Idaho State Tax Commission

Idaho State Tax Commission

Fuels Consumers

Consumers usually pay Idaho fuels tax when they buy fuel from a retail dealer in Idaho. There are different types of fuel. The price paid usually includes the cost of the fuels tax. There are three exceptions: gaseous fuels, dyed diesel, and fuel sold by Idaho Indian tribes/members. Read more about when these exceptions apply.

Fuels tax funds roads, airports, waterway improvements, and more.

When you can get a fuels tax refund

If you buy fuel with tax included in the price and use it in a nontaxable way, you can apply for a refund. You must have receipts that show you paid the Idaho tax. Bulk purchases will require withdrawal records. Mileage records are required if you claim nontaxable miles.

Nontaxable uses of gasoline

"Gasoline" includes ethanol and related blends. People who buy at least 50 gallons of gasoline in a year could get a refund if they use it in:

  • Stationary engines
  • Unregistered off-road equipment (snowmobiles and motorcycles don't qualify)
  • Motor vehicle auxiliary engines (power take-off equipment doesn't qualify)
  • Motor vehicles that aren't required to be licensed
  • Commercial motor boats (personal pleasure boats don't qualify)
Special fuels

Special fuels include dyed and undyed diesel, biodiesel, biodiesel blends (e.g. B1-99).

Special fuels also include propane and natural gas. However, there's usually no tax on propane and natural gas purchases unless the fuel is put directly into the supply tank of a licensed motor vehicle.

Some uses that don't qualify for a refund:

  • Dyed diesel, no matter how it's used. Read more about dyed diesel.
  • Special fuels used in snowmobiles, motorcycles, ATVs, motorized bicycles, jet skis
  • Special fuels used in recreational vehicles
  • Special fuels used in a vehicle requiring registration
  • Special fuels used in noncommercial boats; boats operated by a government agency
  • Special fuels on which no tax was charged
Claim a fuels tax refund

Read more about how to claim a fuels tax refund.

Page last updated July 20, 2018. Last full review of page: July 20, 2018.

This information is for general guidance only. Tax laws are complex and change regularly. We can't cover every circumstance in our guides. This guidance may not apply to your situation. Please contact us with any questions. We work to provide current and accurate information. But some information could have technical inaccuracies or typographical errors. If there's a conflict between current tax law and this information, current tax law will govern.