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.
For more information, visit tax.iowa.gov.
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.