Fuel tax rate
As of April 1, 2022, Albertans stopped paying the provincial fuel tax, including for the following:
- gasoline – 13 cents per litre
- diesel – 13 cents per litre
- marked gasoline and marked diesel – 4 cents per litre
Albertans will see these savings at the pump.
The government will review the collection of the fuel tax on a quarterly basis and, if required, consider reinstating collection in stages. The government will not start to reinstate collection before July 1.
View the How does the Fuel Tax Relief impact your IFTA return video to understand how these changes may affect the total amount owing on your IFTA return.
For additional information, see Fuel tax inventory declaration and Special Notice Vol. 1 No. 44 – Alberta Fuel Tax Relief (March 24, 2022).
In Alberta, fuel tax is generally reported and remitted by importers, and by refiners and large wholesalers designated as full direct remitters (FDR). Fuel tax is charged at the time fuel is imported or when fuel is removed from a refinery or terminal in Alberta.
Each recipient in the distribution chain recovers the fuel tax from the party they sell fuel to, continuing until the end consumer pays the tax. Fuel tax is included in the per-litre sale price at the pump.
See Information Circular FT-1 – Overview of Fuel Tax for more information.
Definition of fuel seller
A fuel seller includes anyone that sells or otherwise supplies fuel with or without receiving consideration (e.g., retailer, wholesaler, bulk dealer, reseller, producer, refiner, manufacturer, importer, exporter, etc.).
Fuel is subject to fuel tax when it is imported, or when it leaves a refinery or terminal, and is sold to a person other than an FDR and is not intended for delivery to a refinery or terminal. See Tax, levy and prescribed interest rates for a complete listing of all fuel tax rates.
Allowable tax-out transactions
No Alberta fuel tax is payable when:
- An FDR sells fuel to another FDR. See the list of Registered and Approved Full Direct Remitters.
- Fuel is imported for delivery to an FDR operating a terminal or refinery who will report these volumes and remit the applicable tax on their return.
- Clear gasoline, clear diesel, propane, or aviation fuel is sold to a consumer eligible to purchase fuel exempt from tax if the purchaser provides evidence of eligibility. See Information Circular FT-4 – Sale of Tax-exempt Fuel.
- Locomotive fuel is sold to a registered railway for use in a railway locomotive.
- Bunker fuel, kerosene, methanol and condensate are sold, unless the fuel is consumed for motive purposes in an internal combustion engine.
- Fuel sold is for direct export from Alberta in bulk. See Information Circular FT-11: Direct Remitter for more information.
- Renewable fuel is sold to a renewable fuel producer.
- Fuel is sold to an eligible consumer on reserve in Alberta. See Alberta Indian Tax Exemption (AITE) for more information about how to register to sell tax-exempt fuel on reserve in Alberta.
- Foreign commercial carriers on international flights originating in Alberta are exempt from the fuel tax at the time of purchase.
Partial exemption on marked fuel
Marked gasoline and marked diesel are taxed at a lower rate than clear fuel when sold to another fuel seller or eligible consumers. FDRs may also sell marked fuel to another FDR exempt from fuel tax.
For more information regarding the partial exemption from fuel tax, see:
- Fuel tax – Marked fuel
- Information Circular FT-4 – Sale of Tax-Exempt Fuel
- Information Circular FT-3 – Fuel Tax Exemption Certificates
When to register
In Alberta, an entity must register to:
- produce or refine fuel including renewable fuel (excluding kerosene, methanol, bunker fuel or condensate)
- operate a terminal or act as a position holder within a terminal operated by another person
- sell fuel, or remove their own fuel, from a refinery or terminal
- import fuel into Alberta for resale
- import fuel in bulk as a consumer
- sell aviation fuel
- sell fuel exempt from tax including marked fuel
- mark fuel (see Fuel tax – Marked fuel for more information)
- rebrand fuel including:
- reclassify a type of fuel
- change a fuel to another type of fuel or to a non-taxable product
- change a non-taxable product that was originally a fuel back to a taxable fuel
- export fuel from Alberta in bulk
- sell kerosene, bunker fuel, methanol or condensate in bulk
- use locomotive fuel in Alberta
- sell fuel dye for use in Alberta
- produce or distribute propane (see Fuel tax – Propane for more information)
- apply for a refund or rebate of fuel tax
- sell propane to motive consumers in Alberta (see Fuel tax – Propane for more information)
Eligibility for a fuel tax rebate or refund
A fuel seller may apply for a refund of fuel tax when:
- a verifiable quantity of fuel was stolen or destroyed
- the fuel could not be sold due to contamination
- the fuel seller sold the fuel on credit to another fuel seller and all or a portion of the debt for the sale is a bad debt
- the fuel is rebranded to a fuel with a lower fuel tax rate
- fuel is exported from Alberta in bulk
For more information, see:
- Information Circular FT-4 – Sale of Tax-Exempt Fuel
- Information Circular FT-6 – Tax Refunds
- Information Circular TEFU-1 – Tax Exempt Fuel User (TEFU) Rebates
How to register
Both remitters and claimants are required to complete the online Fuel Tax Registration. See When to register to determine if a registration is required.
