Article
Missouri fuel tax refund: A strategic opportunity for businesses and individuals
July 15, 2025 · Authored by Bob Johnson
Missouri offers a fuel tax refund program that allows eligible individuals and businesses to recover a portion of state fuel tax paid on gasoline used for non-highway purposes — or, more recently, for any purpose considering increases enacted through the 2021 gas tax legislation.
With significant fuel tax increases taking effect annually through 2026, the Missouri refund process presents a growing opportunity for taxpayers to recover a portion of fuel costs through proper documentation and timely filing.
Background: 2021 gas tax legislation (SB 262)
In 2021, Missouri enacted Senate Bill (SB) 262, which incrementally increased the state fuel tax from 17¢ per gallon to 29.5¢ per gallon by July 1, 2025. The legislation includes a refund mechanism for fuel purchased and used by Missouri residents for on-road purposes, such as personal vehicles.
This provision was designed to soften the financial impact of the tax increase by allowing taxpayers to reclaim the increased portion of the tax — provided they maintain proper documentation and submit refund claims on time.
Tax increase schedule
The fuel tax increased in five annual steps:
- Oct. 1, 2021–June 30, 2022: +2.5¢ (total 19.5¢ per gallon)
- July 1, 2022–June 30, 2023: +2.0¢ (total 21.5¢ per gallon)
- July 1, 2023–June 30, 2024: +2.0¢ (total 23.5¢ per gallon)
- July 1, 2024–June 30, 2025: +2.0¢ (total 25.5¢ per gallon)
- July 1, 2025–June 30, 2026: +2.0¢ (final rate 27.5¢ per gallon)
Note: There is also an additional two¢ surcharge to support transportation funding, resulting in a total of 29.5¢ per gallon by fiscal year (FY) 2026.
Who can claim the refund?
Refund eligibility depends on how the fuel is used.
General consumers and residents
Missouri residents who purchase fuel for on-road personal vehicle use may request a refund of the increased portion only, meaning the incremental tax above 17¢. The refund is available only if:
- The fuel was purchased in Missouri
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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.
