Gas guzzler tax: the full table and who actually pays

The federal gas guzzler tax is a charge of $1,000 to $7,700 on a new passenger car whose combined fuel economy is under 22.5 mpg, set by 26 U.S.C. 4064. The manufacturer or importer pays it, not you directly, and the amount appears on the window sticker. On a thirsty exotic, it’s already inside the price you’re quoted.

The full table

These are the tax amounts in section 4064 as we read them on October 24, 2026.

Combined fuel economy	Tax
22.5 mpg or more	$0
At least 21.5, less than 22.5	$1,000
At least 20.5, less than 21.5	$1,300
At least 19.5, less than 20.5	$1,700
At least 18.5, less than 19.5	$2,100
At least 17.5, less than 18.5	$2,600
At least 16.5, less than 17.5	$3,000
At least 15.5, less than 16.5	$3,700
At least 14.5, less than 15.5	$4,500
At least 13.5, less than 14.5	$5,400
At least 12.5, less than 13.5	$6,400
Less than 12.5	$7,700

The mpg figure isn’t the one on the sticker

The tax is based on unadjusted test results, not the mpg number printed on the label for shoppers. FuelEconomy.gov says the tax uses unadjusted test mpg, which differs from the label figure. So you can’t look at a car’s advertised mpg and place it in the table yourself. The sticker shows the tax amount directly, which is the number you want anyway.

Who pays it

The statute puts the tax on “the sale by the manufacturer of each automobile,” and defines manufacturer to include producers and importers. FuelEconomy.gov puts it plainly: the tax is collected directly from the manufacturer rather than the buyer, and the amount paid is disclosed on the fuel economy label, the window sticker on new cars. Manufacturers report it to the IRS on Form 6197.

So it doesn’t appear as a line on your purchase contract or your tax return. It’s built into what the manufacturer charges, and through that into the price you pay. When you finance a new car, you’re financing the tax along with everything else.

What it covers, and what it doesn’t

It applies to new passenger cars only. The EPA’s gas guzzler page, last updated February 18, 2026, says the tax applies “only to passenger cars” and that trucks, minivans and SUVs are not covered. The statute defines an automobile as four-wheeled and rated at 6,000 pounds unloaded gross vehicle weight or less, and it excludes nonpassenger automobiles and emergency vehicles.

That’s why a thirsty super-SUV and a sports car with similar fuel economy can be treated differently. If you’re cross-shopping a super-SUV and a sports car, check each one’s sticker rather than assuming.

Because it’s imposed on the manufacturer’s sale, it’s a new-car charge. Buying a used exotic from a dealer, a private seller or at auction doesn’t trigger it again.

The luxury tax is gone

People sometimes confuse the gas guzzler tax with the old federal luxury tax on expensive cars. That one no longer exists. Cornell’s LII copy of the code shows sections 4001 to 4003, the tax “on luxury passenger vehicles,” as repealed by Public Law 113-295 on December 19, 2014. The tax had stopped applying long before the formal repeal: a trade source, Automotive Fleet, reported it as repealed effective January 1, 2003. We haven’t confirmed that end date from the statute’s own text.

State sales tax and registration fees still apply, and they vary. Those are separate from both federal taxes.

Does it change the loan?

Only in that it’s part of the price. If the car’s price includes a $3,000 gas guzzler tax and you finance it over 120 months, you pay interest on that $3,000 too. The calculator has a separate sales tax field and a checkbox for rolling tax into the loan; the gas guzzler tax is already in the price you enter, so don’t add it twice.

This is general information about how the tax works, not tax advice. For how specialty lenders treat the rest of the purchase, see how specialty lenders differ from banks and the long-term loan guide.