An excise tax is an indirect, legislated tax levied on specific goods or services that are explicitly or implicitly harmful to the environment. These taxes are imposed by a country's government and are typically collected on sales of motor fuel, airline tickets, and various other goods and services.
Unlike income taxes, excise taxes are independent of income levels
How much is federal excise tax on diesel Fuel?
As of January 1, 2024, the taxes and other fees on retail gasoline and diesel fuel, in cents per gallon, are as follows:
Diesel fuel: 24.4 cents per gallon
Gasoline: 18.4 cents per gallon
Additionally, both fuels include a Leaking Underground Storage Tank fee of 0.1 cents per gallon. Source: Wikipedia
How to file your Federal Excise Tax on Fuel:
Excise taxes should be filed using Form 720. There are two filing methods:
Manual – Fill out Form 720 manually and send it to the IRS mailing address.
Online – File with any IRS-approved online portal.
While both methods are available, it is advisable to use the online method as it is faster, simpler, and more efficient compared to manual filing.
Read our blog on step by step guide for online fuel excise tax filing to get guidance on online filing.
When is Federal Excise Tax Due?
It is always advised to file your Form 720 before the due dates to avoid penalties. In general, Form 720 is filed quarterly. Refer to the table below for the deadlines
If the due date for filing Form 720 falls on a weekend or legal holiday, you can file by the next business day.
WRAP:
By reading this blog, you should now have an understanding of the federal excise tax rate for diesel fuel and the importance of timely filing your Federal Excise Tax. Additionally, you have learned about the efficient methods for filing.
File Form 720 now with our IRS-approved online portal, Simple720, for a fast, simple, and efficient filing experience!