Fuels Taxes and Fees
tax.idaho.gov/fuel
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Fuels Tax Hub
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 type | Rate per gallon | Effective date |
|---|---|---|
| Gasoline and alcohol blends | ||
| Gasoline and gasohol, including ethanol (E00) and ethanol blends (E01 to E99), methanol and M-85 | $.32 | 07-01-2015 |
| High-octane racing fuel containing lead | $.00 | |
| Unleaded high-octane racing fuel | $.32 | 07-01-2015 |
| Special fuels | ||
| Diesel, including biodiesel (B00) and biodiesel blends (B01 to B99) | $.32 | 07-01-2015 |
| A55 | $.32 | 07-01-2015 |
| Propane (4.25 pounds = 1 gallon) | $.232 | 07-01-2015 |
| Liquefied Natural Gas (per DGE*) | $.349 | 07-01-2015 |
| Compressed Natural Gas (per GGE**) | $.32 | 07-01-2015 |
| Aircraft engine fuels | ||
| Aviation Gasoline | $.07 | 07-01-2008 |
| Jet Fuel | $.06 | 07-01-2008 |
| Fees | ||
| Transfer Fee | $.01 | 03-23-1990 |
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:
- 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.
- 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.
- 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:
- Fuels Tax (Idaho Code, Title 63, Chapter 24)
- Motor Fuels Rules
Laws and rules are housed on an external website.
