Motor Fuels Tax Rate Changes Effective July 1, 2022

A number of states have announced motor fuel tax rate changes effective July 1, 2022. Weaver will continue to monitor rate changes for the 3rd quarter and update this post as needed.

Maryland

Effective July 1, Maryland's motor fuel tax rates will increase, with the exception of the tax on aviation fuel which will remain taxed at $0.07 per gallon. The new tax rates will be as follows:  

Gasoline, gasohol, propane, LNG, CNG, ethanol, methanol, E85 and M85: $0.427 per gallon.

Diesel and biodiesel: $0.4345 per gallon.

Aviation fuel and aviation gasoline: $0.07 per gallon.

Indiana

Effective July 1, 2022, Indiana's gasoline license tax will be set at 0.33 per gallon and the special fuel license tax will be set at $0.55 per gallon. These rates will remain in effect through June 30, 2023.

South Carolina

Effective July 1, 2022, South Carolina's fuel tax rate will increase to $0.28 per gallon.

Iowa

Effective July 1, 2022, Iowa's tax rate on Biodiesel blends of B11 or higher (undyed fuel) will decrease to $0.301 per gallon.

All other fuel rates will remain unchanged as follows:

  • Gasoline: 30 cents
  • Alcohol: 24 cents
  • Ethanol Blended Gasoline E-10 to E-14,:30 cents
  • Ethanol Blended Gasoline E-15 or higher: 24 cents
  • Diesel (including Biodiesel B-10 and lower): 32.5 cents
  • Aviation Gasoline: 8 cents
  • Aviation Jet: 5 cents
  • Liquefied Petroleum Gas (LPG): 30 cents
  • Liquefied Natural Gas (LNG): 32.5 cents
  • Compressed Natural Gas (CNG): 31 cents
  • Hydrogen: 65 cents

For information or assistance in complying with these requirements, contact us. We are here to help.

© 2022

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Leanne Sobel

Leanne Sobel

Director, Motor Fuels and Excise Tax Services

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Leanne Sobel, J.D., has over 15 years of experience in legal tax matters. Her career focus includes federal and state tax and…

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