Auto Facts: Excise Tax on Trucks (7/5/20)

Auto Facts with CARA
Sunday, July 5th
What is the Federal Excise Tax on Trucks?  The Federal Excise Tax (FET) on heavy-duty trucks was first imposed in 1917 to help pay for World War I (Which has ended, but not the tax). This tax on most new heavy-duty trucks, tractors and trailers was originally 3% and has now grown to 12%.  
As the highest excise tax on a percentage basis that Congress levies on a product, the FET often adds as much as $12,000- $22,000 to the price of a new heavy-duty truck.