Iowa IFTA Fuel Tax Rate

Matrix footnote #25 (IOWA): LNG is measured in Diesel Gallon equivalents of 6.06 pounds of liquefied natural gas and CNG is measured in Gasoline Gallon equivalents of 126.67 cubic feet. Methanol is not subject to Iowa fuel taxes unless blended with other motor fuels for use in an aircraft or for propelling motor vehicles. Hydrogen fuel will have a tax rate of $0.65 per gallon beginning January 1, 2020. The gallon of hydrogen is based on the diesel gallon equivalent or 'dge', and is two and forty-nine hundredths pounds. Effective July 1, 2023, Iowa has an Electric Fuel Tax Rate of two and six-tenths cents for each kilowatt hour ($0.026 per kWh) of electric fuel dispensed into an EV battery or energy storage device. This does not apply to electric fuel dispensed at residences. Effective July 1, 2024, the biodiesel B-20 or Higher Undyed is a new fuel group and replaces the biodiesel B-11 or Higher Undyed fuel group to have a lower fuel tax rate. Additionally, biodiesel B-11 to B-19 falls into the same taxation category as undyed special fuel (diesel).