Alabama IFTA Fuel Tax Rate, 4th Quarter 2025

Matrix footnote #35 (ALABAMA): The Rebuild Alabama Act - Levies an incremental excise tax increase on gasoline and diesel fuel beginning September 1, 2019. The rate increases by $0.06 on 9/1/19, $0.02 on 10/1/2020 and $0.02 on 10/1/2021. Beginning October 1, 2023, and July 1 every other year thereafter, index of $0.01 per gallon increase or decrease based upon National Highway Construction Cost Index. New distribution for additional excise tax. Floor stocks tax return due on the last day of the third month following the tax increase. Due date for TXT returns changed from the 22nd to the 20th. ADOR required to notify taxpayer of rate change on or before March 1. Maximum bond for suppliers is $3,000,000 beginning 9/1/2019. Effective January 1, 2020, an annual license tax and registration fee is imposed on each battery electric vehicle ($200) and each plug-in hybrid electric vehicle ($100) operated on Alabama public highways. Beginning July 1, 2023 and every fourth year thereafter, the additional license tax and registration fee shall increase by three dollars ($3). In no case shall the battery electric vehicle fee be reduced to less than $150 and the plug-in hybrid electric vehicle fee be reduced to less than $75.