Motor Carriers

Iowa fuel tax rate changes

The Iowa fuel tax rates for gasoline, alcohol, ethanol blended gasoline, and E85 changed on July 1, 2016. Iowa fuel tax rates are based on a fuel distribution percentage formula. Applying that formula resulted in the changes.

All other Iowa fuel tax rates will remain the same. Please refer to the tables below for all applicable tax rates and their effective dates.

There is no inventory tax associated with the rate changes.

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Iowa fuel rates per gallon

Rates changed July 1, 2016
Fuel type Rate before July 1, 2016 New rate
effective July 1, 2016
Gasoline $0.308 $0.307
Alcohol $0.293 $0.290
Ethanol blended gasoline $0.293 $0.290
E85 $0.293 $0.290

Rates NOT changed July 1, 2016
Fuel type Current rate
Diesel (including biodiesel B10 and lower) $0.325
Biodiesel B11 or higher $0.295
Aviation gasoline $0.080
Aviation jet $0.050
Liquefied petroleum gas (LPG) $0.300
Liquefied natural gas (LNG) $0.325
Compressed natural gas (CNG) $0.310

Claims for fuel tax refunds must be calculated using the correct rates based on the date of purchase. The telephone refund system will be updated with the new tax rates. The system will calculate refunds using the correct tax rates for the invoice dates given. Therefore, separate refund claims must be filed for invoices dated prior to July 1, 2016, as well as those dated on or after July 1, 2016.


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