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Heavy Vehicle Use Tax: whether and how to pay it

Heavy Vehicle Use Tax (HVUT) is a federal tax in the United States levied on heavy trucks weighing 55,000 pounds (24,947 kg) or more if they are used on public roads. It must be filed annually via IRS Form 2290 and paid no later than August 31 (tax period is July 1 to June 30). It is also mandatory to keep proof of payment (Schedule 1) in order to register or renew registration with the DMV.

What is Heavy Vehicle Use Tax (HVUT)?

Heavy Vehicle Use Tax (HVUT) is an annual tax administered by the Internal Revenue Service (IRS) to fund the construction, maintenance, and repair of federal highways. The tax is levied on owners and operators of heavy vehicles that meet certain criteria.

What is HVUT used for?

  • The tax revenue is used to build and repair infrastructure that ensures the safe and efficient transportation of goods and passengers.
  • According to the Federal Highway Administration, HVUT generates more than $1 billion annually, which is distributed among states according to the needs of their roads and bridges.
  • This means that every truck and commercial vehicle actually finances the maintenance of the US road network.

Who is required to pay HVUT?

Mandatory HVUT payers

  1. Trucks and tractors
    • Maximum allowable weight of 55,000 pounds or more.
    • Examples: large trucks for interstate transportation, tractor-trailers.
    • Even if a truck is used partially for private purposes, its commercial use on public roads requires payment of HVUT.
  2. Buses
    • Commercial buses that transport passengers and have a gross weight of more than 55,000 pounds.
    • Examples: intercity tour buses, large school buses.
  3. Transportation companies engaged in interstate transportation
    • Vehicles that travel on the roads of multiple states are subject to the tax.
    • This applies to trucks, trailers, and specialized vehicles owned by commercial companies.

Exemptions and Exclusions from HVUT

Not all vehicles are subject to HVUT. Exemptions include:

  1. Passenger cars and small commercial vehicles
    • Cars, pickups, or cargo vans with a maximum gross weight of less than 55,000 pounds.
    • Even if the vehicle is used for business, HVUT does not apply, but tax returns may be required in other forms.
  2. Vehicles weighing less than 55,000 pounds

This includes most medium-duty trucks, minibuses, and light trailers.

  1. Vehicles used on a limited basis
    • If a vehicle is used less than 5,000 miles per year (or 7,500 miles for agricultural vehicles), it may be exempt from HVUT.
    • In such cases, IRS Form 2290 is still filed, but no payment is made.
    • Example: A farm truck that transports crops only a short distance within the state may file the form for documentation purposes but not pay the tax.

Additional nuances

  • Vehicle modifications: If a vehicle has been upgraded or equipped with additional modules that increase its weight to 55,000 pounds or more, it becomes subject to HVUT.
  • Combination vehicles: For tractor-trailers, the total weight is taken into account, even if the tractor itself is less than 55,000 pounds.
  • International transportation: If a truck crosses the border into Canada or Mexico, the HVUT payment requirement does not change, as the tax is levied for the use of U.S. roads.

How is the HVUT tax calculated?

The amount depends on the weight of the vehicle.

Vehicle weightAnnual HVUT rate
55,000–75,000 pounds$100 + $22 for every 1,000 pounds over 55,000
75,000 pounds and above$550 (maximum)

Example:

 Truck with a maximum weight of 65,000 pounds → $100 + (10 × $22) = $320 per year.

How and when to pay HVUT?

Step 1. Fill out IRS Form 2290

Form 2290 is the main document that confirms payment of HVUT.

The form contains the VIN of each vehicle, the date of initial registration and use on public roads, the maximum allowable weight of the vehicle, mileage, and other information related to taxation.

For transportation companies with a large fleet of vehicles, the form can be completed electronically for convenience and accuracy.

Example: A California company has three 60,000-pound tractors. For each vehicle, a separate line is filled out on Form 2290, indicating the VIN, date of purchase, and mileage.

Step 2. Submit the form and pay the tax

Available submission methods:

  1. Online via the IRS e-File system
    • The fastest and safest way.
    • After submission, you can immediately receive Schedule 1, which confirms payment of the tax.
    • The system automatically checks the VIN, tax amount, and correctness of the form.
  2. Through accredited intermediaries
    • Convenient for companies that do not have the time or experience to fill out the form themselves.
    • Specialists check all data, help avoid mistakes, and control payment.
    • After processing, you will receive a completed Schedule 1 for the DMV.
  3. By mail (for a small fleet)
    • Suitable for owners of one or two trucks.
    • You need to send the completed form, check or money, and copies of documents.
    • Processing time may take several weeks.

Step 3. Keep Schedule 1

Schedule 1 is a stamped document from the IRS confirming payment of HVUT. It is required to renew vehicle registration with the DMV.

Keep the original and copies, as the DMV will require this document during inspections or registration changes.

Example: A truck owner presents Schedule 1 to the DMV when renewing license plates. Without this document, registration renewal will be blocked.

