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U.S. Department of the Interior Natural Resources Revenue Data wordmark with oil platform rig pulling up a dollar sign

How it works /

Coal Excise Tax

In the United States, one of the taxes coal producers must pay is a federal excise tax when they mine coal. Producers pay the tax when the coal is first sold or used. The tax does not apply to lignite or to coal mined in the U.S. for export. Learn more about how coal revenues work.

This tax originated in 1977 with the Black Lung Revenue Act. The excise tax is the chief source of revenue for the Black Lung Program and Black Lung Disability Trust Fund (BLDTF), which pays benefits to miners disabled by black lung disease, as well as their eligible survivors and dependents.

Coal Excise Tax payments are collected by the Internal Revenue Service and transferred to the BLDTF. Amounts in the BLDTF are available, as provided in appropriation acts, for benefit payments that are administered by the Department of Labor’s Division of Coal Mine Workers’ Compensation.

Coal Excise Tax revenue

Year Surface mining Subsurface mining Total
2008 $326,258,000 $318,332,000 $644,590,000
2009 $324,093,000 $307,045,000 $631,138,000
2010 $309,170,000 $300,898,000 $610,068,000
2011 $324,756,000 $298,922,000 $623,678,000
2012 $307,383,000 $281,232,000 $588,615,000
2013 $280,477,000 $290,189,000 $570,661,000
2014 $277,469,000 $296,936,000 $574,405,000
2015 $270,390,000 $270,561,000 $540,951,000
2016 $208,428,000 $226,515,000 $434,943,000
2017 $207,631,000 $224,094,000 $431,725,000
2018 $190,356,000 $191,773,000 $382,129,000

This data is from federal excise taxes reported to or collected by the Internal Revenue Service, Alcohol and Tobacco Tax and Trade Bureau, and the U.S. Customs Service. For more information, see excise tax statistics.

Rates

As of January 1, 2020, the tax rate changed back to $1.10 per ton for coal from subsurface mines and $0.55 per ton for coal from surface mines. Both rates are limited to a maximum of 4.4% of the coal’s selling price. In 2019, the tax rate was $0.50 per ton for coal from subsurface mines and $0.25 per ton for coal from surface mines. Both rates were limited to 2% of the coal's selling price.

Type of mining Excise tax rates
Surface mining $0.55 per ton or 4.4% of the sales price
(whichever is lower)
Subsurface mining $1.10 per ton or 4.4% of the sales price
(whichever is lower)