Fare Proposal

IndyGo hasn’t raised fares in 15+ years. Since then, inflation has eroded the value of the $1.75 fare. The proposed rate of $2.75 is based primarily on the need to adjust for inflation and the fact that the costs to provide the service have continued to climb.

IndyGo has determined that the most effective process that is least impactful to riders is to implement the proposed fare increase all at once. Once complete, the agency can realize the most impact and riders can make the one-time adjustment without multiple disruptions to the process.

IndyGo is proposing to raise fares because operating costs have risen significantly due to inflation, fuel prices and increased labor and capital costs. Despite these rising expenses, IndyGo has not raised fares in more than 15 years. Without a fare increase, IndyGo could face difficult decisions like reducing service or deferring upgrades. Raising fares is one of the steps needed to ensure we can maintain reliable service and continue investing in and maintaining a strong transit network.

There is never a good time to increase fares. By proposing this increase now, IndyGo can see more modest rate increases in the future.

Key events shaped the timing of this proposal. In 2016, fare changes were set aside following the voter-approved transit referendum, which prioritized service expansion. In 2019, focus shifted to the successful launch of the Red Line. During the COVID-19 pandemic, IndyGo paused fare discussions to ensure continuity of service and prioritize health and safety. Now, with rising costs and a need for long-term financial sustainability, IndyGo is engaging the community in a transparent process to consider this fare proposal. We’re committed to minimizing the burden on riders while maintaining the quality and reliability of service that our community depends on.

The 2016 referendum, and the money raised through that tax increase, is and was intended to fund the improvements outlined in the Marion County Transit Plan, which includes increased local route service and implementation of three bus rapid transit lines. This includes capital and operating costs, and the costs to operate that increased service including labor costs of additional operators and additional buses. It does not include estimates for the administrative and maintenance costs associated with the Marion County Transit Plan. In the eight years since IndyGo started receiving the revenue resulting from the referendum, IndyGo has made substantial strides toward realizing the vision of the Marion County Transit Plan, holding the fare rate at $1.75 until now.

While this proposed fare increase isn’t tied to new routes or expanded services, it plays a vital role in sustaining the transit system our community depends on every day. The additional revenue will help IndyGo:

• Keep buses running reliably by covering rising costs for fuel, maintenance and parts.
• Support the frontline workforce – our operators, mechanics and service staff – who deliver safe, daily service.
• Stabilize IndyGo’s finances to avoid more disruptive changes in the future.
• Maintain fare programs like fare-capping, free and discounted passes and half-fare options.

This adjustment ensures we can protect what matters most to riders: dependable service, safe trips and a system that works for everyone.

As part of the 2019 Fare Policy update, IndyGo began phasing out the 10-trip and 31-day paper tickets to support the transition to the MyKey electronic fare system and simplify the overall fare structure. This shift is part of the fare policy update adopted in 2019.

Paper-based passes are more expensive to produce, harder to manage and less flexible for riders. MyKey offers a more convenient option by allowing riders to pay as they go and automatically earn daily and weekly passes through fare capping—eliminating the need for large upfront payments.

This change supports IndyGo’s long-term goals of modernizing the system, improving efficiency and ensuring that all riders have access to flexible and affordable fare options.

July 1, 2026.

July 1, 2027.

The proposed rate is based primarily on the need to adjust for inflation and the fact that the costs to provide the service have continued to climb. IndyGo is actively exploring strategies to reduce the burden on low-income IndyGo Access riders.

Persons with a disability, persons age 65 and older, and persons 18 or younger will continue to only pay half fare. Persons who are IndyGo Access clients also qualify for half-fare trips on our fixed route service. Additionally, veterans will continue to ride fare free on our fixed route service.

The MyKey system offers fare capping, allowing riders to “earn” free rides, and daily or weekly passes as they ride and eliminating the need to prepay large sums upfront (like for a 31-day ticket). This is seen as more equitable, especially for lower-income riders who may not be able to afford a multi-day pass all at once. Additionally, half fares remain in place for seniors, people with disabilities and youth. IndyGo also offers free fare to several groups, including veterans.

IndyGo will host a series of virtual and in-person public meetings throughout the city, open houses at the Julia M. Carson Transit Center and onboard bus engagement with our Transit Ambassadors. For a detailed list of opportunities to learn more and provide feedback, please visit IndyGo.net/value-of-transit. These are alongside a formal public hearing during the June Board meeting where residents will have a chance to speak directly to the Board.

1. IndyGo plans to take a multi-pronged approach to ensure riders understand the new fare structure and ticketing options, especially as it phases out old fare products (like 10-trip and 31-day tickets) and rolls out new rates.
2. IndyGo will launch a communications and marketing effort to explain the proposed fare increases, the differences between MyKey and traditional paper fare, and how the fare-capping system can save riders money. This campaign will include briefings with our paratransit partners, limited English proficiency partners and the IndyGo Foundation as they prepare to share with their bus pass grant partners, announcements and digital signage on buses and at the CTC, advertising, social media and local media coverage, among other things. Educational materials will be translated into multiple languages and formatted for people with limited English proficiency and riders with disabilities (e.g., large print, audio).
3. IndyGo staff will also be available for virtual meetings, in person outreach at the Julia M. Carson Transit Center, public meetings at community centers around Marion County, and pop-ups at neighborhood meetings and community events.
4. More details about community outreach and education events will be provided in the coming months.