Iowa: Fuel Excise Taxes
Iowa Cigarette and Fuel Excise Taxes
In addition to (or instead of) traditional sales taxes, gasoline and other Fuel products are subject to excise taxes on both the Iowa and Federal levels. Excise taxes on Fuel are implemented by every state, as are excises on alcohol and tobacco products.
Iowa Gasoline Tax
| Excise: | $0.31 / gallon |
|---|---|
| Addl. Tax: | $0.01 / gallon† |
| Total Tax: | $0.32 / gallon |
Iowa Diesel Tax
| Excise: | $0.33 / gallon |
|---|---|
| Addl. Tax: | $0.01 / gallon† |
| Total Tax: | $0.34 / gallon |
Iowa Gasohol Tax
| Excise: | $0.29 / gallon |
|---|---|
| Addl. Tax: | $0.01 / gallon† |
| Total Tax: | $0.30 / gallon |
† Additional Applicable Taxes: Environmental fee
Other Iowa Fuel Excise Tax Rates
The primary excise taxes on fuel in Iowa are on gasoline, though most states also tax other types of fuel.
Iowa Aviation Fuel Tax
In Iowa, Aviation Fuel is subject to a state excise tax of $0.08/gal (Prior to March 1, 2015) $0.08/gal (March 1, 2015 to June 30, 2015) $0.08/gal (Effective July 1, 2015)
Point of Taxation: Rack (Iowa Code 452A.3.5)
Iowa CNG Tax
In Iowa, CNG is subject to a state excise tax of $0.225/gal(Prior to March 1, 2015) $0.325/gal(March 1, 2015 to June 30, 2015) $0.325/gal (Effective July 1, 2015)
Point of Taxation:
Iowa Jet Fuel Tax
In Iowa, Jet Fuel is subject to a state excise tax of $0.03/gal(Prior to March 1, 2015) $0.05/gal (March 1, 2015 to June 30, 2015) $0.05/gal (Effective July 1, 2015)
Point of Taxation: Rack (Iowa Code 452A.3.5)
Iowa LNG Tax
In Iowa, LNG is subject to a state excise tax of $0.21/gal (Prior to March 1, 2015) $0.31/gal (March 1, 2015 to June 30, 2015) $0.31/gal (Effective July 1, 2015)
Point of Taxation:
Payment of Iowa Fuel Excise Taxes
Payments of fuel excise taxes are made by fuel vendors, not by end consumers, though the taxes will be passed on in the fuel's retail price. Fuel tax is due on the last day of each month for the previous month.
Iowa Fuel Tax Reports
Fuel producers and vendors in Iowa have to pay fuel excise taxes, and are responsible for filing various fuel tax reports to the Iowa government. Click the button below to view details on one IA fuel tax reports.
View Fuel Tax ReportsTax returns are required to be filed by the licensee no later than the last day of the month following the month in which the fuel was withdrawn from the terminal or, in the case of LPG, LNG, or CNG,
Report Due: Last day of the month for monthly filers. The 15 th and the last day of the month for semimonthly filers.
Report Penalties: 10% of return is not filed by the due date and 90% of the correct tax is not timely paid. If return is filed timely but 90% is not timely paid, the penalty is 5%
Payment Due: Same day as the return.
ReportPenalties: 10% of return is not filed by the due date and 90% of the correct tax is not timely paid. If return is filed timely but 90% is not timely paid, the penalty is 5%
Federal Fuel Excise Taxes
The price of all motor fuel sold in Iowa also includes Federal motor fuel excise taxes, which are collected from the manufacturer by the IRS and are used to support the Federal Highway Administration. Federal excise tax rates on various motor fuel products are as follows:
| Gasoline | $0.18.4 per gallon |
|---|---|
| Diesel and Kerosene | $0.242 per gallon |
| Liquefied Petroleum Gas | $0.183 per gallon † |
| Liquefied Natural Gas (LNG) | $0.243 per gallon † |
| Compressed Natural Gas (CNG) | $0.184 per gallon † |
Included in the Gasoline, Diesel/Kerosene, and Compressed Natural Gas rates is a 0.1 ยข per gallon charge for the Leaking Underground Storage Tank Trust Fund (LUST).
† These tax rates are based on energy content relative to gasoline.
What percentage of the cost of gas in Iowa comes from taxes and gas station profit?
The diagram above shows how the prices of an average gallon of gasoline and diesel fuel are broken down among various components, including the cost of the crude oil, refining, distribution / marketing, and taxes. In most areas, state and federal excise taxes amount to about 13% of the cost of a gallon of gas. Gas stations generally only profit a few cents per gallon.
-->
Back to Iowa Sales Tax Handbook Top