Trucking taxes
FET tax: the federal excise tax on trucks and trailers
FET usually means the 12% federal excise tax on the first retail sale of a heavy truck, tractor or trailer. It is one of four federal excise taxes that reach trucking: the 12% retail tax, the tax on heavy tires, the yearly Heavy Highway Vehicle Use Tax on Form 2290, and the tax built into every gallon of diesel.
The 12% retail excise tax
The tax is 12% of the price on the first retail sale of a truck chassis or body, a highway tractor, or a trailer or semitrailer above the weight limits below. The seller reports it on Form 720, the quarterly federal excise tax return, so for a buyer it is part of what a new heavy truck costs. A used truck that was already taxed on its first retail sale is not taxed again.
| Vehicle | Taxed if |
|---|---|
| Truck chassis and bodies | Over 33,000 lbs GVW |
| Trailer and semitrailer chassis and bodies | Over 26,000 lbs GVW |
| Tractors for highway use | Over 19,500 lbs GVW or over 33,000 lbs gross combined weight |
The heavy tire tax
Tires rated to carry more than 3,500 pounds carry their own excise tax, paid by the manufacturer or importer: 9.45 cents for each 10 pounds of load capacity above 3,500 pounds, or 4.725 cents for a bias-ply or super single tire. It is also scheduled to end October 1, 2028.
Form 2290: Heavy Highway Vehicle Use Tax
Unlike the 12% tax, this one is paid every year by the person the vehicle is registered to:
- Who: vehicles with a taxable gross weight of 55,000 pounds or more used on public highways.
- How much: $100 plus $22 for each 1,000 pounds over 55,000, up to $550 a year for vehicles over 75,000 pounds.
- When: the tax period runs July 1 to June 30. File by the last day of the month after the vehicle’s first use in the period, so August 31, 2026 for a truck first used in July 2026.
- Suspended vehicles: no tax if the vehicle is expected to travel 5,000 miles or less on public highways in the period (7,500 for agricultural vehicles).
Diesel fuel tax
Federal tax on diesel fuel is 24.4 cents a gallon: 24.3 cents of excise tax plus 0.1 cent for the Leaking Underground Storage Tank Trust Fund. It is part of the price at the pump, so a trucker does not file a return for it.
Excise taxes and your LLC
A single-member LLC that owes excise tax is treated as a separate entity for it: it needs its own EIN and files Form 2290 or Form 720 in the LLC’s name, even though its income still goes on the owner’s Schedule C.
Owner-operator or small fleet?
We prepare tax returns for owner-operators and trucking businesses, including Schedule C, quarterly estimates and per diem, remotely or at our Naperville office.
Questions people ask
What is FET tax on a truck?
The 12% federal excise tax on the first retail sale of a heavy truck, tractor or trailer: trucks over 33,000 pounds GVW, trailers over 26,000 pounds, and tractors over 19,500 pounds GVW or 33,000 pounds gross combined weight.
Do I pay FET on a used truck?
Generally no. The tax applies to the first retail sale, so a truck that was taxed when first sold is not taxed again when it is resold.
Is FET the same as the Form 2290 tax?
No. FET is a one-time 12% tax on the first retail sale, reported by the seller on Form 720. The Form 2290 Heavy Highway Vehicle Use Tax is paid every year, up to $550, for vehicles of 55,000 pounds or more.
When is Form 2290 due?
By the last day of the month after the vehicle is first used in the July 1 to June 30 tax period. For trucks in use in July, that is August 31.
Where these rules come from
- IRC 4051: Imposition of tax on heavy trucks and trailers sold at retail
- IRS: Instructions for Form 720
- IRC 4071: Imposition of tax on tires
- IRS: Instructions for Form 2290
- IRC 4481: Imposition of tax on use of heavy vehicles
- IRS: Publication 510, Excise Taxes
- IRS: Single member limited liability companies
General information, current when written, not advice about your situation. Fees and forms change; the official pages above are the authority.
