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Iowa: Motor Fuel Tax Increase

  • Feb 27, 2015 | Gail Cole

 Transportation in Iowa need more funds.

Motor fuel tax in Iowa will increase by 10 cents per gallon, effective July 1, 2015. Additional revenue will fund various transportation projects around the state.

Senate File 257 imposes the following fuel tax rates:

  • Compressed natural gas: 31 cents per gallon (up from 21 cents).
  • Liquefied natural gas: 32 cents per gallon (up from 22 cents).
  • Liquefied petroleum gas: 30 cents per gallon (up from 20 cents).

Additional rates for special fuels are explained in detail in SF 257, or in the Iowa Department of Revenue fuel tax FAQs.

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photo credit: Downtown Cedar Rapids via photopin (license)


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.