California: Fuel Excise Taxes
California 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 California and Federal levels. Excise taxes on Fuel are implemented by every state, as are excises on alcohol and tobacco products.
California Gasoline Tax
| Excise: | $0.30 / gallon |
|---|---|
| Addl. Tax: | $0.05 / gallon† |
| Total Tax: | $0.35 / gallon |
California Diesel Tax
| Excise: | $0.13 / gallon |
|---|---|
| Addl. Tax: | $0.23 / gallon† |
| Total Tax: | $0.36 / gallon |
California Gasohol Tax
| Excise: | $0.30 / gallon |
|---|---|
| Addl. Tax: | $0.05 / gallon† |
| Total Tax: | $0.35 / gallon |
† Additional Applicable Taxes: Includes prepaid sales tax
Other California Fuel Excise Tax Rates
The primary excise taxes on fuel in California are on gasoline, though most states also tax other types of fuel.
California Alternative Fuel Tax
In California, Alternative Fuel is subject to a state excise tax of Section 8651, an excise tax is imposed for the use of "fuel" at eighteen cents ($0.18) per gallon. Section 8651.5, $0.06 per each gallon of liquefied petroleum gas used. Section 8651.6, effective January 1, 2015, $0.0887 for each 126.67 cubic feet or 5.66 pounds, of compressed natural gas used, measured at standard pressure and temperature. Section 8651.6, effective January 1, 2015, $0.1017 for each 6.06 pounds of liquid natural gas used. Section 8651.8, The excise tax imposed upon ethanol or methanol containing not more than 15 percent gasoline or diesel fuels is one-half the rate prescribed by Section 8651 for each gallon of fuel used. The excise tax imposed on compress natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG) as vehicle fuels can be paid through an annual flat-fee rate sticker tax based on the following gross vehicle weight rating: Unladen Weight Fee All passenger cars and other vehicles 4,000 pounds (lbs.) or less $36 More than 4,000 lbs. but less than 8,001 lbs. $72 More than 8,000 lbs. but less than 12,001 lbs. $120 12,001 lbs. or more $168
Point of Taxation: See Motor Vehicle Fuel above.
California Aviation Fuel Tax
In California, Aviation Fuel is subject to a state excise tax of $0.18 per gallon.
Point of Taxation: Motor Vehicle Fuel Tax Law, R&T Code Section 7362 -Rack Removal? The tax is imposed on the removal of motor vehicle fuel in California from a terminal if the motor vehicle fuel is removed from the rack.
California Jet Fuel Tax
In California, Jet Fuel is subject to a state excise tax of $0.02 per gallon
Point of Taxation: Motor Vehicle Fuel Tax Law, R&T Code Section 7392 "Rate of Tax" The tax is imposed upon every aircraft jet fuel dealer at the rate of $0.02 for each gallon the aircraft jet fuel sold to an aircraft jet fuel user or used by the dealer as an aircraft jet fuel user. An aircraft jet fuel user means any person who uses aircraft jet fuel for the propulsion of an aircraft in California except the following: (a) A common carrier by air engaged in the business of transporting persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the authority of the laws of California, of the United States or of any foreign government. (b) A person engaged in the business of constructing or reconstructing by manufacture or assembly of completed aircraft, or modifying, overhauling, repairing, maintaining, or servicing aircraft. (c) The armed forces of the United States.
Payment of California 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. Payment on annual flat rate tax is due only once a year.
California Fuel Tax Reports
Fuel producers and vendors in California have to pay fuel excise taxes, and are responsible for filing various fuel tax reports to the California government. Click the button below to view details on seventeen CA fuel tax reports.
