Highway Use Tax

Highway Use Tax: What It Is and Who Needs to Pay It

If your business operates heavy vehicles on public highways, you might need to pay the Highway Use Tax (HUT). This federal tax helps fund highway maintenance and infrastructure projects. Understanding HUT requirements is essential to avoid penalties and maintain compliance.

What is the Highway Use Tax?

The HUT is an annual tax imposed on vehicles with a gross weight of 55,000 pounds or more. The tax is due for each vehicle you operate, and the amount varies based on the vehicle’s weight.

Who Needs to Pay?

If you own or operate vehicles used on public highways with a gross weight of 55,000 pounds or more, you’re generally required to pay the HUT. This includes:

  • Trucks
  • Truck tractors
  • Buses

Certain vehicles are exempt from the HUT, including those used by government agencies, mass transit authorities, and non-profit organizations.

How to Calculate and Pay the Tax

The HUT amount is based on a vehicle’s taxable gross weight, which includes the vehicle’s unloaded weight, any trailers, and the maximum load typically carried. The tax rate increases incrementally with the weight of the vehicle. You can file and pay the HUT using IRS Form 2290.

Important Deadlines

The HUT must be filed by the last day of the month following the month the vehicle was first used on public highways during the tax period (July 1st to June 30th). For example, if a vehicle is first used in August, the HUT is due by September 30th.

Prineville Insurance: Your Partner for Transportation Compliance

Navigating federal tax requirements for your commercial vehicles can be complex. At Prineville Insurance, we’re here to help you understand your obligations, ensure you’re filing correctly, and avoid potential penalties. We can also assist with other insurance needs related to your commercial fleet.

Don’t let HUT compliance become a burden. Contact us today for guidance and support in meeting your tax obligations for your commercial vehicles.

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