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Highway Statistics 2002 OHPI > Highway Statistics > 2002 > Hwy Finance > Table FE-101B

FEDERAL TAX RATES ON MOTOR VEHICLES AND RELATED PRODUCTS 1/

OCTOBER 2003Table FE-101B
EFFECTIVE DATE OF NEW TAX OR REVISION OF EXISTING TAXAUTOMOBILES (PERCENT OF MANUFACTURER'S SALES PRICE)MOTORCYCLES (PERCENT OF MANUFACTURER'S SALES PRICE)BUSES (PERCENT OF MANUFACTURER'S SALES PRICE)TRUCKS 2/TRAILERS 2/PARTS AND ACCESSORIES (PERCENT OF MANUFACTURER'S SALES PRICE)TIRES 3/TUBES 3/TREAD RUBBER (CENTS PER POUND) 4/USE
October 4, 19173 percent3 percent3 percent3 percentdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
January 1, 1919downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowAutomobiles for hire $10 for 7 or
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowfewer passengers; $20 for over
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow7 passengers
February 25, 19195 percent5 percent5 percentdownarrowdownarrow5 percent5 percent5 percentdownarrowdownarrow
July 3, 1924downarrowdownarrowdownarrowExempted truck chassis sold for $1,000 or less and truck bodies for $200 or less2.5 percent2.5 percent2.5 percentdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrow
February 26, 1926downarrowdownarrowdownarrowRepealeddownarrowRepealedRepealedRepealeddownarrowdownarrow
March 29, 19263 percent3 percent3 percentdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
June 30, 1926downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowRepealed
May 29, 1928RepealedRepealedRepealeddownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
June 21, 19323 percent3 percent3 percent2 percentdownarrow2 percent2.25¢ per pound4¢ per pounddownarrowdownarrow
July 1, 19403.5 percent3.5 percent3.5 percent2.5 percentdownarrow2.5 percent2.5¢ per pound4.5¢ per pounddownarrowdownarrow
October 1, 19417 percent7 percent5 percent5 percentHouse trailers, 7 percent; others, 5 percent5 percent5¢ per pound9¢ per pounddownarrowdownarrow
downarrowdownarrow
February 1, 1942downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowAll motor vehicles, $5
June 30, 1946downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowRepealed
November 1, 195110 percent10 percent8 percent8 percent8 percent 5/8 percentdownarrowdownarrowdownarrowdownarrow
September 1, 1955downarrowRepealeddownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
July 1, 1956downarrowdownarrow10 percent10 percent10 percent 5/downarrow8¢ per pounddownarrowAnnual tax on motor vehicles over 26,000 pounds gross weight, $1.50 per 1,000 pounds 6/
downarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrow
July 1, 1961downarrowdownarrowdownarrowdownarrowdownarrowdownarrow10¢ per pound10¢ per poundAnnual tax on motor vehicles over 26,000 pounds gross weight, $3 per 1,000 pounds 6/
downarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrow
June 22, 19657 percent 7/downarrow10 percent 5/10 percent 5/downarrowdownarrowdownarrowdownarrowdownarrowdownarrow
January 1, 19666 percentdownarrowdownarrowdownarrowdownarrow8 percent 8/downarrowdownarrowdownarrowdownarrow
March 16, 19667 percentdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
August 16, 1971Repealeddownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
November 10, 1978downarrowdownarrowRepealed 9/downarrowdownarrow8 percent 9/ 10/10¢ per pound 9/10¢ per pound 9/9/downarrow
January 1, 1981downarrowdownarrowdownarrowdownarrowdownarrowdownarrow9.75¢ per pound 9/ 11/downarrowdownarrowdownarrow
January 7, 1983downarrowdownarrowdownarrow10 percent 12/10 percent 5/ 12/Repealeddownarrowdownarrowdownarrowdownarrow
April 1, 1983downarrowdownarrowdownarrow12 percent 12/12 percent 5/ 12/downarrowdownarrowdownarrowdownarrowdownarrow
January 1, 1984downarrowdownarrowdownarrowdownarrowdownarrowdownarrow15¢ per pound over 40 to 70 pounds; $4.50 plus 30¢ per pound over 70 to 90 pounds; $10.50 plus 50¢ per pound over 90 pounds 9/RepealedRepealeddownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
July 1, 1984downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowAnnual tax on motor vehicles: 55,000 TO 75,000 pounds gross weight, $100 plus $22 per 1,000 pounds over 55,000 pounds; over 75,000 pounds, $550 13/
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
downarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrowdownarrow
Scheduled changedownarrowdownarrowdownarrowTerminationTerminationdownarrowTerminationdownarrowdownarrowTermination
under existing lawsdownarrowdownarrowdownarrowOct. 1, 2005Oct. 1, 2005downarrowOct. 1, 2005downarrowdownarrowOct. 1, 2005

