What is Heavy Highway Vehicle Use Tax (HVUT)?
The Heavy Highway Vehicle Use Tax (HVUT) is a federal tax imposed on heavy vehicles (trucks, truck tractors, and buses with a taxable gross weight of 55,000 pounds or more) operating on public highways. It is reported and paid using IRS Form 2290.
The main purpose of HVUT is to fund highway construction, maintenance, and safety projects. The money collected goes directly into the Highway Trust Fund, which helps maintain the infrastructure necessary for commercial transportation. Since large trucks cause more wear and tear on roads, this tax ensures that those using the highways the most contribute to their upkeep.
Who Needs to File?
Owners of heavy vehicles, including independent truckers, logistics companies, and fleet owners, are required to file Form 2290 and pay HVUT every year. The tax applies to vehicles used for commercial, industrial, and passenger transportation.
There are a few vehicles that qualify for tax suspensions or exemptions, including:
- Government-owned vehicles
- Agricultural vehicles driven 7,500 miles or less per year
- Other vehicles driven 5,000 miles or less per year
However, even if a vehicle qualifies for a suspension, it is still required to file Form 2290 to claim this status.
How is HVUT calculated?
The amount owed for HVUT is based on the taxable gross weight of the vehicle. The heavier the vehicle, the higher the tax rate. Trucks that weigh 55,000 pounds or more start at $100 per year, with an additional $22 for every 1,000 pounds over that weight limit. The maximum HVUT is $550 per vehicle per year.
When to File HVUT?
The HVUT tax filing period is from July 1 to June 30. Form 2290 must be filed by August 31 each year. If a truck is purchased and put into use after July, the tax must be filed by the last day of the month following the vehicle’s first use on public roads.
Penalties for Late Filing
Failing to pay HVUT on time can lead to penalties and interest charges. The penalty for late filing is 4.5% of the tax due. This will increase monthly for up to five months. The penalty for late payment is 0.5% of the tax owed, plus interest charges. It can also result in delays in vehicle registration since Schedule 1 is required for renewal.