Beech Grove city wheel tax

The City of Beech Grove recently approved a $25 wheel tax, which will take effect in January 2027. We’ve received several questions about this change and want to make sure residents have the information they need. Below are answers to some of the most frequently asked questions about the new wheel tax.


  • Beech Grove’s wheel tax is separate from Indianapolis’s wheel tax. Beech Grove residents will pay the City of Beech Grove wheel tax, not the Indianapolis wheel tax.

  • Our wheel tax is significantly lower than Indianapolis’s. Indianapolis’s wheel tax is $100, compared with $25 in Beech Grove.
  •  The Beech Grove Common Council approved the wheel tax by a 4-1 vote.

  •  The decision will help Beech Grove secure significantly more funding for roads and sidewalks. State requirements tie eligibility for Community Crossings grant funding to local wheel tax funding.

  •  To date, the City has received more than $2.6 million in Community Crossing grant funds.

  •  Because Beech Grove has a limited budget, access to these grants is especially important. They allow the City to leverage local dollars and continue making substantial investments in streets, roads and sidewalks without placing the full cost on local taxpayers.

  •  City leaders did not make this decision lightly. No one wants to add another cost for residents. But the $25 wheel tax positions Beech Grove to bring substantially more infrastructure funding back into the community and make local dollars go further.

  •  The wheel tax takes effect in January 2027. Residents will not see the change until then.
Read the Wheel Tax Ordinance