Excise Taxes on Fuels and Fuel Tax Credits and Refunds

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. Excise Tax has several general excise tax programs. One of the major components of the excise program is motor fuel.

Excise taxes are imposed on all the following fuels.

  • Gasoline, including aviation gasoline and gasoline blendstocks.
  • Diesel fuel, including dyed diesel fuel.
  • Diesel-water fuel emulsion.
  • Kerosene, including dyed kerosene and kerosene used in aviation.
  • Other Fuels (including alternative fuels).
  • Compressed natural gas (CNG).
  • Fuels used in commercial transportation on inland waterways.
  • Any liquid used in a fractional ownership program aircraft as fuel.

More detail available at IRS.gov