The ethanol E-15 or Higher distribution percentage increased from 19.4% to 28.8% and now falls into a different fuel tax rate category. The fuel tax rate for fuel classified as E-15 or Higher, including Alcohol, will increase from $0.265 per gallon to $0.280 per gallon effective July 1.
The Department has updated the deduction rate for blended fuel sales. View the Iowa Fuel Tax Deduction for Blended Fuel Sales for more information for how to calculate that deduction.
Please refer to the tables below for all applicable tax rates and their effective dates.
You can view the Iowa Fuel Tax Information page for additional information.
Rates Changing on July 1, 2026
| Fuel Type | Current Rate | New Rate Effective 7-1-26 |
|---|---|---|
| Alcohol | $0.265 | $0.280 |
| Ethanol Blended Gasoline E-15 or Higher | $0.265 | $0.280 |
Rates Not Changing on July 1, 2026
| Fuel Type | Current Rate |
|---|---|
| Gasoline | $0.300 |
| Ethanol Blended Gasoline E-10 to E-14 (Gasohol) | $0.300 |
| Diesel (including Biodiesel B-19 and lower) (Special Fuel Undyed) | $0.325 |
| Biodiesel B-20 or Higher Undyed | $0.295 |
| Aviation Gasoline | $0.080 |
| Aviation Jet | $0.050 |
| Liquefied Petroleum Gas (LPG) | $0.300 |
| Liquefied Natural Gas (LNG) | $0.325 |
| Compressed Natural Gas (CNG) | $0.310 |
| Hydrogen | $0.650 |
| Electric Fuel | $0.026 per kWh |
Claims for fuel tax refunds must be calculated using the correct rates based on the date of purchase. Separate refund claims must be filed for invoices dated for periods prior to July 1, as well as those dated on or after July 1.
Revised Iowa Fuel Tax forms for the period starting July 1, 2026 will be released soon on the Department's Tax Forms Index.