Floyd County drivers to pay new $30 wheel tax starting in 2026

FLOYD COUNTY, Ind. (WDRB) – Drivers in Floyd County will soon see an extra charge when renewing their vehicle registrations.

Beginning Jan. 1, 2026, all passenger vehicle owners in the county will be required to pay a $30 wheel tax. The fee will be collected at the license branch and is considered a user tax.

Floyd County Council President Danny Short said the move is necessary to ensure the county continues receiving state road funding.

“You know, in years past, we've received upwards of $1 million out of that fund,” Short said. “And with SB1, the state mandated that counties must have a wheel tax to participate in that. So not only would we not have the funds from the wheel tax, we would also lose upwards of $1 million per year for roads.”

The state’s Community Crossroads program provides counties with funding for road construction projects, but participation requires a wheel tax.

While the $30 charge applies to passenger vehicles, owners of recreational vehicles, commercial trucks and buses will pay at least $40 per year, depending on the vehicle’s weight.

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Floyd County may consider wheel tax as it faces road funding challenges amid tax reform