Motor Fuels and Alternative Fuels Tax Rates Announcements

In accordance with North Carolina General Statute 105-449.80, the Secretary of Revenue may use the annual energy index percentage change in the Consumer Price Index for All Urban Consumers from the Bureau of Labor and Statistics (BLS) for October of the current year released in November or the equivalent to calculate the motor fuels tax rate for the coming year. The BLS will not publish October data for 2025 due to the recent government shutdown.

The BLS has published the Consumer Price Index for All Urban Consumers for November of the current year released in December. This data will be used as an equivalent in calculating the motor fuels and alternative fuels tax rate. Therefore, the Secretary has determined that the motor fuels and alternative fuels excise tax rate for the period of January 1, 2026, through December 31, 2026, will be 41.0 cents per gallon or gallon equivalent.

In addition, the inspection tax will remain at 0.0025 cents per gallon or gallon equivalent.

In accordance with North Carolina General Statute 105-449.80, the Secretary of Revenue has determined that the motor fuels and alternative fuels excise tax rate for the period of January 1, 2025 through December 31, 2025 will decrease from 40.4 cents to 40.3 cents per gallon or gallon equivalent. 

In addition, the inspection tax will remain at 0.0025 cents per gallon or gallon equivalent.

In accordance with North Carolina General Statute 105-449.80, the Secretary of Revenue has determined that the motor fuels and alternative fuels excise tax rate for the period of January 1, 2024 through December 31, 2024 will decrease from 40.5 cents to 40.4 cents per gallon or gallon equivalent.

In addition, the inspection tax will remain at 0.0025 cents per gallon or gallon equivalent.

In accordance with NC General Statute 105-449.80, the Secretary of Revenue has determined that the motor fuels and alternative fuels excise tax rate for the period of January 1, 2023 through December 31, 2023 will increase from 38.5 cents to 40.5 cents per gallon or gallon equivalent. 

The motor fuels excise tax rate is calculated by using the motor fuel excise tax rate of the preceding calendar year, multiplied by a percentage. The percentage is 100 percent plus or minus the sum of the annual percentage change in state population for the applicable calendar year, multiplied by 75 percent and the annual energy index percentage change in the Consumer Price Index for All Urban Consumers, multiplied by 25 percent. 

In addition, the inspection tax will remain at 0.0025 cents per gallon or gallon equivalent.

In accordance with HB 77, s 4.2., S.L. 2020-91 and North Carolina General Statute Section 105-449.80, the Secretary of Revenue has determined that the motor fuels and alternative fuels tax rate for the period of January 1, 2022 through December 31, 2022 will be 38.5 cents per gallon or gallon equivalent.

The motor fuel excise tax rate is generally calculated by using the motor fuel excise tax rate of the preceding calendar year, multiplied by a percentage. The percentage is 100 percent plus or minus the sum of the annual percentage change in State population for the applicable calendar year, multiplied by 75 percent and the annual energy index percentage change in the Consumer Price Index for All Urban Consumers, multiplied by 25 percent. However, for the period beginning January 1, 2022 the motor fuel tax rate shall be calculated pursuant to the formula set out in G.S. 105-449.80(a) using as the amount for the preceding calendar year the amount that the motor fuel tax rate would have been for the calendar year 2021.

In addition, the inspection tax will remain at .0025 cents per gallon.

In accordance with HB 77, s 4.2., S.L. 2020-91 and North Carolina General Statute Section 105-449.80, the Secretary of Revenue has determined that the motor fuels and alternative fuels tax rate for the period of January 1, 2021 through December 31, 2021 will remain 36.1 cents per gallon.

The motor fuel excise tax rate is generally calculated by using the amount of the preceding calendar year, multiplied by a percentage. The percentage is 100 percent plus or minus the sum of the annual percentage change in state population for the applicable calendar year, multiplied by 75 percent and the annual energy index percentage change in the Consumer Price Index for All Urban Consumers, multiplied by 25 percent. However, for the period of January 1, 2021 through December 31, 2021, the motor fuel excise tax rate is the greater of 36.1 cents per gallon or the rate calculated using the method described above.

In addition, the inspection tax will remain at .0025 cents per gallon.

In accordance with North Carolina G.S. 105-449.80, the Secretary of Revenue has determined that the motor fuels and alternative fuels tax rate for the period of January 1, 2020 through December 31, 2020 will decrease from 36.2 cents to 36.1 cents per gallon.

The motor fuel excise tax rate is the amount of the preceding calendar year, multiplied by a percentage. The percentage is 100 percent plus or minus the sum of the annual percentage change in state population for the applicable calendar year, multiplied by 75 percent and the annual energy index percentage change in the Consumer Price Index for All Urban Consumers, multiplied by 25 percent.

In addition, the inspection tax will remain at .0025 cents per gallon.

In accordance with North Carolina G.S. 105-449.80, the Secretary of Revenue has determined that the motor fuels and alternative fuels tax rate for the period of January 1, 2019 through December 31, 2019 will increase from 35.1 cents to 36.2 cents per gallon. 