For detailed step-by-step instructions, see:
- Video: How to complete the Fuel Tax registration – February 2022
- Instruction Guide: Fuel Tax Registration (PDF, 896 KB) – November 2021
Step 1. Create or log in to your MyAlberta Digital ID account
- Create a basic account or log in to MyAlberta.
Step 2: Sign in and select Online Registration
- After you create a MyAlberta Digital ID account, login to TRACS. You will need to sign in using your MyAlberta Digital Identity user name and password. Once you log in, you will be redirected to TRACS.
- Select 'Online Registration'.
- Select 'Fuel Tax' from the Program Name menu.
Step 3. Complete and submit the online registration form
After you submit your registration, you will receive a pending status notification and a reference number. TRA may need to contact you for further information.
Step 4: Once approved
You will be notified by email that your approval letter or exemption certificate is available in your TRACS account.
How to file
The Alberta fuel tax return must be received by TRA on or before the 28th day of the month following the period end. A return must be filed for each calendar month, whether or not activity occurred.
A claim for a refund of fuel tax paid must be received by TRA not later than 3 years from the end of the year in which the fuel purchased occurred. The claim is filed monthly as needed.
Step 1: Complete the return/claim in TRACS
- Log in to your TRA Client Self-Service (TRACS) account and select 'File a Return/Claim'.
- Returns/claims can be filed online by either web form (data-entry); or XML file upload.
- For more information about filing using the XML file upload process, see XML Upload Requirements for Submitting Fuel Tax Returns and Claims.
Step 2: Submit your return/claim
- Submit the return/claim in TRACS and print or save the confirmation page for your records.
- You will be charged a penalty if you file your return late.
Step 3: Remit the amount owing or receive your refund
- Remit the amount owing – see Making payments.
- Interest will be charged on late remittances and will accrue until the balance is paid in full.
- For claims, you will receive your refund by direct deposit – see Set up direct deposit.
- If there were changes made to your return or a balance is owing, a notice of assessment will be available in your TRACS account under View Assessment Status.
As of April 1, 2022, Albertans stopped paying the provincial fuel tax. The government will review the collection of the fuel tax on a quarterly basis and, if required, consider reinstating collection in stages.
For more information, refer to Special Notice Vol. 1 No. 44 – Alberta Fuel Tax Relief (March 23, 2022).
Fuel sellers who hold inventories of gasoline or diesel fuel that was purchased tax included, may apply for a refund of $0.13 per litre of clear fuel and $0.04 per litre of marked fuel by completing and submitting a Fuel Tax Online Inventory Declaration.
Claimants must maintain records supporting the amounts reported on their inventory declaration.
TRA must receive the April 1, 2022, inventory declaration on or before March 31, 2023, one year from the date of the tax rate change.
Step 1: Complete your inventory declaration
- Fuel Tax Online Inventory Declaration form
- See the instruction guide for assistance completing the form.
- The physical count should have been taken after closing March 31 or before opening April 1.
Step 2: Receive your refund
- Once approved, you will receive your refund by cheque.
How to pay
Set up direct deposit
- Log in to your TRACS account.
