Fractional quantization can emerge in noncorrelated systems due to the parity anomaly, while its condensed matter realization is a challenging problem. We propose that in axion insulators (AIs), parity anomaly manifests a unique fractional boundary excitation: the half-quantized helical hinge currents. These helical hinge currents microscopically originate from the lateral Goos-Hänchen (GH) shift of massless side-surface Dirac electrons that are totally reflected from the hinges. Meanwhile, due to the presence of the massive top and bottom surfaces of the AI, the helical current induced by the GH shift is half-quantized. The semiclassical wave packet analysis uncovers that the hinge current has a topological origin and its half quantization is robust to parameter variations. Lastly, we propose an experimentally feasible six-terminal device to identify the half-quantized hinge channels by measuring the nonreciprocal conductances. Our results advance the realization of the half-quantization and topological magnetoelectric responses in AIs.