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Highway Statistics 2001 OHPI > Highway Statistics > 2001 > Hwy Finance > Table FE-101B

FEDERAL TAX RATES ON MOTOR VEHICLES AND RELATED PRODUCTS 1/

OCTOBER 2002Table 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 percentdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow
January 1, 1919downward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowAutomobiles for hire $10 for 7 or fewer passengers; $20 for over 7 passengers
February 25, 19195 percent5 percent5 percentdownward facing arrowdownward facing arrow5 percent5 percent5 percentdownward facing arrowdownward facing arrow
July 3, 1924downward facing arrowdownward facing arrowdownward facing arrowExempted truck chassis sold for $1,000 or less and truck bodies for $200 or lessdownward facing arrow2.5 percent2.5 percent2.5 percentdownward facing arrowdownward facing arrow
February 26, 1926downward facing arrowdownward facing arrowdownward facing arrowRepealeddownward facing arrowRepealedRepealedRepealeddownward facing arrowdownward facing arrow
March 29, 19263 percent3 percent3 percentdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow
June 30, 1926downward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowRepealed
May 29, 1928RepealedRepealedRepealeddownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow
June 21, 19323 percent3 percent3 percent2 percentdownward facing arrow2 percent2.25¢ per pound4¢ per pounddownward facing arrowdownward facing arrow
July 1, 19403.5 percent3.5 percent3.5 percent2.5 percentdownward facing arrow2.5 percent2.5¢ per pound4.5¢ per pounddownward facing arrowdownward facing arrow
October 1, 19417 percent7 percent5 percent5 percentHouse trailers, 7 percent; others, 5 percent5 percent5¢ per pound9¢ per pounddownward facing arrowdownward facing arrow
February 1, 1942downward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowAll motor vehicles, $5
June 30, 1946downward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowRepealed
November 1, 195110 percent10 percent8 percent8 percent8 percent 5/8 percentdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow
September 1, 1955downward facing arrowRepealeddownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow
July 1, 1956downward facing arrowdownward facing arrow10 percent10 percent10 percent 5/downward facing arrow8¢ per pounddownward facing arrowAnnual tax on motor vehicles over 26,000 pounds gross weight, $1.50 per 1,000 pounds 6/
July 1, 1961downward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow10¢ per pound10¢ per poundAnnual tax on motor vehicles over 26,000 pounds gross weight, $3 per 1,000 pounds 6/
June 22, 19657 percent 7/downward facing arrow10 percent 5/10 percent 5/downward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow
January 1, 19666 percentdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow8 percent 8/downward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow
March 16, 19667 percentdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow
August 16, 1971Repealeddownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow
November 10, 1978downward facing arrowdownward facing arrowRepealed 9/downward facing arrowdownward facing arrow8 percent 9/ 10/10¢ per pound 9/10¢ per pound 9/9/downward facing arrow
January 1, 1981downward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow9.75¢ per pound 9/ 11/downward facing arrowdownward facing arrowdownward facing arrow
January 7, 1983downward facing arrowdownward facing arrowdownward facing arrow10 percent 12/10 percent 5/ 12/Repealeddownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow
April 1, 1983downward facing arrowdownward facing arrowdownward facing arrow12 percent 12/12 percent 5/ 12/downward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow
January 1, 1984downward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrow15¢ 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/RepealedRepealeddownward facing arrow
July 1, 1984downward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowdownward facing arrowAnnual 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/
Scheduled change under existing lawsdownward facing arrowdownward facing arrowdownward facing arrowTermination
Oct. 1, 2005
Termination
Oct. 1, 2005
downward facing arrowTermination
Oct. 1, 2005
downward facing arrowdownward facing arrowTermination
Oct. 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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