Carbon Tax

A carbon tax is levied on the carbon content of fossil fuels. The term can also refer to taxing other types of greenhouse gas emissions, such as methane. A carbon tax puts a price on those emissions to encourage consumers, businesses, and governments to produce less of them. Explore the latest carbon tax research and analysis from the Tax Foundation.


Featured Research

Options for Reforming America’s Tax Code 2.0

April 19, 2021

Excise Tax Application and Trends

March 16, 2021

Carbon Taxes in Europe

October 8, 2020

A Carbon Tax to Make the TCJA’s Individual Provisions Permanent

September 30, 2020

Countries Eye Environmental Taxation

September 29, 2020

Looking Back on 30 Years of Carbon Taxes in Sweden

September 23, 2020


Related Articles

Permanent Build Back Better Act Would Likely Require Large Tax Increases on the Middle Class

December 15, 2021

Norway’s New Budget Adds Unnecessary Complexity

November 16, 2021

Austria’s Budget Comes with Tax Cuts and Carbon Levies

November 2, 2021

Carbon Tax: Weighing the Options for Financing Reconciliation

September 29, 2021

Carbon Taxes in Europe

June 3, 2021

Reviewing Options to Raise Tax Revenue and the Trade-offs for Economic Growth and Progressivity

May 3, 2021

Comparing the Trade-offs of Carbon Taxes and Corporate Income Taxes

April 23, 2021

Options for Reforming America’s Tax Code 2.0

April 19, 2021

Excise Tax Application and Trends

March 16, 2021

Wyden’s Energy Tax Proposal a Mixed Bag

March 11, 2021

Using Carbon Tax Revenue to Grow the Economy

January 22, 2021

Carbon Taxes in Europe

October 8, 2020

A Carbon Tax to Make the TCJA’s Individual Provisions Permanent

September 30, 2020

Countries Eye Environmental Taxation

September 29, 2020

Looking Back on 30 Years of Carbon Taxes in Sweden

September 23, 2020

New Research on the Impact of Energy Taxes and the EU’s Cap-and-Trade System

August 19, 2020

Lessons from Alberto Alesina for U.S. Lawmakers

May 26, 2020

Austria’s New Government Revamps Tax Plans

January 8, 2020

Carbon Taxes in Europe

November 14, 2019

Carbon Tax and Revenue Recycling: Revenue, Economic, and Distributional Implications

November 6, 2019