Texas Fuel Tax Refund Estimator

Why most Texas diesel refund claims fail

Texas charges $0.20 in state tax on every gallon of diesel sold in the state, so it is easy to see why owners and operators ask whether tax paid on fuel that never propelled a truck down a public highway can be claimed back. For many years the answer for a licensed truck was, in limited circumstances, yes. That changed on 1 January 2005, when Texas ended the general off-highway diesel refund. Since then, fuel burned in a licensed vehicle on public highways — including miles on a jobsite or a lease road reached by a licensed truck — has not been refundable, however far off the paved highway some of those miles were. The myth survives because the old rule is still quoted in truck stops, forums and outdated guides, and because other states still allow broader off-highway claims. In Texas it no longer exists, and a claim built on it will be denied. That is why the estimator above screens eligibility first: if the use does not qualify, no amount of arithmetic can make it refundable.

The uses that can still qualify

A small number of specific uses survived the 2005 change, and they are the only diesel uses this tool treats as potentially eligible. Each one has its own conditions, and the Comptroller expects you to be able to prove the use, the gallons and the tax paid.

• Power take-off (PTO) and auxiliary power unit (APU) use on a motor vehicle — eligible from 1 September 2025, using the fixed-rate method: 5% of the fuel used, or 30% for ready-mix concrete and solid-waste vehicles.
• Diesel used as a feedstock in manufacturing, where the fuel becomes part of the manufacturing process rather than powering a vehicle.
• Diesel used as a medium to remove drill cuttings in oilfield work.
• Diesel burned in moveable oil-well-servicing equipment.

Genuinely off-road equipment — a generator, tractor, loader or stationary engine that never runs on a public highway — belongs in a different column. The correct route there is usually dyed diesel, which is sold without the state tax already applied. Because no tax was paid on dyed diesel, there is nothing to refund on it, and putting tax-paid clear diesel in off-road equipment does not turn it into a refund claim. Buy the right fuel for the equipment in the first place, keep the purchase records separate, and do not mix dyed and clear diesel in the same tank or the same log.

IFTA carriers: take the credit on your IFTA return

If you are an IFTA-licensed interstate carrier, the refund route is different again. Fuel tax for highway use is settled through your quarterly IFTA returns, and any credit due for fuel taxed in Texas is taken there — not on Form 06-106. Filing Form 06-106 for fuel burned in a licensed truck on public highways will not produce a refund, and it can delay the credit you are actually owed. Work out your IFTA position first with our IFTA Fuel Tax Estimator, which estimates what you owe or are owed by jurisdiction, then file your IFTA return in the normal way. Only the non-IFTA, non-highway uses listed above belong on a Form 06-106 claim.

Form 06-106, the one-year deadline and your records

Eligible claims are made on Texas Comptroller Form 06-106 (Rev. 8-25/25), the Texas motor fuel tax refund claim, sent to the Comptroller — claims can be emailed to Fuels.Refunds@cpa.texas.gov. The deadline is strict: the claim must be postmarked within one year of the date the fuel was purchased, so a claim that is a week late is a claim that fails, whatever the gallons involved. Keep every purchase invoice showing Texas tax paid, together with a fuel distribution log that records how much fuel went to each eligible use, and keep those records for four years under Comptroller Rule 3.432. A refund, where one is due, is paid on the eligible gallons less a 2% gallonage deduction, so the estimator’s figure is a starting point and the Comptroller’s calculation is the final word. Check the current form and instructions on the Texas Comptroller’s motor fuel refunds page before you file, because forms and instructions are revised from time to time.

How to use the estimator above

Answer the three screening questions honestly, then enter the total gallons of tax-paid diesel purchased, the percentage burned in the eligible use, and the tax rate — $0.20 a gallon is already filled in for Texas. The tool shows whether the use looks eligible, ineligible or in need of a different route, and estimates the refund on the eligible share. Where a use is ineligible, any figure shown is labelled as a theoretical maximum only, so you can see what the claim would have been worth without mistaking it for money the state owes you. If the screener says a use is ineligible, do not re-answer the questions until you get a different result — fix the fuel, the records or the route instead. You can browse the rest of the Trucking Tools hub for the other free calculators on this site.

Frequently asked questions

Can I claim a refund for diesel my truck burns off-highway?

No — not for a licensed truck. Texas ended the general off-highway diesel refund on 1 January 2005. Fuel burned in a licensed vehicle on public highways, including jobsite and lease-road miles, is not refundable on Form 06-106. The surviving exceptions are narrow — PTO and APU use from 1 September 2025, feedstock, drill-cuttings removal and oil-well-servicing equipment — and IFTA carriers take any credit on their IFTA returns instead.

What changed for PTO and APU fuel in 2025?

From 1 September 2025, diesel burned in a power take-off or auxiliary power unit on a motor vehicle became eligible for a refund under the fixed-rate method: 5% of the fuel used, or 30% for ready-mix concrete and solid-waste vehicles. You still need invoices showing Texas tax paid and a distribution log, and the claim must be filed on Form 06-106 within one year of purchase.

I am IFTA-licensed — do I file Form 06-106?

No, not for highway fuel. IFTA-licensed interstate carriers settle fuel tax through their quarterly IFTA returns, and any Texas credit is taken there. Form 06-106 is for the specific non-highway, non-IFTA uses described above. If you are unsure where a credit belongs, work out your IFTA position first and do not file both routes for the same gallons.

What records must I keep and what is the deadline?

Keep purchase invoices showing Texas tax paid and a fuel distribution log for four years under Rule 3.432, and file Form 06-106 so it is postmarked within one year of the fuel purchase date. Refunds are paid on eligible gallons less a 2% gallonage deduction. No records means no refund, however eligible the use.