Motor vehicle fuel tax rates

The motor vehicle fuel tax rates are used to calculate the motor vehicle fuel deduction under the Retailing Business and Occupation (B&O) tax classification. To compute the deduction, multiply the number of gallons by the combined state and federal tax rate.

Gasoline

Date State Rate/Gallon Federal Rate/Gallon Combined
State & Federal Tax Rate/Gallon
Jul 1, 2025 - Jun 30, 2026 0.554 0.184 0.738
Jul 1, 2016 - Jun 30, 2025 0.494 0.184 0.678

 

Diesel

Date State Rate/Gallon Federal Rate/Gallon Combined
State & Federal Tax Rate/Gallon
Jul 1, 2025 - Jun 30, 2026 0.584 0.244 0.828
Jul 1, 2016 - Jun 30, 2025 0.494 0.244 0.738


For more information about fuel tax, visit the Department of Licensing's web site.