Firearms and Ammunition Taxes and Tax Exemptions

The tax rates are 10% of the sale price of pistols and revolvers; 11% of the sale price of firearms other than pistols and revolvers, shells and cartridges. See 26 USC Section 4181(a); 27 CFR Section 53.61(a).

There are factors to determine the existence of FAET liability which include:

  • Occurrence of act of manufacture or importation.
  • Identification of manufacturer or importer who performed such act.
  • Taxable article was manufactured or imported.
  • Taxable article sold or put to a taxable use.

See all tax rates.

Key Topics

  • Determine Your Liability for Excise Taxes [insert anchor tag to topic heading below]
  • Requirements for Tax Exemption/Tax-Free Sales [insert anchor tag to topic heading below]
  • Firearms Excise Tax Improvement Act of 2010 [insert anchor tag to topic heading below]

Determine Your Liability for Excise Taxes

Which are you?

Requirements for Tax-Exemption/Tax Free Sales

If you want to sell an article tax-free, you must have a tax-free registration number. To obtain a tax-free registration number, you must file an Application for Registration for Tax-Free Transactions TTB F 5300.28.
Tax-free informational documents

TTB I 5600.34

Exemption Certificate

support tax-free sales of articles for use as fuel supplies, ships' stores, or legitimate equipment on certain vessels or aircraft (this form must be used by the purchaser)

TTB I 5600.35

Exemption Certificate

support tax-free sales to State and local governments (this form must be used by the State or local government purchasing the article)

TTB I 5600.36

Statement of Manufacturer's Vendee

support tax-free sales of taxable articles:
- to a purchaser for export, or
- for resale to a second purchaser for export

TTB I 5600.37

Statement of Manufacturer's Vendee

Support tax-free sales of taxable articles to a purchaser for resale to a second purchaser for the second purchaser to use in further manufacture

Firearms Excise Tax Improvement Act of 2010

The Firearms Excise Tax Improvement Act of 2010 was signed into law on August 16, 2010. This law amends the Internal Revenue Code of 1986 so that firearms and ammunition excise tax (FAET) payments that were otherwise required to be made by semimonthly deposit will be due and payable on the date of filing of the quarterly FAET tax returns. TTB is currently developing guidance to implement the changes made by the new law. We will continue to provide information as it becomes available.

Please note the pertinent language from the law below:

This Act may be cited as the `Firearms Excise Tax Improvement Act of 2010'.

SEC. 2. TIME FOR PAYMENT OF MANUFACTURERS' EXCISE TAX ON RECREATIONAL EQUIPMENT.
(a) In General- Subsection (d) of section 6302 of the Internal Revenue Code of 1986 (relating to mode or time of collection) is amended to read as follows:

`(d) Time for Payment of Manufacturers' Excise Tax on Recreational Equipment - The taxes imposed by subchapter D of chapter 32 of this title (relating to taxes on recreational equipment) shall be due and payable on the date for filing the return for such taxes.'.

(b) Effective Date- The amendment made by subsection (a) shall apply to articles sold by the manufacturer, producer, or importer after the date of the enactment of this Act.

Description: http://icons.iconarchive.com/icons/judge/iphone/128/phone-icon.png CONTACT US

Questions?  If you have questions regarding permits, applications, bonds, tax payments, etc., you may contact the National Revenue Center (NRC) using the  NRC Contact Us form or at 877-882-3277 (Toll Free). If you're having technical issues with our online applications contact the TTB Help Desk or see our TTB Online Help Center.


Page last reviewed: September 29, 2017
Page last updated: September 29, 2017
Maintained by: Regulations and Rulings Division