The gasoline use tax is again increasing in Indiana.

On July 1, the tax will go up to 20.5 cents per gallon. The use tax has increased each of the last five months.

The use tax is a 7% tax based on the average cost of gasoline in the previous month. Indiana gasoline excise tax will also go up one penny in July to 34 cents per gallon. The increase is automatic and annual under state law.

Republican lawmakers across the Hoosier state approved extending the annual once-cent increase this past spring which will continue through 2027. Starting July 1st, Indiana drivers will pay 72.9 cents per gallon in combined state and federal taxes on gasoline. The Indiana use tax has increased 3.3 cents per gallon since February and has increased each of the last five months.

Here is a breakdown of the increases in 2023…

January 1, 2023 January 31, 2023 19.9 cents

February 1, 2023 February 28, 2023 17.2 cents

March 1, 2023 March 31, 2023 18.6 cents

April 1, 2023 April 30, 2023 19.0 cents

May 1, 2023 May 31, 2023 20.3 cents

June 1, 2023 June 30, 2023 20.4 cents

July 1, 2023 July 31, 2023 20.5 cents