Kentucky: Fuel Excise Taxes
Kentucky Cigarette and Fuel Excise Taxes
In addition to (or instead of) traditional sales taxes, gasoline and other Fuel products are subject to excise taxes on both the Kentucky and Federal levels. Excise taxes on Fuel are implemented by every state, as are excises on alcohol and tobacco products.
Kentucky Gasoline Tax
| Excise: | $0.25 / gallon |
|---|---|
| Addl. Tax: | $0.01 / gallon† |
| Total Tax: | $0.26 / gallon |
Kentucky Diesel Tax
| Excise: | $0.22 / gallon |
|---|---|
| Addl. Tax: | $0.01 / gallon† |
| Total Tax: | $0.23 / gallon |
Kentucky Gasohol Tax
| Excise: | $0.25 / gallon |
|---|---|
| Addl. Tax: | $0.01 / gallon† |
| Total Tax: | $0.26 / gallon |
† Additional Applicable Taxes: Environmental fee
Other Kentucky Fuel Excise Tax Rates
The primary excise taxes on fuel in Kentucky are on gasoline, though most states also tax other types of fuel.
Kentucky Aviation Fuel Tax
In Kentucky, Aviation Fuel is subject to a state excise tax of Same rate as Gasoline
Point of Taxation: Taxed as Gasoline
Kentucky Jet Fuel Tax
In Kentucky, Jet Fuel is subject to a state excise tax of Not subject to the Motor Fuels Tax, but subject to the 6% Sales Tax.
Point of Taxation: Exempt under KRS 138.210(18)
Payment of Kentucky Fuel Excise Taxes
Payments of fuel excise taxes are made by fuel vendors, not by end consumers, though the taxes will be passed on in the fuel's retail price. Fuel tax is due on the 25th of each month for the previous month with the exception being carrier gasoline users who must pay fuel tax on the last day of January, April, July and October of each year.
Kentucky Fuel Tax Reports
Fuel producers and vendors in Kentucky have to pay fuel excise taxes, and are responsible for filing various fuel tax reports to the Kentucky government. Click the button below to view details on one KY fuel tax reports.
View Fuel Tax ReportsLicensed Gasoline Dealer's Monthly Report, Licensed Special Fuels Dealer's Monthly Report, Monthly Report Liquefied Petroleum Gas Dealer, Terminal Operators Report, and the Petroleum Storage Tank Envi
Report Due: 25 th of the month following the end date of the period
Report Penalties: Any report filed late: 2% of tax due for each 30 days that the report is late. Total penalty shall not exceed 20% of the total tax due, but not less than ten dollars ($10). Failure to file any Report: 5% of the tax assessed for each 30 days or fraction thereof that the report is not filed. Total penalty shall not exceed 50% of the tax assessed, but not less than twenty-five dollars ($25).
Payment Due: Due same day as the report
ReportPenalties: Any report filed late: 2% of tax due for each 30 days that the report is late. Total penalty shall not exceed 20% of the total tax due, but not less than ten dollars ($10). Failure to file any Report: 5% of the tax assessed for each 30 days or fraction thereof that the report is not filed. Total penalty shall not exceed 50% of the tax assessed, but not less than twenty-five dollars ($25).
PaymentPenalties: Any report filed late: 2% of tax due for each 30 days that the report is late. Total penalty shall not exceed 20% of the total tax due, but not less than ten dollars ($10).
Federal Fuel Excise Taxes
The price of all motor fuel sold in Kentucky also includes Federal motor fuel excise taxes, which are collected from the manufacturer by the IRS and are used to support the Federal Highway Administration. Federal excise tax rates on various motor fuel products are as follows:
| Gasoline | $0.18.4 per gallon |
|---|---|
| Diesel and Kerosene | $0.242 per gallon |
| Liquefied Petroleum Gas | $0.183 per gallon † |
| Liquefied Natural Gas (LNG) | $0.243 per gallon † |
| Compressed Natural Gas (CNG) | $0.184 per gallon † |
Included in the Gasoline, Diesel/Kerosene, and Compressed Natural Gas rates is a 0.1 ยข per gallon charge for the Leaking Underground Storage Tank Trust Fund (LUST).
† These tax rates are based on energy content relative to gasoline.
What percentage of the cost of gas in Kentucky comes from taxes and gas station profit?
The diagram above shows how the prices of an average gallon of gasoline and diesel fuel are broken down among various components, including the cost of the crude oil, refining, distribution / marketing, and taxes. In most areas, state and federal excise taxes amount to about 13% of the cost of a gallon of gas. Gas stations generally only profit a few cents per gallon.
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