Federal Excise Tax on Trucks: What Truckers Need to Know in 2026

If you drive, sell, or manage trucks for a living, it’s important to understand the impact of the federal excise tax (FET). This tax applies to certain truck and tractor sales and can significantly affect your business costs. Whether you have experience in the trucking industry or have just gotten on the road, it's essential to have clarity about your FET obligations.

Use this guide to learn everything trucking professionals need to know about federal excise taxes in 2026 — including how much the tax is, who pays it, and how to file correctly.     

What Is the Federal Excise Tax (FET) on Trucks?

Truck FET tax explained: FET is a 12% tax on the first retail sale of specific heavy trucks, tractors, and trailers. FET applies only when the truck exceeds certain gross vehicle weight (GVW) thresholds.

• Truck — a highway vehicle designed to transport a load on the same chassis.

• Tractor — a highway vehicle designed to tow trailers and semitrailers.

Excise taxes also apply to specific goods, including gasoline, tobacco, and weight-based highway vehicles. 

The seller is liable for FET. They may accept a statement from the buyer, under penalty of perjury and executed in good faith, that the purchaser intends to resell or lease on a long-term basis. The purchaser will be liable for the tax when the article is ultimately sold to a new buyer who will use it for its intended purpose. 

Which Vehicles Are Subject to FET? (2026 Rules)

IRS Publication 510 on Excise Taxes states that FET is imposed on the "first retail sale," meaning the first sale for a purpose other than resale or long-term lease after manufacture, production, or importation. 

Who Pays the Federal Excise Tax?

The seller is typically responsible for collecting and remitting FET, but there are exceptions. A buyer’s exemption certification transfers liability if:

• The buyer is purchasing for resale.

• Purchasing for long-term lease.

• Purchasing for exempt use, such as for the government or non-profit education.

While FET applies to several products, there are scenarios where FET is not owed, including sales to:

• State or local governments

• Tribal governments for essential functions

• Non-profit educational institutions

• Qualified blood collector organizations

• Further manufacture 

• Foreign nations (exports) 

When Is FET Paid? (2026 Schedule)

FET applies to the first retail sale for use, not resale. IRS Form 720, Quarterly Federal Excise Tax Return, must be filed for each quarter if you were liable for or responsible for collecting FET. The due date is on or before the end of the month following the quarter's close.

If you are liable for or collect FET, you must file Form 720 quarterly:

Electronic filing is recommended when submitting Form 720 to the IRS. 

How to Calculate the Federal Excise Tax

Calculating federal excise tax is fairly straightforward. Internal Revenue Code Section 4051 imposes a 12% FET on the first retail sale price. The price included components installed for the "incident to delivery," such as: 

• Chassis

• Truck body 

• Accessories 

FET works differently depending on the item. For example, a tractor sale of $250,000 has a FET charge of $30,000, while a $40,000 sale of a light truck below GVW thresholds would be exempt. 

Do You Pay Excise Tax on Used Trucks?

Before purchasing a used truck, it's important to understand how FET might impact the sale. FET usually applies only to the first retail sale of a truck, not to subsequent sales. However, there are exceptions, including: 

• A truck that is exported, then imported, and then sold again may trigger a new FET.

• Major modifications that effectively create a “new” vehicle (rebuilds).

What Do Federal Excise Taxes Fund?

Trucks and other heavy vehicles cause disproportionate wear and tear on roads, which is why these trucker taxes help fund ongoing road maintenance and infrastructure repair.

FET revenue supports the Highway Trust Fund, which pays for:

• Federal highway construction

• Repairs

• Infrastructure updates

The Heavy Vehicle Use Tax (HVUT) — Separate from FET

The seller is responsible for the retail FET for a truck or trailer, while the truck owner is responsible for filing and paying IRS Form 2290, Heavy Highway Vehicle Use Tax Return. This is an annual tax on the continuing use of heavy load-bearing vehicles. Suspensions may apply to vehicles that drive <5,000 miles annually or <7,500 miles annually for agricultural vehicles.

Only trucks considered heavy highway vehicles that weigh 55,000 pounds or more require their owners to pay this tax to the federal government. The deadline to file for the first time is the last day of the following month after the truck's first use. See the form itself for more information about the taxes collected for commercial motor vehicles.

Consult a Professional

Truck taxes can be complicated, especially if you buy, sell, or operate heavy vehicles. Talk to a trucking tax expert from 1-800Accountant, America's leading virtual accounting firm, to help you determine whether FET or HVUT applies, file Form 720 or 2290 correctly, and avoid penalties while maintaining compliance with our suite of affordable, tax-deductible services for trucking professionals.

FET FAQ

1. Does every truck qualify for FET?

2. Are truck sellers responsible for paying HVUT?