- Select 'Manage Direct Deposit'.
- Enter your banking and contact information.
- Click 'Submit'.
- For an instructional video, see TRACS videos.
Maintain your account in TRACS
TRACS is a secure online system for authorized Tax and Revenue Administration (TRA) clients to conveniently conduct business with TRA. You can do the following tasks in TRACS:
- file a return/claim
- submit documents
- file a Notice of Objection
- manage direct deposit
- view reports
- confirm receipt and completion of submitted returns/claims
- view status of prior assessments, financial details and notices of assessment
- access financial information and view account period balances
- update address and contact information
- delegate account access to other employees or authorized individuals
For more details, instructional videos and to log in to your TRACS account, see TRACS information.
How to authorize a representative
An individual with proper authorization for the business may consent to the release of confidential information about account(s) with TRA to a specific firm and/or individual.
An individual with proper authorization for the business includes a(n):
- partner of a partnership
- corporate director
- trustee of an estate
- individual with delegated authority
Step 1: Fill out the Alberta Consent Form
- Complete the Alberta Consent Form (AT4931) (PDF, 328 KB).
- See tip sheet: Representatives – How to Access TRACS (PDF, 66 KB)
Step 2: Submit the consent form
- Submit your completed consent form to TRA.
Step 3: Representative receives PIN (only for TRACS access)
- TRA will review the consent form to ensure it is complete.
- TRA will issue a PIN number to the individual via secure email. TRACS access can only be provided to an individual.
The representative must enter the PIN and account number to access the TRACS account. See How to access TRACS for instructions.
Publications and forms
These documents discuss procedural matters and administrative policies and practices for programs administered by TRA. They are updated as necessary and a revision number is assigned.
- TRA-1R2 – Introduction to Tax and Revenue Administration – December 2021
- TRA-2 – TRA Fairness and Service Pledge – July 2018
- TRA-3 – Alberta Commodity Tax Acts – Voluntary Disclosures – November 2018
- FT-1R1 – Overview of Fuel Tax – February 2017
- FT-3R2 – Fuel Tax Exemption Certificates – February 2017
- FT-4R2 – Sale of Tax-exempt Fuel – December 2020
- FT-6R1 – Tax Refunds – February 2017
- FT-7R1 – Assessments – February 2017
- FT-8R1 – Collections – December 2020
- FT-9R1 – Audits, Objections, and Waivers of Penalties and Interest – December 2020
- FT-10R2 – Offences and Related Penalties – December 2020
- FT-11R2 – Direct Remitters – August 2019
- FT-12R3 – Fuel Sellers – February 2019
- FT-13R1 – Exempt Sale Vendors – February 2017
- See the Open Government Portal for the complete set of Fuel Tax information circulars.
- Vol. 1 No. 44 – Alberta Fuel Tax Relief – March 2022
- Vol. 1 No. 42 – Tax Exempt Fuel User (TEFU) Certificates – February 2020
- Vol. 1 No. 40 – Tax Exempt Fuel User (TEFU) Numbers – Change to the Expiry Date of Member Numbers – March 2018
- Vol. 1 No. 32 – Fuel Tax Amendment Regulation – Taxation of Renewable Fuels – March 2011
- Vol. 1 No. 23 – Marked Fuel Acquired or Supplied – August 2007
- See the Open Government Portal for the complete set of Fuel Tax special notices.
Submitting a claim or return using TRACS and XML file upload
PDF form issues
Fillable PDF forms do not open properly on some mobile devices and web browsers. To fill in and save the form:
- Save the PDF form to your computer – click or right-click the link and download the form.
- Open the PDF form with Adobe Reader. Fill it in and save it.
- AT4764 – Request for a Waiver of Penalties and Interest (PDF, 854 KB) – October 2021
- AT4931 – Alberta Consent Form (PDF, 328 KB) – November 2020
- See tip sheet: Representatives – How to Access TRACS (PDF, 66 KB) – December 2020
- How to complete the Fuel Tax registration – February 2022
- Tax Exempt Fuel User (TEFU) - Non-expiring Certificates – February 2020
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Complete your forms and email or fax them to:
Email: [email protected]
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