Deadlines and important details

  1. Tax period: July 1 to June 30 of the following year.
  2. The main deadline for filing and payment is August 31 of each year.

If you miss this deadline, the IRS will impose fines and penalties, and the DMV may refuse registration.

  1. New vehicles

If you purchase a truck during the tax year, Form 2290 must be filed by the end of the month following the purchase. For example, if the truck was purchased on October 15, the form must be filed by November 30.

Practical tips for transportation company owners

  • Check the VIN and weight of the vehicle before filling out the form to avoid rejection by the IRS.
  • Use online services or intermediaries if you have a large fleet or complex cases (e.g., change of ownership, merger of companies).
  • Keep copies of all documents to quickly confirm tax payment to the DMV or during IRS audits.
  • Plan for HVUT payments in your company budget — even small fines or penalties can amount to hundreds of dollars per truck.

Consequences of HVUT delinquency

Failure to pay the Heavy Vehicle Use Tax (HVUT) on time can have serious financial and legal consequences for truck and bus owners. It is important to understand that the IRS and DMV actively monitor compliance and impose penalties for violations.

1. IRS penalty

4.5% of the unpaid amount per month — this penalty is charged for each month of delinquency. The maximum penalty is 25% of the unpaid tax liability.

Example:

 If your truck is subject to HVUT in the amount of $1,000 and you are 3 months late in paying:

  • Monthly penalty: $1,000 × 4.5% = $45
  • Total penalty for 3 months = $45 × 3 = $135
  • If the delay lasts more than 6 months, the penalty increases to $270, and so on up to the 25% maximum limit.

2. Additional penalty for late payment

0.5% per month on the unpaid amount is added to the base penalty. This percentage is calculated separately and increases the total cost of the delay.

Example:

 In the example of a $1,000 truck, the additional penalty for 3 months = $1,000 × 0.5% × 3 = $15. Together with the base penalty: $135 + $15 = $150

3. Interest on the amount owed

The IRS charges 0.54% interest per month on the amount of unpaid tax. This means that the debt increases every month, even if the tax is not paid in part.

Example:

 For a tax of $1,000, interest for 3 months = $1,000 × 0.54% × 3 = $16.2. Final debt amount = $1,000 + $150 (penalties) + $16.2 (interest) = $1,166.2

4. Denial of registration at the DMV

Schedule 1, which confirms payment of HVUT, is required to renew license plates. If the document is missing, the DMV will not renew the vehicle registration.

This can lead to vehicle downtime, inability to perform transportation, breach of contracts, and fines for operating an unregistered vehicle.

Example:

The company planned to renew the registration of its truck fleet on August 15. Due to the HVUT overdue, they do not have Schedule 1. The DMV refuses to renew the registration, and the trucks cannot go on the road until the debt is paid and confirmation is received.

Practical tips to avoid consequences

  1. Set a reminder for the August 31 deadline each year.
  2. Check your payment in advance via e-File or intermediaries to avoid technical problems.
  3. Use intermediaries such as Xtreet, which track deadlines and calculate the exact amount of tax and fees.
  4. Keep copies of Schedule 1 and payment receipts so you have documentation for the DMV and IRS.
  5. Take new vehicle purchases into account and submit the form within one month of purchase.

FAQ

1. How much does HVUT cost?

 Between $100 and $550 per year, depending on the weight of the vehicle.

2. Do all trucks have to pay HVUT?

 No, only those weighing 55,000 pounds or more.

3. What is IRS Form 2290?

 It is a form for declaring and paying HVUT. Without it, you cannot obtain Schedule 1.

4. What is Schedule 1?

 It is official confirmation from the IRS, which is required for DMV registration.

5. Can I submit documents by mail?

 Yes, but companies with 25+ vehicles are required to use e-File.

6. Is HVUT required for agricultural trucks?

 Yes, but those that travel less than 7,500 miles per year are exempt from payment.

7. What happens if I don't pay the tax on time?

 Penalties from the IRS + the DMV will not renew your plates.

8. Can I pay HVUT for several years in advance?

 No, the tax is paid annually for a new period.

9. Can I get an HVUT refund?

 Yes, if the vehicle has been taken out of service or has not exceeded the mileage limit (low mileage claim).

10. Does Xtreet help in case of IRS refusal?

 Yes, we check the documents, correct errors, and resubmit the application.

Conclusion

The Heavy Vehicle Use Tax (HVUT) is a key federal tax that funds US road infrastructure and regulates the use of heavy trucks on public roads. It is mandatory for trucks and buses weighing 55,000 pounds or more, and proper filing via IRS Form 2290 and obtaining Schedule 1 is necessary to maintain DMV registration.

Late or incorrectly completed documents result in financial penalties, interest charges, and registration suspension. To avoid mistakes and save time, many companies choose online services and intermediaries that help them complete the form correctly, verify data, and make payments.

Planning, accuracy, and timely submission of documents are key factors in the safe and efficient operation of your fleet, and HVUT becomes a tool for supporting the US road network.