1/ The focus of this table is on the Federal taxes on motor vehicles and related products used on highways. The detail provided for other uses is incomplete. Most of the revenue raised by the taxes described is dedicated to the Federal Highway Trust Fund for the financing of highway and transit programs.

2/ Percent of manufacturer's sales price through March 31, 1983; percent of retailer's sales price thereafter.

3/ Percent of manufacturer's sales price to February 26, 1926; re- enacted effective June 21, 1932, on a cents-per- pound basis, but applicable to all tires and tubes, not limited to those for automotive vehicles. Tires and tubes for toys exempted effective November 1, 1951. The additional 3 cents per pound, effective July 1, 1956, and 2 cents per pound, effective July 1, 1961, apply to tires for highway vehicles only. Laminated tires are taxed 1 cent per pound effective July 1, 1965. Effective January 1, 1984, tires of 40 pounds or less are exempt.

4/ Applies to tires "of the type used on highway vehicles."

5/ The following are exempt from the stated taxes: effective November 1,1951, house trailers; effective June 22, 1965, school buses, camper bodies, motor homes, truck and trailer bodies designed for seed, feed, and fertilizer, small three-wheeled vehicles; effective September 23, 1971, trucks, buses, and trailers 10,000 pounds or less gross weight; and, effective December 11, 1971, local transit buses in urban use and trash container bodies for trucks.

6/ The tax applies to the entire gross weight of a vehicle or combination if its gross weight exceeds 26,000 pounds. Buses used in local transit service are exempt.

7/ Although the "basic" tax on automobiles was 7 percent of the manufacturer's wholesale price until January 1, 1966, the 10-percent rate that became effective on a temporary basis November 1, 1951 remained in effect through periodic extensions.

8/ Automobile parts and accessories are exempt from stated taxes.

9/ Taxes paid on buses purchased after April 19, 1977 are refunded. Effective December 1, 1978, bus parts and accessories are exempt and school buses along with intercity and local buses used to transport the general public for compensation on scheduled routes (or 20 or more passenger buses on nonscheduled routes) are exempt from the stated taxes for tires, tubes, and tread rubber.

10/ Although the "basic" tax is 5 percent of the manufacturer's wholesale price, the 8-percent rate that became effective on a temporary basis November 1, 1951, remained in effect through periodic extensions until the tax was repealed.

11/ The tax on nonhighway tires is 4.875 cents per pound except laminated tires are taxed at 1 cent per pound.

12/ Trucks 33,000 pounds or less gross vehicle weight, trailers 26,000 pounds or less gross vehicle weight and rail/highway trailers are exempt from stated taxes. Effective July 18, 1984, piggyback trailers are taxed at 6 percent through July 17, 1985.

13/ The effective date for the rate change for small owner-operator with or fewer taxable trucks is July 1, 1985. Rate is reduced by 25 percent for logging trucks. Trucks used less than 5,000 miles (farm trucks 7,500 miles) per taxable year on public highways and trucks with gross weights under 55,000 pounds are exempt. Effective July 1, 1987, trucks based for registration purposes in Canada or Mexico shall be taxed at 75 percent of the rate before they can operate in the United States. Previously these vehicles were exempt.


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