The motor fuel excise tax rate is computed using the amount of the preceding calendar year's fuel tax rate multiplied by a percentage. The percentage is plus or minus the sum of the annual percentage change in state population for the applicable calendar year, multiplied by 75 percent and the annual energy index percentage change in the Consumer Price Index for All Urban Consumers, multiplied by 25 percent. 

In addition, the inspection tax will remain at .0025 cents per gallon.

In accordance with North Carolina G.S. 105-449.80, the Secretary of Revenue has determined that the motor fuels and alternative fuels tax rate for the period of January 1, 2018 through December 31, 2018 will increase from 34.3 cents to 35.1 cents per gallon.

The motor fuel excise tax rate is computed using the amount of the preceding calendar year's fuel tax rate multiplied by a percentage. The percentage is plus or minus the sum of the annual percentage change in state population for the applicable calendar year, multiplied by 75 percent and the annual energy index percentage change in the Consumer Price Index for All Urban Consumers, multiplied by 25 percent.

In addition, the inspection tax will remain at .0025 cents per gallon.

In accordance with North Carolina G.S. 105-449.80 as amended by Session Law 2015-2, the motor fuels and alternative fuels tax rate for the period January l , 2017 through December 31, 2017 will increase from 34.0 cents to 34.3 cents per gallon. 

During the 2015 legislative session, North Carolina Session Law 2015-2 was enacted which set the 2017 motor fuels tax rate at a flat rate of 34 cents per gallon multiplied by a percentage. The percentage is plus or minus the sum of the annual percentage change in state population for the applicable calendar year, multiplied by 75 percent and the annual energy index percentage change in the Consumer Price Index for All Urban Consumers, multiplied by 25 percent.

In addition, the inspection tax will remain at .0025 cents per gallon.

In accordance with North Carolina General Statute 105-449.80, the Secretary of Revenue gives notice that the motor fuels and alternative fuels tax rate for the period July 1, 2016 through December 31, 2016 will decrease from 35.0 cents per gallon to 34.0 cents per gallon.

During the 2015 legislative session, NC Senate Bill 20 was passed which set the motor fuels tax rate at 34 cents per gallon and is effective July 1, 2016 through December 31, 2016.

In addition, the inspection tax remains at .0025 cents per gallon.

In accordance with North Carolina General Statute 105-449.80, the Secretary of Revenue gives notice that the motor fuels and alternative fuels tax rate for the period January 1, 2016 through June 30, 2016 will decrease from 36.0 cents per gallon to 35.0 cents per gallon.

During the 2015 legislative session, NC Senate Bill 20 was enacted through Session Law 2015-2, which set the motor fuels tax rate at 35.0 cents per gallon. The flat tax rate is effective through June 30, 2016.

In addition, the inspection tax remains at .0025 cents per gallon.

Notice to IFTA Jurisdictions - March 14, 2016  

NCDOR had a tax rate change for the 1st Quarter of 2016 which we failed to update prior to the 1st Quarter Matrix closing. Our tax rate has decreased to $0.35 per gallon beginning January 1, 2016 through June 30, 2016. The rate of $0.36 per gallon listed in the 1st Quarter Matrix is in error. Please note, this error is limited to the posting in the 1st Quarter Matrix and does not affect North Carolina's electronic filing systems.

We are requesting that all jurisdictions accept our late filing and honor our rate change for the 1st Quarter of 2016. 

In accordance with North Carolina Senate Bill 20, it has been determined that the motor fuels and alternative fuels tax rate for the period April 1, 2015 through December 31, 2015 will decrease from 37.5 cents to 36.0 cents per gallon.

During the 2015 legislative session, North Carolina Senate Bill 20 was passed which set the motor fuels tax rate at 36 cents per gallon and is effective April 1, 2015 through December 31, 2015.

In addition, the inspection tax remains at .0025 cents per gallon.

In accordance with NC General Statute 105-449.80, the Secretary of Revenue has determined that the motor fuels and alternative fuels tax rate for the period January 1, 2015 through June 30, 2015 will increase from 36.5 cents per gallon to 37.5 cents per gallon. 

The tax rate is computed using a flat rate of 17.5 cents per gallon and a variable wholesale component. The variable wholesale component is the greater of 3.5 cents or 7 percent of the average wholesale price of motor fuel during the preceding six-month base period. The average wholesale price is a weighted average of the wholesale prices of gasoline and No. 2 diesel fuel. The average price for the last base period was $2.8808 cents per gallon. During the 2013 legislative session, North Carolina House Bill 998 was passed, which capped the motor fuels tax rate at 37.5 cents per gallon. The cap is effective through June 30, 2015. In addition, the inspection tax remains at .0025 cents per gallon.

Effective April 1, 2015, Senate Bill 20 was passed changing the motor fuels tax rate. See announcement covering April 1, 2015 through December 31, 2015.