Electric Outboard Motor Excise Tax (3%)
What qualifies
- Electric trolling motors
- Electric outboard propulsion motors
- Bow-mount and stern-mount electric trolling motors
The 3% applies on the maker's or importer's first sale. Gasoline outboards are excluded entirely. For the full category, see the sport fishing tax rates.
FAQ
Are electric outboard motors subject to federal excise tax?▼
Yes. Electric outboard boat motors are taxed at 3% of the manufacturer's or importer's first-sale price under IRC §4161(a), reported on Form 720, Part II, IRS No. 42. The 3% rate is lower than the 10% rate on most other sport fishing equipment.
Are gasoline outboard motors taxed too?▼
No. Only electric outboard motors are subject to the 3% sport fishing excise tax. Gasoline-powered outboard motors are not subject to this tax.
What types of electric motors qualify?▼
Electric trolling motors, electric outboard propulsion motors, and bow- or stern-mount electric trolling motors are generally covered. The tax applies on the first sale by the manufacturer or importer.
File electric motor excise tax
EasyFile720 applies the 3% rate for IRS No. 42 alongside the rest of your sport fishing equipment taxes.
Reflects the Instructions for Form 720 (Rev. June 2026) and IRC §4161(a). General information, not tax advice.
