Tuesday, November 22, 2022

Motor Fuels Tax Rate Will Increase To 40.5 Cents Per Gallon In 2023

The motor fuels and alternative fuels tax rate for the period of Jan. 1, 2023, through Dec. 31, 2023, will increase from 38.5 cents to 40.5 cents per gallon.
Raleigh, N.C.
Nov 22, 2022

The motor fuels and alternative fuels tax rate for the period of Jan. 1, 2023, through Dec. 31, 2023, will increase from 38.5 cents to 40.5 cents per gallon.

The motor fuel 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 .0025 cents per gallon.

Taxpayers with questions should contact the Excise Tax Division at (919) 707-7500 or toll free (877) 308-9092.