April 8, 2026, the governor will reevaluate the situation and determine whether there is a continued need for the energy emergency. This suspension entails various temporary changes, both for the Indiana Department of Revenue and for distributors and retailers of gasoline. Gasoline use tax is imposed when a distributor, refiner, or terminal operator sells gasoline for delivery to a retail merchant. A retail merchant then includes that amount in the price that they sell at the pump. Unlike sales tax, the gasoline use tax is not a retail level tax.

Additional Information and Instructions

Instructions for the temporary changes have been issued through INTIME to licensed distributors. Additional information and instructions are found on the gasoline use tax page on the department’s website: Gasoline Use Tax.

This notice will be updated should the suspension be extended. Sales Tax Information Bulletin #83, which provides the department’s guidance on gasoline use tax, may also be of interest.

The current gasoline use tax rate can be found in Departmental Notice #2. The rate will continue to be updated regardless of whether a suspension remains in effect.

Departmental Notice #45, Indiana Department of Revenue, April 2026, ¶404-206