How the Tire Tax Is Calculated: Load Capacity Over 3,500 lbs
The formula
Rate = $0.0945 (Nos. 108, 113) or $0.04725 (No. 109).
Worked examples
- Standard tire rated 6,000 lbs (No. 108): (6,000 − 3,500) ÷ 10 = 250 × $0.0945 = $23.625 per tire.
- Biasply tire rated 5,000 lbs (No. 109): (5,000 − 3,500) ÷ 10 = 150 × $0.04725 = $7.0875 per tire.
- Tire rated 3,200 lbs: capacity ≤ 3,500 → $0.00 (exempt).
Multiply per-tire tax by quantity and sum within each IRS number. See the 2026 tire rates.
FAQ
How is the tire excise tax calculated?▼
Take the tire's maximum rated load capacity, subtract 3,500 lbs, divide by 10, then multiply by the rate ($0.0945 for Nos. 108/113, $0.04725 for No. 109). Tax = ((load capacity − 3,500) ÷ 10) × rate, per tire.
Where do I find a tire's maximum rated load capacity?▼
It is part of the tire's rating/specifications from the manufacturer (related to the load index molded on the sidewall). Use the maximum rated load capacity, not the tire's physical weight.
What if the load capacity is 3,500 lbs or less?▼
Then no tax is due. The tax applies only to the load capacity that exceeds 3,500 lbs, so a tire rated at or below 3,500 lbs is exempt.
Let the tire math happen for you
Enter load capacity and quantity — EasyFile720 applies the 3,500-lb threshold and the right rate, then e-files Form 720.
Reflects the Instructions for Form 720 (Rev. June 2026) and IRC §4071. General information, not tax advice.
