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The Federal Excise Tax (FET) on tires is one of the key components for financing the construction and maintenance of highways and other infrastructure. Producers, dealers, and consumers of taxable tires must be aware of this tax to ensure they are following the law.

Here, we will discuss all the essentials of the Tire Excise Tax that you should know for 2026, such as rates, filing deadlines, exemptions, etc.

Tire Excise Tax refers to the government's levy on specific types of tires when they are sold in the US. While the tax mainly targets the manufacturers, producers, and importers of tires, it usually ends up being charged to the consumers. Generally, it is the tire sellers who get the excise tax from the buyers.

The taxable tires include heavy-duty tires that are typically used for highway vehicles. Importers are also subject to the tax if they bring tires into the U.S. for sale.

The Tire Excise Tax is typically paid quarterly. Businesses must file Form 720 to report and remit their tire excise tax payments. The due dates for filing and paying the tax are as follows:

• April 30 for the first quarter (January 1 – March 31)

• July 31 for the second quarter (April 1 – June 30)

• October 31 for the third quarter (July 1 – September 30)

• January 31 for the fourth quarter (October 1 – December 31).

The Tire Excise Tax rate for 2026 continues to mirror that of the previous tax years. The tax is levied according to the maximum rated load capacity of a tire, and the tax is applied to tires that have a capacity of more than 3, 500 pounds. The rate is figured like this:

Each tire that has a load capacity greater than 3,500 pounds will be charged a tax rate of $2.50 for every 10-pound increment over the 3,500-pound limit.

Example: If a tire has a load rating of 4,000 pounds, the tax would be calculated as:

$2.50 per 10 pounds × (4,000 – 3,500) / 10 = $12.50 tax per tire.

Super Single Tires: A super single tire is one that replaces two tires in a dual setup and typically has a wider cross-section than a regular tire. These tires have their own unique tax rate, calculated based on their load capacity, which exceeds 3,500 pounds.

Example: If a super single tire has a load rating of 7,000 pounds, it would be taxed as:

$2.50 per 10 pounds × (7,000 – 3,500) / 10 = $87.50 tax per tire.

These examples illustrate how the tax is applied to tires based on their load rating. The tax applies to both regular and super single tires, but the rates are different for each category.

Several exemptions to the Tire Excise Tax are based on the tire usage or the entity purchasing the tire. Below are the main exemptions:

Sales for Government and Military Use: Tires sold for use by the Department of Defense or the Coast Guard are exempted from the excise tax. Tires purchased for government-owned vehicles are also exempt.

Tires Used for Certain Transportation: Tires sold for use on school buses or intercity and local buses may be exempt from the excise tax. This includes buses used for public transportation.

Sales for Use in Manufacturing: Tires sold to manufacturers for use in the production of another article, such as tires used in vehicle production, may be eligible for an exemption. This exemption is also available for certain products that qualify under the criteria of section 4221(e)(2).

Tires used for non-highway purposes, e.g., agriculture, off-road vehicles, and other specific uses, are exempt from the excise tax. If the tire is used off the highway and not for highway vehicles, it may be exempt from the tax.

Conclusion

Businesses involved in the sale of taxable tires must comply with filing deadlines and pay the excise tax as required by the IRS.

To ensure compliance, businesses need to file IRS Form 720 quarterly and these businesses should also apply any applicable exemptions,if any. Always refer to the IRS guidelines for the most up-to-date information on regulations and forms.

The IRS requires every business to file the form 720 online. File your Tire Excise Tax with QuickFile720 Today!