Office of Transportation and Air Quality

EPA-420-F-11-033

August 2011

Gas Guzzler Tax

Manufacturers of new cars that fail to meet the minimum fuel 

economy level of 22.5 miles per gallon (mpg) have to pay a “Gas 

Guzzler Tax.” The tax is intended to discourage the production and 

purchase of fuel inefficient vehicles. This fact sheet explains what the 

Gas Guzzler Tax is and how it is calculated.

Introduction

The Energy Tax Act of 1978 imposes a Gas Guzzler Tax on manufacturers who sell 

cars that fail to meet certain statutory fuel economy levels. This tax does not apply 

to minivans, sport utility vehicles, and pick-up trucks. Congress did not impose a gas 

guzzler tax on these vehicle types because in 1978, at the time the law was enacted, 

they represented a relatively small fraction of the overall fleet of passenger vehicles 

and were used more for business purposes than personal transportation. The tax is 

collected by the Internal Revenue Service (IRS) and normally paid by the manufacturer or importer. The amount of the tax paid is displayed on the vehicle’s fuel 

economy label (the window sticker on new cars).

Calculation Technique

The Gas Guzzler Tax for each vehicle is based on its combined city and highway fuel 

economy value. Manufacturers must follow U.S. Environmental Protection Agency 

(EPA) procedures to calculate the tax. The calculation uses a formula that weights 

fuel economy test results for city and highway driving cycles (the combined value 

is based on 55% city driving and 45% highway driving). Fuel economy values are 

calculated before sales begin for the model year. The total amount of the tax is determined later and is based on the total number of gas guzzler vehicles that were sold 

that year. It is assessed after production has ended for the model year and is paid by 

the vehicle manufacturer or importer.

EPA and manufacturers use the same test to measure vehicle fuel economy for the 

Gas Guzzler Tax and for new car fuel economy labels. However, the calculation proProgram Overview

cedures for tax and label purposes differ, resulting in different fuel economy values. 
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Program Overview

This is because an adjustment factor is applied to the fuel economy test results for purposes of 

the label, but not for the tax. The adjustment is intended to help account for the differences 

between “real-world” and laboratory testing conditions.

EPA conducts fuel economy tests in a laboratory on a dynamometer (a device similar to a 

treadmill). Laboratory conditions can be different from real world conditions for such parameters as vehicle speeds, acceleration rates, driving patterns, ambient temperatures, fuel type, 

tire pressure, wind resistance, etc. EPA studies indicate that vehicles driven by typical drivers 

under typical road conditions get approximately 70 to 90 percent of the laboratory test-based 

city miles per gallon (mpg) value and approximately 70 to 80 percent of laboratory highway 

mpg value. This difference is referred to as “in-use shortfall.” To account for the in-use shortfall, 

the city and highway mpg values listed in Fuel Economy Guide and shown on fuel economy 

labels are based on fuel economy test results of the city and highway tests plus three additional 

tests. The three additional tests measure fuel economy 1) at cold ambient temperatures, 2) at 

warmer temperatures with the air conditioner running, and 3) when operated at high speeds and 

high acceleration rates. However, the combined city and highway fuel economy that is used to 

determine tax liability is not adjusted to account for in-use shortfall, so it is higher than the mpg 

values provided in the Fuel Economy Guide (www.fueleconomy.gov) and posted on the window 

stickers of new vehicles.

Tax Schedule

The IRS collects the tax directly from the manufacturer or importer of the vehicles. The following table shows the gas guzzler tax rates which have been in effect since January 1, 1991. The 

manufacturer or importer must pay this amount for each vehicle that doesn’t meet the minimum 

fuel economy level of 22.5 mpg. 

Combined fuel economy of: Amount

at least 22.5 mpg No tax

at least 21.5, but less than 22.5 mpg $1000

at least 20.5, but less than 21.5 mpg $1300

at least 19.5, but less than 20.5 mpg $1700

at least 18.5, but less than 19.5 mpg $2100

at least 17.5, but less than 18.5 mpg $2600

at least 16.5, but less than 17.5 mpg $3000

at least 15.5, but less than 16.5 mpg $3700

at least 14.5, but less than 15.5 mpg $4500

at least 13.5, but less than 14.5 mpg $5400

at least 12.5, but less than 13.5 mpg $6400

less than 12.5 mpg $7700
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Program Overview

Lists of Gas Guzzler Vehicles from 1980 to the current model year

Each model year, EPA identifies vehicles subject to the Gas Guzzler Tax. These lists are available 

on EPA’s web site at: www.epa.gov/fueleconomy/guzzler. These lists should not be construed as 

“all inclusive” lists and are not intended to replace the applicable IRS or EPA regulations. The 

regulations take precedence should there be any discrepancies in this information. 

For More Information

You can access additional information at the following Web sites: 

•	 Gas Guzzler Tax and Vehicles:

www.epa.gov/fueleconomy/guzzler

EPA Web site provides the lists of gas guzzler vehicles by model year. 

•	 IRS Publication 510 – Excise Taxes for 2005:

www.irs.gov/publications/p510/ch05.html#d0e7229 (HTML)

www.irs.gov/pub/irs-pdf/p510.pdf (PDF)

Part Two, Chapter 5 - Manufacturers Taxes of this Internal Revenue 

Service (IRS) publication details the payment obligations for the gas 

guzzler tax. (PDF, 47 pages, 278K)

•	 IRS Form 6197 – Gas Guzzler Tax:

www.irs.gov/pub/irs-pdf/f6197.pdf

IRS form used to calculate the gas guzzler tax. (PDF, 2 pages, 60K) 

•	 EPA Regulations regarding gas guzzler tax compliance: 

•	 40 CFR § 600.314–01 Updating label values, annual fuel 

cost, Gas Guzzler Tax, and range of fuel economies for comparable automobiles. (PDF, 3 pp, 33K) 

http://a257.g.akamaitech.net/7/257/2422/08aug20051500/

edocket.access.gpo.gov/cfr_2005/julqtr/pdf/40cfr600.314-01.pdf

•	 40 CFR § 600.314–86 Updating label values, annual fuel 

cost, Gas Guzzler Tax, and range of fuel economies for comparable automobiles. (PDF, 1 pg, 28K)

http://a257.g.akamaitech.net/7/257/2422/08aug20051500/

edocket.access.gpo.gov/cfr_2005/julqtr/pdf/40cfr600.314-86.pdf 

•	 Fuel Economy 

www.epa.gov/fueleconomy 

EPA’s web site on fuel economy provides information on how EPA 

determines fuel economy estimates, the regulations that govern fuel 

economy testing and reporting, and fuel economy test data.
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Program Overview

•	 Green Vehicle Guide 

www.epa.gov/greenvehicles

EPA’s Green Vehicle Guide provides consumers with fuel economy 

and emission information for all cars and light trucks. Consumers 

can use the Green Vehicle Guide to find the cleanest, most fuelefficient vehicle that meets their needs. Each vehicle is given an 

Air Pollution Score and Greenhouse Gas score on a scale of 0-10, 

with 10 being the best. Users can look up individual vehicles or 

types of vehicles to see how they rate. 

•	 www.fueleconomy.gov 

www.fueleconomy.gov 

This is the official site for fuel economy information, including 

downloadable versions of the annual Fuel Economy Guide, files of 

the annual underlying fuel economy data, as well as much more 

information. Users can look up individual vehicles for specific fuel 

economy information and read tips for improving gas mileage. 

There are links to related sites, including where to find information 

about possible tax credits for alternative fueled vehicles.