Understanding the Gas Guzzler Tax for vehicle imports
Federal excise tax on fuel-inefficient vehicles
The Gas Guzzler Tax (GGT) is a federal excise tax imposed on the sale of new vehicles that do not meet certain fuel economy standards. This tax was established by the Energy Tax Act of 1978 to encourage the production and purchase of fuel-efficient vehicles.
The tax applies at the time of vehicle import and is collected by U.S. Customs and Border Protection along with other import duties and fees.
The Gas Guzzler Tax applies to passenger cars with a combined fuel economy less than 22.5 mpg.
The following vehicle types are completely exempt from the Gas Guzzler Tax:
Good News
Most imported vehicles fall into these exempt categories (over 95% of vehicles).
The amount of tax depends on the vehicle's fuel economy rating. The lower the fuel economy, the higher the tax:
| Fuel Economy (MPG) | Tax Amount |
|---|---|
| At least 22.5 | $0 (No tax) |
| At least 21.5 but less than 22.5 | $1,000 |
| At least 20.5 but less than 21.5 | $1,300 |
| At least 19.5 but less than 20.5 | $1,700 |
| At least 18.5 but less than 19.5 | $2,100 |
| At least 17.5 but less than 18.5 | $2,600 |
| At least 16.5 but less than 17.5 | $3,000 |
| At least 15.5 but less than 16.5 | $3,700 |
| At least 14.5 but less than 15.5 | $4,500 |
| At least 13.5 but less than 14.5 | $5,400 |
| At least 12.5 but less than 13.5 | $6,400 |
| Less than 12.5 | $7,700 |
For more information about the Gas Guzzler Tax, you can visit: