Tax Facts

The tax on gasoline sold in Vermont fluctuates every three months based on the average retail price during the prior three months.


This because of two different taxes: a Motor Fuel Transportation Infrastructure Assessment (MFTIA) and a Motor Fuel Tax Assessment (MFTA).


The MFTIA is at least 3.96 cents per gallon (cts/gal). While that's the floor, the MFTIA is set at 2% of the tax-adjusted retail price sold the prior quarter. As the cost of a gallon of gasoline goes up, so does the MFTIA.


The other tax, the MFTA, is at least 13.4 cts/gal. It also increases based on the price at the pump, but it has a ceiling of 18 cts/gal.


As of July 1, the MFTA is 15.91 cts/gal and the MFTIA is at 7.95 cts/gal. Total state and federal taxes add up to 55.36 cts/gal.


What will happen in October?  

If the average price of the pump in July, August and September goes up, so will the tax during the last three months of 2022. If the average price goes down, the tax will as well.


The MFTIAF was signed into law in 2009 and is found in Title 23, Chapter 28.