Federal Excise Tax on New Vehicles

Federal Excise Tax on new vehicles is a tax imposed by the U.S. government on the sale of certain types of vehicles, primarily those weighing over 6,000 pounds, like trucks and SUVs. The tax is a percentage of the vehicle's purchase price, typically 12% for most vehicles. This tax is meant to generate revenue and can affect the total cost of buying a new vehicle. It’s usually included in the purchase price, so consumers pay it upfront without needing to file separately for it.