The F.e.t. Tax On Tires: Everything You Need To Know In 2023

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If you're in the market for new tires, you may have heard of the Federal Excise Tax (F.E.T.) that applies to certain types of tires. As of 2023, this tax is still in effect, and it's important to understand what it is and how it may impact your tire purchase. In this article, we'll explain the F.E.T. tax on tires, what types of tires are affected, and how much you can expect to pay. We'll also offer some tips on how to save money on your tire purchase.

What is the F.E.T. Tax on Tires?

The F.E.T. tax on tires is a federal tax that is applied to the sale of certain types of tires. This tax was first introduced in 1918 as a way to help fund World War I, and it has been periodically adjusted over the years. The current rate of the F.E.T. tax on tires is 15%, which is calculated based on the price of the tire at the time of sale.

What Types of Tires are Affected?

Not all tires are subject to the F.E.T. tax. The tax applies only to certain types of tires, including: - Tires used on highway vehicles, such as cars, trucks, and buses - Tires used on trailers and semi-trailers - Tires used on off-road vehicles, such as farm equipment and construction equipment The F.E.T. tax does not apply to tires used on airplanes, motorcycles, or bicycles.

How Much Can You Expect to Pay?

The amount of F.E.T. tax you'll pay depends on the price of the tire at the time of sale. For example, if you purchase a set of tires for $500, you'll pay an additional $75 in F.E.T. tax (15% of $500). This tax is generally included in the price of the tire, so you won't see it listed separately on your receipt.

How to Save Money on Your Tire Purchase

While the F.E.T. tax on tires is mandatory, there are some things you can do to save money on your tire purchase. Here are a few tips: 1. Shop around: Don't just buy tires from the first place you find. Shop around and compare prices at different retailers to find the best deal. 2. Look for deals: Many retailers offer promotions and discounts on tires, especially during certain times of the year (such as Black Friday). 3. Consider buying used: If you're on a tight budget, consider buying used tires. Just make sure to inspect them carefully for signs of damage or wear. 4. Maintain your tires: Proper tire maintenance can help extend the life of your tires, which means you'll have to replace them less often.

Conclusion

In conclusion, the F.E.T. tax on tires is a federal tax that applies to certain types of tires. While it may increase the cost of your tire purchase, there are ways to save money and still get the tires you need. By shopping around, looking for deals, considering used tires, and maintaining your tires properly, you can keep your costs down and ensure that your vehicle is equipped with safe and reliable tires.