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Motor fuel and highway diesel motor fuel tax suspension ending

End to suspension of tax on fuels

The suspension of the following taxes on motor fuel and highway diesel motor fuel will be lifted on January 1, 2023:

  • excise tax (Article 12-A)
  • prepaid sales tax and state sales and use taxes (Article 28)
  • the additional state sales and use tax imposed in the Metropolitan Commuter Transportation District (MCTD)

Beginning January 1, 2023:

  • distributors must charge these taxes on any sale of previously untaxed motor fuel in inventory and remit the tax due to the Tax Department with their motor fuel, diesel motor fuel, and prepaid sales tax returns, and
  • retail sellers of motor fuel and highway diesel motor fuel must again include in the pump price state and local sales taxes and any excise taxes passed through to the retailer by a distributor.

Effective June 1, 2022, and continuing through December 31, 2022, the following taxes on motor fuel and highway diesel motor fuel were suspended:

  • excise tax (Article 12-A),
  • prepaid sales tax, and state sales and use taxes (Article 28), and 
  • the additional state sales and use tax imposed in the Metropolitan Commuter Transportation District (MCTD).

Local sales and use taxes were not suspended. The Tax Law authorizes counties and cities to elect a cents-per-gallon or percentage rate sales tax method on fuel. See Which localities have elected a cents-per-gallon rate for their local sales tax on fuels?

During the suspension period

  • Distributors and wholesalers were not required to remit the eight cents ($.08) per gallon excise tax or the prepaid sales taxes on motor fuel and highway diesel motor fuel and were required to exclude these taxes from the price on any sale of these fuels.
  • Retail sellers of motor fuel and highway diesel motor fuel were required to exclude the excise tax and New York State/MCTD sales tax from the price of these fuels at the pump.

See Important Notice N-22-1, Suspension of Certain Taxes on Motor Fuel and Diesel Motor Fuel Beginning June 1, 2022.

Frequently asked questions

Motor carrier questions on IFTA and fuel use tax

When you purchased motor fuel or diesel motor fuel from a retail seller of motor fuel in New York State from June 1, 2022, through December 31, 2022, the purchase did not include excise and state sales taxes.

However, the New York State fuel use tax (Article 21-A) was not suspended. You must still pay any fuel use tax due unless your vehicle is exempt. For a list of exempt vehicles see Pub 536International Fuel Tax Agreement (IFTA) A Guide for New York State Carriers.

More information

  • Important Notice N-22-1, Suspension of Certain Taxes on Motor Fuel and Diesel Motor Fuel Beginning June 1, 2022
  • Publications:
Updated: