IndyGo is making plans to increase bus fare for the first time since 2009.
Officials with the Indianapolis public transit system told IBJ that the proposed 57% increase—from $1.75 to $2.75 per ride—is necessary to account for inflation and the increased cost of operating buses. The proposal, which includes other tweaks to IndyGo’s payment structure, is set to be introduced to the IndyGo board of directors on Thursday.
For users of IndyGo’s MyKey cards or mobile app, the proposed change would also increase the single-day fare cap from $4 to $6 and the weekly fare cap from $15.75 to $24.75.
It would also eliminate the $2 fee that riders pay for MyKey cards.
The transit agency would also increase fares for IndyGo Access. The smaller buses connect individuals with disabilities to the routes.
The rate for IndyGo Access rides within three-quarters of a mile of an IndyGo route would increase from $3.50 to $5.50. For IndyGo Access routes anywhere in Indianapolis that have been scheduled 24 hours or more in advance, the rate would increase from $7 to $11. And, for same-day IndyGo Access rides, the rate would increase from $10 to $15.
At the same time, IndyGo is moving forward with a planned phase-out of 31-day and 10-day tickets in favor of electronic MyKey cards. The agency laid out plans to stop selling and accepting the passes in a 2019 update to the fare policy. Those tickets and passes will stop being sold at the start of 2026 and drivers will stop accepting them in 2027.
If the board of directors votes to approve the new fare structure at its Aug. 21 meeting, it would take effect Jan. 1, 2026. The agency plans to hold several public meetings over the summer.
IndyGo said the increases are needed due to inflation, rising fuel prices, increased labor and capital costs.
Expenses to operate an average bus in the system rose 58%, from $105 per hour in 2013 to $180 in 2023, according to IndyGo documents.
Fares make up a small portion of IndyGo’s revenue. In 2025, the anticipated $5.9 million total for passenger fares is just 4% of the $146.7 million operating budget. The agency’s revenue comes mostly from property taxes, income taxes and federal and state assistance.
Riders often ride IndyGo buses, particularly on the Red Line and Purple Line, without paying the fare. An IndyGo spokesperson told IBJ that the increase was not spurred by fare evasion and is based on a formula that assumes all documented riders are currently paying their required fare.
Discounts for certain groups are part of IndyGo’s existing policy and will continue. Veterans, government employees, students, IndyGo employees and dependents, IndyGo retirees, IndyGo Access customers, people under the age of 18, people with a disability, and people over 65 with a Medicaid Card are all eligible to ride for free or half-fares.