Gov. Braun extends gas tax holiday into June

INDIANAPOLIS (WISH) — Indiana Gov. Mike Braun on Tuesday extended the state’s gas use tax holiday and suspended the state’s excise tax on gas. Braun extended his April 8 emergency energy declaration by another 30 days, ensuring it will last into early June. The extension covers both the gasoline usage tax, currently set at 23.3 cents per gallon for May, and the gasoline excise tax, which stands at 36 cents per gallon for 2026. The governor’s office said it should give drivers a total discount of about 12.4% on gas. “I think markets are showing that, hopefully, we’re at a level that it will be going down soon, but in the meantime, this guarantees that, here in Indiana, there will be savings,” he said. Maximum Relief Under Current Authority The extension marks the outer limit of what Braun can do under his own executive authority. Any further suspension beyond the current declaration would require lawmakers to convene a special legislative session. House Democrats have been calling for the governor to suspend the excise tax ever since his original order suspending the use tax on April 8. House Minority Leader Phil GiaQuinta, D-Fort Wayne, said he’s glad the governor finally did so. He said his caucus would be willing to consider a special session if needed, but the best way to bring prices down is to end the war with Iran. “More importantly, before we even get to that step, Republican leadership can do something now, and that’s by putting pressure, if you will, by calling the president and saying, look, we’re having a difficult time out here in Indiana,” he said. Mileage Reimbursement Rate Also Set to Rise Braun also announced plans to increase the mileage reimbursement rate for state employees who use personal vehicles for work-related travel. Specific details on the new rate will be released once finalized, his office said. The back-to-back tax suspensions come as fuel prices remain a pressure point for Indiana households and businesses. The governor’s office said affordability remains a central focus of the administration. The cost to the state Budget analysts with the governor’s office said suspending the two taxes would cost INDOT more than $104 million in road funding. Local governments would be out roughly $52.2 million. Braun said INDOT has funding reserves it can draw upon to fund existing road projects, so his decision is unlikely to jeopardize any projects in the short term. He said the bigger concern is how the state’s cash flow affects long-term funding. That’s something he said the legislature will have to tackle during the 2027 budget session.