Minnesota: Fuel Excise Taxes
Minnesota 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 Minnesota and Federal levels. Excise taxes on Fuel are implemented by every state, as are excises on alcohol and tobacco products.
Minnesota Gasoline Tax
| Excise: | $0.29 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.29 / gallon |
Minnesota Diesel Tax
| Excise: | $0.29 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.29 / gallon |
Minnesota Gasohol Tax
| Excise: | $0.29 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.29 / gallon |
† Additional Applicable Taxes: Inspection fee
Other Minnesota Fuel Excise Tax Rates
The primary excise taxes on fuel in Minnesota are on gasoline, though most states also tax other types of fuel.
Minnesota Aviation Fuel Tax
In Minnesota, Aviation Fuel is subject to a state excise tax of $0.05
Point of Taxation: 1 st Licensed Distributor after the rack.
Minnesota Jet Fuel Tax
In Minnesota, Jet Fuel is subject to a state excise tax of $0.15
Point of Taxation: Special fuel tax. Subdivision 1. Tax imposed. (e) For other fuels, including jet fuel, propane, and compressed natural gas, the tax is imposed on the distributor, special fuel dealer, or bulk purchaser. (f) Any person delivering special fuel on which the excise tax has not previously been paid, into the supply tank of an aircraft or a licensed motor vehicle shall report such delivery and shall pay, or collect and pay the excise tax on the special fuel so delivered to the Commissioner.
Payment of Minnesota 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. Motor carrier tax is due on the last day of April, July, October and January (Quarterly tax) while all other payments are due on the 23rd of each month.
Minnesota Fuel Tax Reports
Fuel producers and vendors in Minnesota have to pay fuel excise taxes, and are responsible for filing various fuel tax reports to the Minnesota government. Click the button below to view details on four MN fuel tax reports.
View Fuel Tax ReportsAlternative fuel tax return
Report Due: By 23 rd of following month
Payment Due: By 23 rd of following month
PaymentPenalties: 1% per day up to 10%
Gasoline tax return
Report Due: By 23 rd of following month
Payment Due: By 23 rd of following month
PaymentPenalties: 1% per day up to 10%
Propane fee
Report Due: By 23 rd of following month
Payment Due: By 23 rd of following month
PaymentPenalties: 1% per day up to 10%
Special fuel tax return
Report Due: By 23 rd of following month
Payment Due: By 23 rd of following month
PaymentPenalties: 1% per day up to 10%
Federal Fuel Excise Taxes
The price of all motor fuel sold in Minnesota 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 Minnesota 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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