Fuel Use Tax / Highway Use Tax

New York State has taxes for fuel use and highway use.

The fuel use tax is for vehicles above a certain weight that travel across state lines or to and from Canada.

The highway use tax is for all vehicles above a certain weight in New York.

There are special rules and reports for both the fuel use tax and the highway use tax.

New York State is part of the International Fuel Tax Agreement (IFTA). The lower 48 states and all Canadian provinces are in IFTA. Alaska, Hawaii, the District of Columbia, the Northwest Territories, Yukon and Nunavut are not.

Under IFTA:

• Carriers based in New York State pay fuel use taxes only to New York State.
• New York State remits the taxes to other jurisdictions.
• Usually, New York State will do one audit for all places in IFTA.
• IFTA removes the need to file fuel use tax reports for each place the vehicle travels.
• Fuel use tax reports are due every quarter.

Carriers must get two IFTA decals for each qualified motor vehicle. They must get both the license and the decals from their base jurisdiction. These allow vehicles to travel in all IFTA member jurisdictions.

Carriers must also follow all other local laws.

Owners and operators must get a Highway Use Tax registration and decal to collect the tax.

Highway Use Tax Registration

Owners and operators must get a Highway Use Tax registration and decal to pay the tax.