Manufacturers and importers of fuel-inefficient passenger cars owe the federal gas guzzler tax — $1,000 to $7,700 per vehicle depending on fuel economy. It's computed on Form 6197 and reported on Form 720 as IRS No. 40. EasyFile720 files it for you.
The gas guzzler tax is a federal excise tax under IRC § 4064, enacted by the Energy Tax Act of 1978 to discourage the production and import of fuel-inefficient passenger cars. It applies to the sale, use, or lease by the manufacturer — and to imports — of any automobile whose EPA combined fuel-economy rating falls below 22.5 MPG. The tax is figured per vehicle on Form 6197 and reported on Form 720 under IRS No. 40.
The manufacturer or importer of the automobile — never the retail consumer. The tax attaches to the first sale, use, or lease by the manufacturer, and to automobiles brought in by importers. Manufacturers typically build the cost into the vehicle price, but the legal duty to report and remit on Form 720 stays with them.
A four-wheeled vehicle (including limousines) with an unloaded gross vehicle weight of 6,000 lbs or less, powered by a gasoline or diesel engine, and made mainly for public streets and highways. Heavier vehicles fall outside this definition — which is why most trucks, SUVs, and vans are not subject.
By the EPA combined fuel-economy rating for the model type — the same testing the EPA uses for fuel-economy labels. If the rating is below 22.5 MPG, the model is a "gas guzzler" and the per-vehicle tax applies on the IRC § 4064 schedule.
Fuel economy has climbed since the tax was enacted by the Energy Tax Act of 1978, so the 22.5 MPG floor now catches mostly high-performance, luxury, and exotic sports cars. A mainstream sedan rated 30+ MPG owes nothing; a 13 MPG supercar owes thousands per unit.
Two tests decide it: the vehicle must be an "automobile" (four wheels, unloaded GVW 6,000 lbs or less, gas or diesel) and rated below 22.5 MPG. Miss either test and there's no gas guzzler tax.
🏎️ Passenger cars rated under 22.5 MPG
New cars whose EPA combined rating is below 22.5 MPG — typically sports, luxury, and high-performance models. Tax runs from $1,000 to $7,700 per vehicle.
🌍 Imported gas-guzzler automobiles
Automobiles imported into the U.S. that rate under 22.5 MPG are taxed — including cars imported for personal use, not just for resale. A one-time filing option may apply (see below).
🚙 Limousines (4-wheel, ≤ 6,000 lbs)
The statute names limousines explicitly. A limousine within the 6,000-lb unloaded-weight definition and under 22.5 MPG is a taxable automobile like any other passenger car.
Cars rated 22.5 MPG or higher
Any automobile with a combined rating of 22.5 MPG or above owes nothing. The schedule begins only below that line.
Trucks, SUVs, vans over 6,000 lbs
Vehicles with an unloaded GVW above 6,000 lbs are not "automobiles" for this tax. Most pickups, full-size SUVs, and cargo vans fall outside it regardless of fuel economy.
Non-gasoline / non-diesel vehicles
The definition requires a gasoline or diesel engine. All-electric vehicles are not covered. Gas hybrids are rated normally — and most rate well above 22.5 MPG, so they owe nothing.
The tax is set by statute based on the vehicle's combined fuel-economy rating. The less efficient the car, the higher the per-vehicle tax.
| Combined MPG | Tax per vehicle |
|---|---|
| At least 22.5 | No tax |
| At least 21.5 but less than 22.5 | $1,000 |
| At least 20.5 but less than 21.5 | $1,300 |
| At least 19.5 but less than 20.5 | $1,700 |
| At least 18.5 but less than 19.5 | $2,100 |
| At least 17.5 but less than 18.5 | $2,600 |
| At least 16.5 but less than 17.5 | $3,000 |
| At least 15.5 but less than 16.5 | $3,700 |
| At least 14.5 but less than 15.5 | $4,500 |
| At least 13.5 but less than 14.5 | $5,400 |
| At least 12.5 but less than 13.5 | $6,400 |
| Less than 12.5 | $7,700 |
Rates are fixed by IRC § 4064 and computed per vehicle on Form 6197. Source: IRS Form 6197.
A specialty manufacturer sells, during Q3 2026, 10 cars of a model rated 14.0 MPG combined and 5 cars of a model rated 19.8 MPG.
