Tire Excise Tax: Worked Examples
The federal excise tax (FET) on tires comes down to one line of arithmetic: subtract 3,500 from the maximum rated load capacity, divide by 10, then multiply by the rate. The examples below apply that to situations a manufacturer or importer actually faces. For the rate table and category definitions, start with the 2026 tire excise tax rates. For the basics of the formula, see how much FET on a tire.
All company names, tire ratings, and quantities here are made up. Each rating divides evenly by 10 so that the math stays clean. "Standard" below means a taxable tire other than a bias ply or super single tire.
Per-tire tax at different load capacities
| Tire | IRS No. | Over 3,500 lbs | 10-lb units | Rate | Tax per tire |
|---|---|---|---|---|---|
| Standard tire, 3,500 lbs | 108 | 0 | 0 | $.0945 | $0 |
| Standard tire, 4,800 lbs | 108 | 1,300 | 130 | $.0945 | $12.285 |
| Bias ply tire, 5,200 lbs | 109 | 1,700 | 170 | $.04725 | $8.0325 |
| Super single, not for steering, 9,000 lbs | 109 | 5,500 | 550 | $.04725 | $25.9875 |
| Super single for steering, 8,200 lbs | 113 | 4,700 | 470 | $.0945 | $44.415 |
Look at the last two rows. The steering tire has a lower rating but owes far more per tire, because IRS No. 113 carries the full rate. Category can matter more than capacity, so identify the category first.
Notice too how long the decimals run. Per-tire amounts go to three or four places, which is why the tax on a whole batch is cleaner to figure than a rounded tax per tire times the count.
Example 1: a mixed quarter for an importer
Ridgeway Tire Imports sells these tires in the fourth quarter of 2026:
| Tire | Quantity | Tax per tire | Tax |
|---|---|---|---|
| Standard, 4,800 lbs | 200 | $12.285 | $2,457.00 |
| Bias ply, 5,200 lbs | 60 | $8.0325 | $481.95 |
| Non-steering super single, 9,000 lbs | 40 | $25.9875 | $1,039.50 |
| Steering super single, 8,200 lbs | 20 | $44.415 | $888.30 |
| Total | 320 | $4,866.75 |
Form 720 asks for both the number of tires and the tax on each line, so Ridgeway enters:
- IRS No. 108: 200 tires, $2,457.00.
- IRS No. 109: 100 tires, $1,521.45 (the bias ply and the non-steering super singles share this line).
- IRS No. 113: 20 tires, $888.30.
The total of $4,866.75 is more than $2,500. If it reflects Ridgeway's net Part I liability for the quarter, semimonthly deposits are required, and each period is recorded on Schedule A. A business with $2,500 or less could pay with the return but would still complete Schedule A.
Example 2: tires that arrive on imported trailers
Tires don't need to arrive by themselves to be taxed. Publication 510 treats the importer of an article equipped with taxable tires as the manufacturer of those tires. The importer is liable when the article is sold, except in the case of an automobile bus chassis or body with tires.
Say Lakeshore Trailer imports 20 trailers and sells them all in one quarter. Each carries 4 standard tires rated at 4,500 pounds.
- Tires: 20 x 4 = 80.
- Per tire: (4,500 - 3,500) / 10 = 100 units, and 100 x $.0945 = $9.45.
- Tire tax: 80 x $9.45 = $756.00 on IRS No. 108.
Any other tax on the trailers themselves is a separate question. Our guide to FET on trailers and truck tires looks at the two together.
Example 3: a manufacturer that owns its own stores
Timing shifts when a manufacturer sells through its own retail stores. The tax is imposed when the tires are delivered to the manufacturer-owned store, not when a customer buys them.
Say a manufacturer delivers 100 standard tires rated at 4,800 pounds to its own store on March 28. Customers buy them in April and May. The tax of 100 x $12.285 = $1,228.50 belongs to the January through March quarter, based on the delivery date.
Example 4: tax-paid tires that later qualify for a credit
Ridgeway later exports 10 of the 200 standard tires it paid tax on. A credit or refund, without interest, is allowable on tax-paid tires that have been exported. The person who paid the tax is the one eligible to claim it.
- Claim: 10 x $12.285 = $122.85.
- Where it goes: Form 720, Schedule C, line 14f, credit reference number (CRN) 396, showing the number of tires.
- What to include: a detailed description, how you figured the amount, and any supporting information.
Line 14g (CRN 304) is for bias ply and non-steering super single tires, and line 14h (CRN 305) is for steering super singles. Generally, the claim must be filed within 3 years from when the return was filed or 2 years from when the tax was paid, whichever is later. Other qualifying events include sales to a state or local government or nonprofit educational organization for its exclusive use. Our tire excise tax exemptions post covers the full list.
Run your own figures, then file
For a single tire type, the tire excise tax calculator is the quickest check. For a whole quarter, group your tires by IRS No., work out the tax for each load capacity, and add them up. That gives you the two figures each line needs.
EasyFile720 then takes you through reporting the tire tax on Form 720 with the rates built in, as part of its guided online filing. It covers IRS Nos. 108, 109, and 113, Schedule A, and Schedule C if you have a tire credit. Validations catch common mistakes before you submit. You can create an account for free, with no credit card needed to start, and each filing costs $39.95 when you file.
FAQ
What if a tire rating doesn't land on an even 10 pounds?▼
The IRS sources we used state the rate for each 10 pounds but don't explain how to treat a remainder. The examples in this article use ratings that divide evenly. Check the regulations or ask a tax professional if your ratings don't.
Should I round the tax on each tire?▼
These sources don't set a per-tire rounding rule. This article keeps every decimal until the quarter total, so rounding doesn't build up tire by tire.
Does a higher sale price mean more tire tax?▼
No. The rate is based on maximum rated load capacity, not on the price of the tire.
Are retreaded tires taxed again?▼
Domestically recapped or retreaded tires are exempt if they were sold previously in the United States and were taxable tires at the time of that sale.
File the tire excise tax online
Create a free account with no credit card and build your return. You pay $39.95 only when you file. EasyFile720 is an IRS-authorized e-file provider, and you get an acknowledgment when the IRS accepts your return.
Sources: Instructions for Form 720 (Rev. June 2026); Form 720 (Rev. June 2026); IRS Publication 510 (Rev. December 2025). General information, not tax advice. Confirm how the rules apply to you with a qualified advisor or the IRS.
