How to File a Highway Use Tax

If you own or operate a vehicle that weighs over 55,000 pounds and plan to drive it on public highways, you'll need to pay the federal highway use tax or heavy vehicle use tax. If you don't already know how to file a highway use tax form, the good news is that it's a relatively easy process you can do online. 

The American Association of State Highways and Transportation Officials started the heavy vehicle use tax (HVUT) because they found that heavier vehicles cause a lot of damage when driving on highways. In fact, some reports claim that heavier vehicles weighing 55,000 pounds or more tend to cause 160,000 times more damage than the typical car. As such, this puts immense additional stress on highways, hence the highway use tax. 

Whether you own a fleet or work as an owner-operator, it's crucial to understand your different tax responsibilities. It's also important to recognize that different states have different laws and regulations regarding heavy vehicle use on the highway. For example, the New York Highway Use Tax applies to vehicles that are heavier than 18,000 pounds, but we'll discuss this more below. 

Exemptions for the Highway Use Tax

Federally, vehicles weighing 55,000 pounds or more are subject to the highway use tax. 

However, as with most taxes, there are certain vehicles that are exempt from paying the highway use tax. These include:

• Those not considered highway motor vehicles, like off-highway vehicles and mobile machinery
• Agriculture vehicles with less than 7,500 annual travel miles
• Qualified blood collector vehicles
• Commercial vehicles with less than 5,000 annual travel miles 

Highway Use Tax Regulations for Each State

Knowing how to file a highway use tax is important for anyone that operates a vehicle weighing more than 55,000 pounds, but you should also be familiar with the regulations set by different states, especially if you plan on crossing any state lines during business routes. 

Different states have different requirements regarding the highway use tax. For example, these states require commercial motor vehicles to pay a highway use tax when crossing their state lines:

• New York: The NY Highway Use Tax applies to vehicles greater than 18,000 pounds
• Oregon: Vehicles weighing more than 26,000 pounds that enter Orgeon must pay the state's highway use tax. 
• Kentucky: Kentucky requires vehicles that are heavier than 60,000 pounds to have a Highway Use License (KYU).
• New Mexico: Vehicles weighing over 26,000 pounds are subject to New Mexico's Weight Distance Tax.

If you know which states you'll be operating in throughout the year, it helps to do some research and double-check which taxes you may be responsible for paying. 

Other Highway Use Tax Rates to Know

In addition to the state-by-state highway use taxes, you should be familiar with the general highway use tax rates. It's helpful to know these rates before the tax-filing due date arrives so you can plan accordingly.

For example, if your vehicle weighs less than 55,000 pounds, then you do not have to pay the heavy vehicle use tax. However, for vehicles that weigh between 55,000 and 75,000 pounds, you'll have to pay a tax rate of $100 plus an additional $22 per 1,000 pounds

For vehicles that weigh more than 75,000 pounds, you must pay a maximum tax rate of $550. To determine the exact amount of taxes that you need to file and pay, you need to complete a Form 2290. 

What to Know About Form 2290

You must complete a Form 2290 when filing the highway use tax.

When completing this form, you need to determine the gross taxable weight of your eligible motor vehicle. You can do this by adding the following weights:

• The weight of your vehicle when it is empty and fully equipped. 
• The weight of the trailer or semitrailer when unloaded and fully equipped. 

Adding these two weights together gives you the vehicle's taxable gross weight, which you will use when completing the 2290 Form. 

If you still feel lost about how to complete and file the 2290 Form, you're not alone. Tax returns, tax forms, and other regulations that fleets need to follow can often cause confusion. Fortunately, we're here to help. 

FMCA Filings knows that it can often feel overwhelming to navigate the various state and federal regulations that carriers and owner-operators need to follow to stay compliant. We can help you complete and file the 2290 Form and learn more about the highway use fee return process, exemption eligibility, and more. 

If you want to learn more about how to file a highway use tax, how to maintain New York highway use tax (HUT) status, or other information, reach out to FMCA Filings by filling out our online contact form or speaking with one of our professionals via our Live Agent Chat.