The gasoline excise tax rate is determined by the Internal Revenue Code (IRC) § 4081, which imposes a tax on the removal, entry, or sale of taxable fuel. According to § 4081(a)(2)(A), the rates of tax are as follows:
For gasoline other than aviation gasoline, the rate is 18.3 cents per gallon.
For aviation gasoline, the rate is 19.3 cents per gallon.
For diesel fuel or kerosene, the rate is 24.3 cents per gallon.
Furthermore, § 4081(d) specifies future changes to the tax rates. Specifically, the rates of tax specified in clauses (i) and (iii) of subsection (a)(2)(A) shall be 4.3 cents per gallon after September 30, 2028. This indicates a future reduction in the tax rate for gasoline (other than aviation gasoline) and diesel fuel or kerosene, but does not affect the rate for aviation gasoline within the scope of the provided information.
Additionally, § 4081(d)(2) addresses the rates of tax for aviation fuels, stating that the rates specified in subsection (a)(2)(A)(ii) and (a)(2)(C)(ii) shall be 4.3 cents per gallon after December 31, 2023. This pertains specifically to aviation gasoline and certain aviation uses of kerosene, indicating a reduced rate for these fuels under specified conditions.It's important to note that the tax rate for gasoline, as defined in § 4081(a)(2)(A)(i), is currently 18.3 cents per gallon. This rate applies to all products commonly or commercially known or sold as gasoline with an octane rating of 75 or more that are suitable for use as a motor fuel, excluding certain blends primarily consisting of ethanol or methanol produced from coal, peat, or natural gas, or denatured alcohol.
In summary, the current excise tax rate for gasoline, excluding aviation gasoline, is 18.3 cents per gallon as specified in § 4081(a)(2)(A)(i) of the Internal Revenue Code.
Sources:
FAA 20151001F
Notice 2017-30
Notice 88-26
Rev. Rul. 79-112
T.D. 8421
TAM 9013002
