IFTA Tax Rates in Indiana (2026)

Key numbers at a glance

More interstates meet in Indiana than in almost any other state — I-70, I-80/I-90, I-65, I-69 — so Indiana gallons show up on practically every Midwestern return. The state indexes its fuel excises each July 1, and the July 2026 step-up lifted gasoline from 36 to 37 cents and special fuel (diesel) from 61 to 63 cents per gallon, per the Indiana Department of Revenue's miscellaneous tax rates page. Those rates hold through June 30, 2027.

Indiana also layers on two taxes that confuse newcomers. The state carries a surcharge concept from its 2017 funding law — on the IFTA matrix this appears as a separate Indiana surcharge line, which in Q3 2026 listed $0.63 per gallon on propane, while diesel trucks simply report the all-in $0.63 special fuel rate. And on gasoline there is a use tax of 7 percent of the statewide average retail price — $0.239 per gallon for September 2026 — which the DOR recalculates monthly and collects outside the IFTA system. Add it all up and the Tax Foundation ranked Indiana's combined gasoline tax third highest in the country at roughly 63.1 cents as of July 2026, behind only Illinois. See the IFTA rates by state hub for the national picture.

IFTA tax rates in Indiana

Rates below are the Indiana Department of Revenue figures for July 1, 2026 through June 30, 2027. Rates as of Q4 2026 — confirm the current official IFTA matrix before filing, because Indiana's 2026 gas tax holiday created a mid-year split.

The holiday deserves a paragraph on every Indiana return this year. Governor Braun's energy-emergency suspension zeroed the gasoline and gasohol IFTA rate from July 1 through September 5, 2026 (diesel never stopped being taxed), and the separate use-tax suspension ran into early October. What that means in practice: your Q3 2026 return shows Indiana gasoline gallons at $0.00 for most of the quarter and $0.37 for the last few weeks, while Q4 is back to a flat 37 cents. Pull the exact holiday window from the matrix footnotes before you file Q3.

Fueling strategy: Indiana versus its neighbors

Indiana sits expensive in a mostly cheap neighborhood. Neighbor rates below are from the current IFTA matrix (as of Q4 2026 — confirm the current official IFTA matrix; Kentucky's figures include its use-tax line).

Kentucky is the value play on the southern border — its combined diesel rate runs about 32.5 cents, roughly 30 cents a gallon below Indiana, so crossing the river to fuel before an Indiana leg prepays tax at the cheap rate. Ohio at 47.0 cents also beats Indiana on diesel. Illinois, at 73.8 cents, is the only neighbor worse than Indiana, so never carry an empty tank toward Chicago. And remember the pump-price rule: Indiana's sticker price already includes the 63 cents, so compare price minus tax — and weigh out-of-route miles, which our deadhead miles guide prices out — before detouring for a cheaper state. Run your own route through the IFTA calculator.

How Indiana IFTA affects your filings

Indiana-based carriers file quarterly with the Indiana Department of Revenue's Motor Carrier Services; everyone else carries Indiana lines on their home-state return. The arithmetic: taxable gallons equal Indiana miles divided by truck MPG, times the rate. Drive 500 Indiana miles at 6.5 MPG and you burn 76.9 gallons — 76.9 times $0.63 is $48.46 of Indiana fuel tax. Sum every jurisdiction, subtract the tax embedded in your receipts, and you have your net due or refund.

Indiana-specific filing habits: first, watch the July 1 rate step-up every year — budget the new 63-cent diesel figure from Q3 onward, not Q1's 61 cents. Second, keep your receipts and ELD miles matched to the gallon; audits typically pull four consecutive quarters, and mismatched paperwork is the top finding. Deadlines are the standard ones — April 30, July 31, October 31 and January 31 — with late penalties typically $50 to $100 plus interest per missed quarter, and repeated misses can suspend your license. Fleets that fuel mostly in Kentucky or Ohio should expect a recurring Indiana balance-due line every quarter; that is the tax on miles you burned in Indiana showing up exactly as designed.