View Fuel Tax ReportsAircraft Dealer Jet Fuel Tax Return, BOE-501- MJ
Report Due: Last day of the month following the monthly period to which it relates
Report Penalties: 10% failure to file, section 10% failure to file when paying by EFT, section 7659.9(d)
Payment Due: Last day of the month following the monthly period to which it relates
ReportPenalties: 10% failure to file, section 10% failure to file when paying by EFT, section 7659.9(d)
PaymentPenalties: 10% failure to pay, section 7655(a) 10% failure to pay by EFT, section 7659.9(e)(f)
Claim for Refund on Nontaxable Sales of Exports of Diesel Fuel, BOE-770-DZ
Diesel Fuel Claim for refund on Nontaxable Uses, BOE-770-DU
Diesel Fuel Tax Claim for Refund - Sales to Ultimate Purchasers, BOE-770-DVW
Diesel Fuel Ultimate Vendor Report/Claim for Refund, BOE-770- DV
Exempt Bus Operator Diesel Fuel Tax Return, BOE-501-DB
Report Due: Last day of the month following the monthly period to which it relates
Report Penalties: 10% failure to pay, section 60207(a) 10% failure to pay by EFT, section 60250(d)
Payment Due: Last day of the month following the monthly period to which it relates
ReportPenalties: 10% failure to pay, section 60207(a) 10% failure to pay by EFT, section 60250(d)
PaymentPenalties: 10% failure to pay, section 60207(a) 10% failure to pay by EFT, section 60250(e)(f)
Exempt Bus Operator Use Fuel Tax Return, BOE-501-AB
Report Due: Last day of the month following the quarterly period in which the taxable use of the fuel occurs
Report Penalties: 10% failure to file, section 60207(b) 10% failure to file when paying by EFT, section 60250(d)
Payment Due: Last day of the month following the quarterly period in which the taxable use of the fuel occurs
ReportPenalties: 10% failure to file, section 60207(b) 10% failure to file when paying by EFT, section 60250(d)
PaymentPenalties: 10% failure to pay, section 60207(a) 10% failure to pay by EFT, section 60250(e)(f)
Government Entity Diesel Fuel Tax Return, BOE-501-DG
Report Due: Last day of the month following the monthly period to which it relates
Report Penalties: 10% failure to pay, section 60207(b) 10% failure to pay by EFT, section 60250(d)
Payment Due: Last day of the month following the monthly period to which it relates
ReportPenalties: 10% failure to pay, section 60207(b) 10% failure to pay by EFT, section 60250(d)
PaymentPenalties: 10% failure to pay, section 60207(a) 10% failure to pay by EFT, section 60250(e)(f)
IFTA Quarterly Fuel Use Tax Report
Report Due: Last day of the month following the quarterly period to which it relates
Report Penalties: A penalty of $50 or 10% of delinquent taxes, whichever is greater is imposed for failure to file a return or late filing
Payment Due: Same
ReportPenalties: A penalty of $50 or 10% of delinquent taxes, whichever is greater is imposed for failure to file a return or late filing
PaymentPenalties: A penalty of $50 or 10% of delinquent taxes, whichever is greater for underpayment of the taxes due
Interstate User Diesel Fuel Tax Return, BOE- 501-DI
Report Due: Last day of the month following the monthly period to which it relates
Report Penalties: 10% failure to file, section 60207(b) 10% failure to file when paying by EFT, section 60250(d)
Payment Due: Last day of the month following the quarterly period in which the taxable use of the fuel occurs
ReportPenalties: 10% failure to file, section 60207(b) 10% failure to file when paying by EFT, section 60250(d)
PaymentPenalties: 10% failure to pay, section 60207(a) 10% failure to pay by EFT, section 60250(e)(f)
Petroleum Carrier Report, BOE-506-PC
Report Due: Last day of the month following the monthly period to which it relates
Supplier of Diesel Fuel Tax Return, BOE-501- DD
Report Due: Last day of the month following the monthly period to which it relates
Report Penalties: 10% failure to pay, section 60207(a) 10% failure to pay by EFT, section 60250(d)
Payment Due: Last day of the month following the monthly period to which it relates
ReportPenalties: 10% failure to pay, section 60207(a) 10% failure to pay by EFT, section 60250(d)
PaymentPenalties: 10% failure to pay, section 60207(a) 10% failure to pay by EFT, section 60250(e)(f)
Supplier of Motor Vehicle Fuel Tax Return, BOE-501-PS
Report Due: Last day of the month following the monthly period to which it relates
Report Penalties: 10% failure to file, section 7655(b) 10% failure to file when paying by EFT, section 7659.9(d)
Payment Due: Same as report's due date
ReportPenalties: 10% failure to file, section 7655(b) 10% failure to file when paying by EFT, section 7659.9(d)
PaymentPenalties: 10% failure to pay, section 7655(a) 10% failure to pay by EFT, section 7659.9(e)(f)
Terminal Operator Information Report, BOE-506-PO
Report Due: Last day of the month following the monthly period to which it relates
Train Operator Information Report, BOE-506-PT
Report Due: Last day of the month following the monthly period to which it relates
User Use Fuel Tax Return, BOE-501-AU
Report Due: Last day of the month following the quarterly period in which the taxable use of the fuel occurs
Report Penalties: 10% failure to file, section 8876(b) 10% failure to file when paying by EFT, section 8760(d)
Payment Due: Last day of the month following the quarterly period in which the taxable use of the fuel occurs
ReportPenalties: 10% failure to file, section 8876(b) 10% failure to file when paying by EFT, section 8760(d)
PaymentPenalties: 10% failure to file, section 8876(a) 10% failure to pay by EFT, section 8760(e)(f)
Vendor Use Fuel Tax Return, BOE-501-AV
Report Due: Last day of the month following the quarterly period in which the taxable use of the fuel occurs
Report Penalties: 10% failure to file, section 8876(b) 10% failure to file when paying by EFT, section 8760(d)
Payment Due: Last day of the month following the quarterly period in which the taxable use of the fuel occurs
ReportPenalties: 10% failure to file, section 8876(b) 10% failure to file when paying by EFT, section 8760(d)
PaymentPenalties: 10% failure to file, section 8876(a) 10% failure to pay by EFT, section 8760(e)(f)
Federal Fuel Excise Taxes
The price of all motor fuel sold in California 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 California 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.
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