What's New for Petroleum Tax

Minnesota Motor Fuel Tax Rate for 2025

According to state law, the Minnesota Motor Fuel Tax increased on January 1, 2025. The new combined rate is $0.318, consisting of the $0.283 excise tax rate for gasoline and special fuel products, plus the $0.035 per gallon debt service surcharge. Alternative fuels rates also increased. 

For a list of our current rates, go to Petroleum Tax Fuel Excise Tax Rates and Fees. 

Minnesota Qualified Service Station Credit

Effective January 1, 2025, the rate for qualifying service station credit changed for North Dakota and began for South Dakota.

• North Dakota is $0.058 per gallon for both gasoline and diesel fuel.
• South Dakota is $0.022 per gallon for gasoline and $0.008 per gallon for diesel fuel.

To claim the qualifying service station credit use schedule code 5PN for North Dakota and 5PS for South Dakota.

For more details about this credit, go to Minnesota Statute 296A.16, subd. 5.

Petroleum Debt Service Surcharge Rate

The Debt Service Surcharge Rate will remain at $0.035 per gallon for July 1, 2024 – June 30, 2025.

The surcharge is determined by amount needed to pay the debt service on the trunk highway bond which is used to construct, improve, and maintain Minnesota's interstates and highways.

The surcharge is included in the per gallon fuel rate. For example, the Minnesota gasoline excise tax is $0.25 per gallon and the surcharge is $0.035 per gallon for a combined rate of $0.285 per gallon.