The Indianapolis Public Transportation Corp. (IndyGo) unveiled a proposed fare adjustment and fare product restructuring as part of its broader initiative to modernize its payment system and improve rider experience. 

The changes are designed to enhance operational sustainability, promote equity, and align with the agency’s long-term shift to its electronic fare payment platform, MyKey.

Pending public input and final approval by the IndyGo board, the proposed fare changes would take effect on Jan. 1, 2026, and mark the first fare increase since 2009. 

Agency officials cite rising fuel, labor, and vehicle maintenance costs as the proposal's primary drivers. The proposal aims to preserve service quality and invest in infrastructure and workforce needs.

“A modern, accessible transit system is the backbone of a thriving city,” said Jennifer Pyrz, IndyGo president and CEO. “We’re committed to building a network that works for everyone, and these updates are critical to ensuring our system remains reliable and equitable for all riders.”

Fare Adjustment Highlights

The proposal includes a base fare increase for fixed-route services from $1.75 to $2.75 and paratransit fare changes ranging from increases of $2 for area trips, $4 for premium trips, and $5 for same-day trips. 

Despite the increases, IndyGo will continue to offer several fare equity features, including free two-hour transfers; daily and weekly fare capping; half-price fares for seniors, youth, and people with disabilities; and free rides for veterans and select other eligible populations.

Transition Away from Paper Fare Media

If the proposal is approved, IndyGo will phase out the legacy paper fare products to support the transition to MyKey. 

The changes build on the agency’s 2019 fare policy update, which began with discontinuing the seven-day paper pass.

The MyKey system is intended to provide more flexible and equitable payment options through account-based fare capping and “pay-as-you-go” functionality. This model reduces the burden of upfront costs and enables riders to earn fare discounts through accumulated usage rather than advance purchases.

IndyGo officials say public engagement will play a central role in the process. A citywide education and outreach campaign will precede the final board decision, emphasizing reaching low-income riders, limited English proficiency communities, and youth, seniors, and ADA passengers.

The campaign will include pop-up events, community sessions, and virtual information opportunities throughout Marion County.

The proposed fare adjustment reflects a growing trend among transit agencies nationwide to modernize fare collection and ensure long-term financial viability. By aligning its fare structure with evolving technology and economic realities, IndyGo said it aims to provide a more consistent and inclusive experience for all users of its system.