The 14.0 MPG model lands in the "at least 13.5 but less than 14.5" bracket → $5,400 each. The 19.8 MPG model lands in "at least 19.5 but less than 20.5" → $1,700 each.
Quarterly tax: (10 × $5,400) + (5 × $1,700) = $54,000 + $8,500 = $62,500 — reported under IRS No. 40 on Form 720.
Unlike many excise taxes, the gas guzzler tax has no exemptions. The IRS is explicit: not the federal government, not state or local governments, not nonprofit educational organizations, and not qualified blood-collector organizations. If a covered automobile rated under 22.5 MPG is sold, used, leased, or imported, the tax applies.
Imported a single gas guzzler for personal use? If you don't import them as a trade or business and aren't otherwise required to file Form 720 for the quarter, you may make a one-time filing: check the "one-time filing" box, use your SSN or ITIN if you have no EIN, and no semimonthly deposits are required.
Compute per vehicle on Form 6197, then report the total under IRS No. 40 — EasyFile720 handles both.
Find each model's combined fuel-economy rating
Use the EPA combined MPG rating for each taxable model type you sold, used, leased, or imported during the quarter.
Look up the per-vehicle tax on Form 6197
Match the rating to the IRC § 4064 schedule on Form 6197 to get the dollar tax for each vehicle of that model.
Total your taxable vehicles for the quarter
Add the gas guzzler tax for every covered automobile first sold, used, leased, or imported during the calendar quarter.
Enter the total under IRS No. 40 in EasyFile720
EasyFile720 carries your Form 6197 total to Form 720, Part I, IRS No. 40 and assembles the return.
E-file to the IRS
Review, sign electronically, and submit directly to the IRS. Part I taxes may require semimonthly EFTPS deposits if your liability exceeds $2,500 for the quarter — one-time personal-use importers are not required to deposit.
The manufacturer or importer of the vehicle — not the consumer. The tax is imposed under IRC § 4064 on the first sale, use, or lease of a covered passenger automobile (and on imports) and is reported on Form 720 as IRS No. 40.
Only four-wheeled passenger automobiles with an unloaded gross vehicle weight of 6,000 lbs or less, powered by gasoline or diesel, and rated below 22.5 MPG combined. Trucks, SUVs, minivans, and vans over 6,000 lbs are excluded, and any automobile rated 22.5 MPG or higher owes nothing.
It ranges from $1,000 (for cars rated at least 21.5 but under 22.5 MPG) up to $7,700 (for cars rated under 12.5 MPG), on the statutory schedule in IRC § 4064. The lower the fuel economy, the higher the tax.
Generally no. The tax applies only to "automobiles" with an unloaded gross vehicle weight of 6,000 lbs or less. Most pickups, full-size SUVs, and cargo vans exceed that weight and are not "automobiles" for this tax — so they fall outside it regardless of their fuel economy.
All-electric vehicles are not subject — the tax only reaches gasoline- and diesel-powered automobiles. Gasoline hybrids are rated under the normal EPA method; because most hybrids rate well above 22.5 MPG, they typically owe no gas guzzler tax.
No. The IRS is explicit that no one is exempt — not the federal government, not state or local governments, not nonprofit educational organizations, and not qualified blood-collector organizations. If a covered automobile under 22.5 MPG is sold, used, leased, or imported, the tax applies.
Yes, but you may qualify for a one-time filing. If you don't import gas-guzzling automobiles in the course of a trade or business and aren't otherwise required to file Form 720 for the quarter, you can make a one-time filing: check the "one-time filing" box, use your SSN or ITIN if you don't have an EIN, and no semimonthly deposits are required.
Form 6197 is the per-vehicle worksheet used to figure the gas guzzler tax by fuel-economy rating. You compute the tax there, then carry the total to Form 720, IRS No. 40, for the quarter the taxable event occurred. EasyFile720 handles both.
Every rate and rule on this page comes straight from IRS guidance. Confirm the details yourself:
This page is general information, not tax advice. Rates are set by IRC § 4064 and reflected on Form 6197; confirm the current figures against the IRS sources above before filing.
IRS No. 40 on Form 720 — Form 6197 worksheet handled for you. Free to get started, pay only when you file.