Idaho State Tax Commission

Idaho State Tax Commission

Fuels / Motor Fuels tax

The motor fuels section of this website contains information for the following audiences: consumers, distributors, and International Fuel Tax Agreement (IFTA) licensees.

Fuel consumers

Consumers of motor fuel include individuals, businesses, and government entities. Motor fuel is used in licensed motor vehicles and equipment; some motor fuel use is taxable and some isn't. Consumers using untaxed fuel in a licensed motor vehicle may owe fuels tax. Consumers who put taxable fuel to a nontaxable use can claim a refund of the motor fuel tax, but may owe sales or use tax. For more information on how consumers can claim refunds of motor fuels tax or pay fuels tax they owe, see the Fuel Consumers page.

Fuel distributors

Fuel distributors, whether licensed or not, provide fuel to retailers who sell to consumers. Distributors make fuel available at retail outlets or deliver it directly to the consumer. Motor fuel tax is paid by fuel distributors to help build and maintain Idaho highways. The tax is passed on to the consumer as a cost included in the price of the fuel. For more information on the way Idaho taxes fuel, see the Fuel Distributors page.

IFTA licensees

IFTA licensees are businesses — sole proprietors, corporations, or limited liability companies — that operate motor vehicles in more than one jurisdiction as part of their business. The licensee can be a dedicated trucking company, transporting goods for others, or merely an incidental portion of a business. For example, a farmer growing vegetables may use his own trucks to transport his produce to market (incidental) rather than hire another company to transport his produce (dedicated). For more information on licensing with IFTA, and other taxes and fees related to commercial motor vehicles, see the IFTA Licensees page or go to trucking.idaho.gov.

Fuel tax rates

Fuel typeRate per gallonEffective date
Diesel$.2504-01-1996
Biodiesel (B00)$.2504-01-1996
Biodiesel Blends (B01-B99)$.2504-01-1996
Gasoline$.2504-01-1996
Ethanol (E00)$.2507-01-2010
Ethanol Blends (E01-E99)$.2504-01-1996
Propane (4.25 lbs. = 1 gal.)$.18104-01-1996
Natural Gas (1 therm = 1 gal.*)$.19704-01-1996
Natural Gas (1.27 therm = 1 GGE)$.2504-01-1996
Aviation Gasoline$.0707-01-2008
Jet Fuel$.0607-01-2008
Transfer Fee$.0109-01-2007

*This is not a U.S. gallon. It's a different measurement that applies only to natural gas.

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Last updated April 29, 2014

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