Idaho State Tax Commission

Idaho State Tax Commission

Fuels Taxes and Fees

tax.idaho.gov/fuel

Individuals and businesses that deal with fuels tax fall into three categories:

  • Fuels consumers: A fuels consumer is any individual, business, or government entity that uses fuel. Read more about fuels consumers.
  • Fuels distributors: Fuels distributors provide fuel to retailers who sell it to consumers. Read more about fuels distributors.
  • IFTA licensees: The International Fuel Tax Agreement provides a way for businesses transporting goods by truck to report and file their fuels tax with multiple states or jurisdictions using a single standardized form. Read more about IFTA licensees.

What fuels fees support

The state of Idaho uses fuels taxes and fees to:

  • Build and maintain Idaho highways
  • Support infrastructure for Idaho aircraft
  • Support infrastructure for Idaho boats

The transfer fee funds the Idaho Petroleum Clean Water Trust Fund.

Types of fuel and current fuels tax rates

Fuel typeRate per gallonEffective date
Gasoline and alcohol blends  
Gasoline and gasohol, including ethanol (E00) and ethanol blends (E01 to E99), methanol and M-85$.3207-01-2015
High-octane racing fuel containing lead$.00 
Unleaded high-octane racing fuel$.3207-01-2015
Special fuels  
Diesel, including biodiesel (B00) and biodiesel blends (B01 to B99)$.3207-01-2015
A55$.3207-01-2015
Propane (4.25 pounds = 1 gallon)$.23207-01-2015
Liquefied Natural Gas (per DGE*)$.34907-01-2015
Compressed Natural Gas (per GGE**)$.3207-01-2015
Aircraft engine fuels  
Aviation Gasoline$.0707-01-2008
Jet Fuel$.0607-01-2008
Fees  
Transfer Fee$.0103-23-1990

* 1 Diesel Gallon Equivalent (DGE) = 6.06 pounds
** 1 Gasoline Gallon Equivalent (GGE) = 126.67 cubic feet or 5.66 pounds

About two-thirds of motor fuels tax is collected on gasoline and gasoline blends. While the federal government calls some fuels "alternative fuels" (e.g., not gasoline or diesel), Idaho doesn't recognize that term.

How fuels tax is paid

Licensed fuels distributors pay fuels tax to Idaho.

The cost of the fuels tax is included in the price paid for delivered fuel or fuels bought by consumers at the retail pump.

There are three exceptions:

  1. Dyed diesel: This diesel fuel is meant for off-road use only. It's dyed red to distinguish it from diesel for road use. Read more about dyed diesel.
  2. Gaseous fuels: Tax is included only if it's put directly into the supply tank of a licensed motor vehicle. Read more about gaseous fuels.
  3. Buying from an Idaho Indian tribe/member: The fuel sold by these retailers won't include Idaho fuels tax, but will include a tribal fuel tax. Read more about fuel purchased on Indian reservations.

Refunds

If you buy fuel that includes tax, but use it in a nontaxable way, you can get a refund. Read more about fuels tax refunds.

Laws and rules

Learn more about fuels tax:

Laws and rules are housed on an external website.

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.