Texas: Fuel Excise Taxes
Texas 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 Texas and Federal levels. Excise taxes on Fuel are implemented by every state, as are excises on alcohol and tobacco products.
Texas Gasoline Tax
| Excise: | $0.20 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.20 / gallon |
Texas Diesel Tax
| Excise: | $0.20 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.20 / gallon |
Texas Gasohol Tax
| Excise: | $0.20 / gallon |
|---|---|
| Addl. Tax: | $0.00 / gallon† |
| Total Tax: | $0.20 / gallon |
Other Texas Fuel Excise Tax Rates
The primary excise taxes on fuel in Texas are on gasoline, though most states also tax other types of fuel.
Texas Aviation Fuel Tax
In Texas, Aviation Fuel is subject to a state excise tax of $0.20 per gallon
Point of Taxation: terminal rack
Texas CNG Tax
In Texas, CNG is subject to a state excise tax of $0.15 per gasoline gallon equivalent or diesel gallon equivalent
Point of Taxation: At the pump where CNG is dispensed into a motor vehicle beginning 09/01/2013.
Texas Jet Fuel Tax
In Texas, Jet Fuel is subject to a state excise tax of $0.20 per gallon
Point of Taxation: terminal rack
Texas LNG Tax
In Texas, LNG is subject to a state excise tax of $0.15 per gasoline gallon equivalent or diesel gallon equivalent
Point of Taxation: At the pump where LNG is dispensed into a motor vehicles beginning 09/01/2013.
Texas Propane Tax
In Texas, Propane is subject to a state excise tax of $0.15 per gallon paid by out-of-state plated vehicles, IFTA licensed vehicles, and motor vehicles operated under a Texas licensed Motor Vehicle Dealer's liquefied gas tax decal to a licensed liquefied gas dealer. Beginning September 1, 2015, no state motor fuels tax assessed on liquefied gas (propane or butane).
Point of Taxation: Prior to September 1, 2015, a prepaid decal was required for Texas plated motor vehicles and $0.15 per gallon was required to be paid by out-of-state plated vehicles, IFTA licensed vehicles, and motor vehicles operated under a Texas licensed Motor Vehicle Dealer's liquefied gas tax decal to a licensed liquefied gas dealer. Beginning September 1, 2015, no state motor fuels tax is assessed on liquefied gas (propane or butane).
Payment of Texas 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 25th of each month for the previous month.
Texas Fuel Tax Reports
Fuel producers and vendors in Texas have to pay fuel excise taxes, and are responsible for filing various fuel tax reports to the Texas government. Click the button below to view details on two TX fuel tax reports.
View Fuel Tax ReportsAll motor fuel reports.
Report Due: 25 day of the month following the reporting period.
Report Penalties: $50 for late filing even if $0 or a credit or refund due.
Payment Due: 25 day of the month following the reporting period.
ReportPenalties: $50 for late filing even if $0 or a credit or refund due.
PaymentPenalties: 1-30 days late is a 5% penalty. 31 days or more days late is a 10% penalty.
IFTA reports.
Report Due: Last day of the month following Last day of the month the reporting quarter.
Payment Due: Last day of the month following Last day of the month the reporting quarter.
Federal Fuel Excise Taxes
The price of all motor fuel sold in Texas 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 Texas 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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