Gas Guzzler Tax: Rates and Who Pays

The gas guzzler tax is one of the few excise taxes that can land on a private individual’s desk: import a European sports sedan that never got a U.S. EPA rating, and the IRS expects a Form 720 with up to $7,700 attached. For manufacturers it is a routine quarterly line; for importers it is usually a surprise.

Here is who owes it, the complete rate table from Form 6197, and the classification quirk that famously exempts big SUVs.

Who owes the tax

Form 6197 states the scope: the tax "is imposed on the sale, use, or lease by the manufacturer or importer of an automobile of a model type that does not meet certain standards for fuel economy," and "automobiles imported for business or personal use are subject to the tax." Importantly, "manufacturer includes a producer or importer" — bringing the car in makes you the taxpayer. Even stretching existing cars counts: "the lengthening of existing automobiles is considered manufacture" (the limousine rule).

Publication 510 adds that no buyer is exempt on the other side of the sale: "No one is exempt from the gas guzzler tax, including the federal government, state and local governments, qualified blood collector organizations, and nonprofit educational organizations."

The complete rate table

From Form 6197, keyed to EPA model-type fuel economy (not the window-sticker city/highway numbers):

At least 22.5 mpg — no tax
At least 21.5 but less than 22.5 — $1,000
At least 20.5 but less than 21.5 — $1,300
At least 19.5 but less than 20.5 — $1,700
At least 18.5 but less than 19.5 — $2,100
At least 17.5 but less than 18.5 — $2,600
At least 16.5 but less than 17.5 — $3,000
At least 15.5 but less than 16.5 — $3,700
At least 14.5 but less than 15.5 — $4,500
At least 13.5 but less than 14.5 — $5,400
At least 12.5 but less than 13.5 — $6,400
Less than 12.5 mpg — $7,700

Imported cars with no EPA rating are presumed into the bottom category — $7,700 — unless converted to conform to a certified model. That presumption is what stings gray-market importers.

Why SUVs and pickups escape

The tax applies only to an "automobile": a four-wheeled vehicle rated at 6,000 pounds or less unloaded gross weight, gasoline- or diesel-powered, intended mainly for public roads. The definition then excludes vehicles operated on rails, ambulances and law-enforcement vehicles, firefighting vehicles — and "nonpassenger automobiles as defined in the Code of Federal Regulations, Title 49, Part 523, section 523.5."

That CFR cross-reference is the famous carve-out: 49 CFR 523.5 is the federal "light truck" classification, and vehicles classified under it — which in practice sweeps in most pickups, SUVs, minivans, and cargo vans — sit outside the gas guzzler tax regardless of their thirst. The IRS documents cite the regulation rather than naming vehicle types, but the classification is why a 14-mpg luxury SUV owes nothing while a 14-mpg sedan owes $5,400.

How it gets filed — including the importer’s one-time 720

Manufacturers figure the tax on Form 6197 and attach it to their quarterly Form 720, reporting under IRS No. 40. Individual importers get a simplified path when they don’t import in the course of business and owe no other excise taxes: file one Form 720 for the quarter in which liability arose, attach Form 6197, pay with the return (no deposits required), check the one-time filing box on the IRS No. 40 line — and an individual without an EIN may use an SSN or ITIN on the return and payment voucher.

Form 6197’s own example: an individual imports a 15-mpg car in August, owes $4,500, and files Forms 720 and 6197 for the third quarter, paying with the return.

Frequently asked questions

Do I owe gas guzzler tax on a car I import for personal use?⌄

Potentially yes. The tax applies to automobiles "imported for business or personal use," and the importer is treated as the manufacturer. If the model type’s EPA rating is below 22.5 mpg — or the car has no U.S. rating and is presumed into the bottom bracket — the tax is due with a one-time Form 720 filing for that quarter.

Why don’t SUVs and pickup trucks pay the gas guzzler tax?⌄

Because the tax’s definition of "automobile" excludes non-passenger automobiles as classified under 49 CFR 523.5 — the federal light-truck category that covers most SUVs, pickups, minivans, and cargo vans. The exemption is a classification rule from the statute’s design, not an IRS choice.

Which mpg number decides the tax — the window sticker?⌄

No. The tax uses the EPA model-type fuel economy rating determined for gas guzzler purposes, a combined figure that differs from the sticker’s city/highway numbers. Form 6197 keys its whole rate table to that model-type rating.

Can a government agency or nonprofit buy free of the tax?⌄

No — Publication 510 is unambiguous that no one is exempt from the gas guzzler tax, including the federal government, state and local governments, blood collector organizations, and nonprofit schools. The tax sits at the manufacturer/importer level and touches every sale.

Does a one-time filer need an EIN?⌄

No. An individual making a one-time gas guzzler filing who has no EIN may enter a Social Security number or ITIN on Form 720 and the Form 720-V payment voucher — one of the few Form 720 situations where an SSN works.

Related guides

Official sources

Tax rules, rates and deadlines change — verify current requirements against the IRS sources above before acting. This guide is general information, not tax or legal advice.

The Gas Guzzler Tax: Who Pays and How Much