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
- Requirements for Tax Exemption/Tax-Free Sales
- Firearms Excise Tax Improvement Act of 2010
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.