Mid-year reminder – It’s time to pay heavy vehicle use tax
Filing taxes on your vehicles is key to keeping your fleet in compliance. One of those taxes is the federal heavy vehicle use tax (HVUT). The new HVUT tax year begins July 1. Taxes for 2024–2025 are due by August 31.
Be ready to file Form 2290 and pay the tax if your company has vehicles that are:
- Used on the highway;
- With a taxable gross weight of 55,000 pounds or more; and
- Registered in the U.S., Canada, or Mexico.
Which vehicles are subject to the tax?
HVUT applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more (including trucks, tractors, and buses). For this program, “taxable gross weight” means:
- The empty gross weight of the vehicle, plus
- The empty weights of any attached trailers, plus
- The heaviest weight of the loads the vehicle and/or trailers will carry.
The tax applies regardless of whether the trucks operate interstate or intrastate.
A “highway motor vehicle” includes any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions.
When to file (Hint: It’s not just annually)
The tax year for HVUT starts on July 1 and goes through June 30 of the following year. For vehicles registered and operating in July, you must file the 2290 and pay the tax by August 31.
But there’s more. Many HVUT filers are subject to additional, off-cycle HVUT filings throughout the year.
Adding a truck: If you place an additional taxable truck registered in your name on the road during any month other than July, you are liable for the tax. The amount is prorated for the months during which it was in service. File Form 2290 for these trucks by the last day of the month following the month the vehicle was first used on public highways.
Weight increases: Returns must also be filed when the taxable gross weight of a vehicle increases during the tax period.
Suspended vehicles operated over 5,000 miles: A return must also be filed if a suspension was originally filed because the vehicle expected to operate 5,000/7,500 or fewer miles during the tax period but then exceeded that amount prior to the end of the tax period.
How much will this cost?
Tax on a 55,000-pound vehicle starts at $100 and increases by $22 for every 1,000 pounds over 55,000 pounds, so a 60,000-pound vehicle would cost $210. However, vehicles weighing 75,000 pounds or more max out at $550 in taxes.
Reporting for low-mileage trucks
If you expect to operate your vehicle 5,000 miles or less during the reporting period (7,500 miles or less for agricultural vehicles), no tax payment is required. However, you still must:
- File a Form 2290 and Schedule 1, and
- Declare these vehicles as suspended from the tax.
If you claim a suspension but then operate the vehicle beyond the 5,000/7,500 miles limit, you must file an amendment and pay the tax.
Key to remember: Carriers operating vehicles weighing 55,000 pounds or more must file heavy vehicle use tax with the IRS. File by August 31 each year and whenever you add a new vehicle.