Motor fuel tax and carbon tax

Publication date: March 11, 2024

Motor fuel tax and carbon tax apply when you purchase or use fuel such as gasoline, diesel and propane, unless a specific exemption applies.

Carbon tax rates are set to increase on April 1, 2024. Find the carbon tax rate schedule on our Carbon tax rates by fuel type page.

If you're a deputy collector or retail dealer, you must determine your fuel inventory as of the end of day on March 31, 2024 and will be required to report and pay any additional security due by April 15, 2024. Find out more on our Report and pay additional security when tax rates change page.

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Motor fuel tax

Motor fuel tax applies to fuel sold for use or used to power internal combustion engines (e.g. cars, boats, airplanes, stationary engines etc.) and to propane for any use, unless a specific exemption applies.

If fuel (except propane) is sold for use other than in an internal combustion engine, motor fuel tax doesn't apply so long as specific invoicing and other requirements are met.

When the tax is charged on clear gasoline and clear diesel fuel there are also dedicated taxes (PDF, 240KB) added to the tax that apply in certain regions of the province and go to:

  • South Coast British Columbia Transportation Authority (TransLink)
  • British Columbia Transit Authority (BC Transit)
  • British Columbia Transportation Financing Authority (BCTFA)

Did you know?

If you're a person with a disability, you may be eligible for the fuel tax refund program for persons with disabilities that can help reduce your transportation costs.

Carbon tax

Carbon tax applies to the purchase or use of fuels such as gasoline, diesel, natural gas, heating fuel, propane and coal, unless a specific exemption applies. The use of fuel includes all uses, even if the fuel isn't combusted. Carbon tax also applies to combustibles (specifically peat, tires, and asphalt shingles) when they are burned to produce heat or energy.

Tax rates

The tax rates for motor fuel tax and carbon tax vary depending on the type of fuel and if the fuel is clear or coloured (PDF, 253KB). In some cases, the tax rates are also different depending on where you purchase the fuel and how you use it.

Imported and manufactured fuel

If you import fuel into B.C. or manufacture fuel in B.C. to sell, you must register as a collector (PDF, 240KB) and pay security. The security is equal to the motor fuel tax and carbon tax that will be collected from the end purchaser on retail sales of that fuel.

If you import fuel into B.C. or manufacture fuel in B.C. for your own use, you must pay motor fuel tax and carbon tax on the fuel you use (PDF, 186KB).

International Fuel Tax Agreement (IFTA)

If you own or operate one or more commercial motor vehicles used for transporting passengers or goods between jurisdictions, learn about the International Fuel Tax Agreement (IFTA) – a single system for collecting and distributing fuel taxes based on where the fuel is consumed, rather than where it is purchased. 

eTaxBC online services

You can manage your account, file returns and make payments online using eTaxBC.

Log on to eTaxBC

For help with eTaxBC, visit our eTaxBC help guide.

Don't have access to eTaxBC? Enrol now and learn more about eTaxBC.

Report suspected tax non-compliance

If you know or suspect a person or business isn’t complying with B.C. tax laws, you can anonymously report them using the online tip form.

Submit an online tip

You can also submit a tip over the phone 24 hours a day, 7 days a week at 1-877-977-0858

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Contact information

Contact us with your questions about the motor fuel tax or carbon tax.

Our hours of operation are Monday through Friday, 8:30 am - 4:30 pm.

Within Canada and the U.S.A Toll Free
1-877-388-4440