The Maine fuel tax is 30 cents per gallon on gasoline and 31.2 cents per gallon on diesel, collected at the distributor level and built into the pump price. The money goes to the state Highway Fund for road and bridge work. If you burn fuel off-road for a commercial purpose, most of what you paid can come back through a Maine Revenue Services refund.
Rates by Fuel Type
Maine’s fuel excise taxes are set in Title 36 of the Maine Revised Statutes and apply per gallon.
- Gasoline: 30 cents per gallon under 36 MRSA §2903.1Maine State Legislature. Maine Code Title 36 – Tax Levied; Rebates
- Diesel and other distillates: 31.2 cents per gallon under 36 MRSA §3203.2Maine Legislature. Maine Code Title 36 – Tax Levied; Consignment Sales; Credited to Highway Fund
- Propane: 21.9 cents per gallon.2Maine Legislature. Maine Code Title 36 – Tax Levied; Consignment Sales; Credited to Highway Fund
- Compressed natural gas: 30 cents per gasoline-gallon equivalent.2Maine Legislature. Maine Code Title 36 – Tax Levied; Consignment Sales; Credited to Highway Fund
- Biodiesel: pure B100 is 28.7 cents per gallon. Blends under 90 percent biodiesel are taxed at the full diesel rate of 31.2 cents, so common blends like B20 carry the same tax as straight diesel.3Maine Revenue Services. Fuel Tax Rates
These rates don’t adjust automatically for inflation. Any change requires legislative action.3Maine Revenue Services. Fuel Tax Rates
Federal Tax on Top
Every gallon sold in Maine also carries a federal excise tax: 18.4 cents on gasoline and 24.4 cents on diesel, the diesel figure including a 0.1-cent surcharge for the Leaking Underground Storage Tank Trust Fund.4GovInfo. 26 USC 4081 – Imposition of Tax Added to the state rate, that’s about 48.4 cents per gallon in total excise tax on gasoline and roughly 55.6 cents on diesel.
If you qualify for a state refund on off-road use, a separate federal credit may be available on your income tax return using IRS Form 4136.5Internal Revenue Service. About Form 4136, Credit for Federal Tax Paid on Fuels The two claims are independent. Filing one doesn’t satisfy the other, and the deadlines are not the same.
Refunds for Off-Road Commercial Use
Fuel taxes fund highways, so Maine refunds most of the tax on fuel that never touches a public road. Under 36 MRSA §2908, anyone who buys gasoline and uses it for a commercial purpose other than operating a registered motor vehicle on Maine highways can apply for reimbursement.6Maine State Legislature. Maine Code Title 36 – Refund of Tax in Certain Cases; Time Limit A parallel provision covers diesel and other special fuels. The word that trips people up is “commercial.” Fueling a recreational ATV does not qualify, even though it’s off-road.
Typical qualifying uses include farm tractors and harvesting equipment, commercial fishing vessels, logging equipment such as skidders and loaders, and stationary engines running generators or industrial machinery.
The refund equals the full tax paid minus one cent per gallon, which the state keeps as an administrative fee.6Maine State Legislature. Maine Code Title 36 – Refund of Tax in Certain Cases; Time Limit On gasoline you get back 29 of the 30 cents. On diesel you get back 30.2 of the 31.2 cents. For a business burning thousands of gallons a year, the one-cent holdback matters.
Refunds for Government and Municipal Buyers
State agencies, counties, cities, towns, school districts, quasi-municipal corporations such as water and sewer districts, and the Maine Turnpike Authority all qualify for relief. Bulk purchases from a distributor can be made tax-exempt at the point of sale as long as the distributor keeps delivery slips identifying the purchaser.7Maine Revenue Services. Excise Tax Bulletin – Gasoline
Retail purchases work differently. When a town employee fills a municipal truck at a regular gas station, the excise tax is included in the price. The municipality then files for a refund using the Political Subdivision Fuel Tax Refund Application (Form GTR-PS). Federal agencies buying fuel in Maine use the same process. Unlike the commercial refund, political subdivision refunds return the full tax with no one-cent-per-gallon deduction.7Maine Revenue Services. Excise Tax Bulletin – Gasoline A political subdivision can also assign its refund rights to a fuel supplier by contract, provided both parties complete the required affidavit.
How to File a Refund Claim
Submit the appropriate application to Maine Revenue Services with copies of receipts, invoices, or supplier statements for every purchase you’re claiming. Each supporting document must show the supplier’s name and address, the purchaser’s name, the purchase date, the type and number of gallons, the price per gallon, and the excise tax either broken out or clearly stated as included.7Maine Revenue Services. Excise Tax Bulletin – Gasoline
Most refund applications must be filed within 12 months of the fuel purchase date, and applications received after the deadline are denied.8Maine Revenue Services. Refund Programs Some programs allow up to 18 months, so check the instructions for the category that applies to you. There is no appeals process or late-filing exception for a missed deadline.
A practical habit: keep a folder, physical or digital, and drop every fuel receipt into it as purchases happen. Reconstructing a year of invoices from scratch at deadline time is the main reason businesses leave money on the table.
Dyed Diesel: Buying It Tax-Free Instead
Rather than paying the tax and claiming a refund, many off-road users buy dyed diesel, which is sold without the highway excise tax. The red dye marks the fuel as untaxed, and inspectors can test for it. The trade-off is a serious penalty if any of it ends up in a vehicle on a public road.
Under 36 MRSA §3204-B, driving on Maine’s public roads with dyed fuel in your tank is a Class D crime with a mandatory minimum fine of $1,000 that the court cannot reduce. Refusing to let an inspector test the fuel is treated as evidence the tank contains dyed fuel. State and municipal vehicles are exempt from the prohibition.9Maine State Legislature. Maine Code Title 36 – Dyed Fuel; Prohibition on Highway Use
The federal penalty stacks on top. Under 26 USC §6715, the IRS imposes a fine of $1,000 or $10 per gallon, whichever is greater, and the $1,000 base is multiplied by the number of prior violations.10Office of the Law Revision Counsel. 26 USC 6715 – Dyed Fuel Sold for Use or Used in Taxable Use A first offense with 200 gallons of dyed diesel costs $2,000 in federal penalties. A second offense with the same volume costs $4,000. Combined with Maine’s separate $1,000 minimum plus any back taxes, a single roadside inspection can run into thousands.
IFTA for Interstate Truckers
Commercial carriers running trucks across state lines handle fuel taxes through the International Fuel Tax Agreement, administered in Maine by the Bureau of Motor Vehicles. IFTA covers qualified motor vehicles, generally those with two axles and a gross vehicle weight above 26,000 pounds, or any vehicle with three or more axles, that travel in at least two IFTA jurisdictions.
Under IFTA, carriers file a single quarterly return in their base jurisdiction and report miles driven and fuel purchased in every state. The system redistributes the tax so each state collects based on miles driven within its borders. Buy most of your fuel in a low-tax state but drive heavily in Maine, and you’ll owe Maine the difference. The reverse produces a credit.
IFTA returns are due the last day of the month following each quarter’s close: April 30, July 31, October 31, and January 31. Maine special fuel users who file IFTA returns through the state also have separate quarterly filing requirements with Maine Revenue Services, due by the last day of the month following each quarter.11Maine Revenue Services. List of Forms and Due Dates Mileage logs by jurisdiction and organized fuel receipts, kept quarterly, are what keep an audit from turning into estimates and assessments.