📖 Table of Contents
What is IFTA?
The International Fuel Tax Agreement is a cooperative agreement between the lower 48 U.S. states and most Canadian provinces. Instead of buying trip permits everywhere you drive, you file one quarterly return through your base jurisdiction and they distribute the tax to the states and provinces you ran.
Who Needs IFTA?
Any qualified motor vehicle that operates in two or more IFTA jurisdictions must license. "Qualified" means a vehicle that:
- Has two axles and a gross vehicle weight or registered GVW over 26,000 lbs, or
- Has three or more axles regardless of weight, or
- Is used in combination and the combination exceeds 26,000 lbs GVW
How IFTA Works
You obtain an IFTA license and decal set from your base jurisdiction. Throughout the quarter, track every mile you drive in each jurisdiction and every gallon of fuel you buy (with location and tax paid). At quarter's end you report miles and gallons per jurisdiction, pay the balance for states where you consumed more than you fueled, and receive credit where you fueled more than you ran.
Getting Your IFTA License
- Apply with your home state DOT, DMV, or revenue department (whoever handles IFTA there)
- Provide your USDOT number, business documents, vehicle VINs, and contact info
- Receive an IFTA license (keep it in the truck) plus two decals per power unit
- Place decals on both sides of the cab
Quarterly Filing Deadlines
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | Jan – Mar | April 30 |
| Q2 | Apr – Jun | July 31 |
| Q3 | Jul – Sep | October 31 |
| Q4 | Oct – Dec | January 31 |
Record Keeping Requirements
Keep the following for at least four years (paper or digital):
- Date, origin, and destination of every trip
- Route of travel plus beginning/ending odometer readings
- Total miles driven, including deadhead or empty miles
- Miles per jurisdiction
- Fuel purchase receipts showing date, gallons, type, price, vendor, and location
Common IFTA Mistakes
- Ignoring deadhead/empty miles. They count toward your jurisdiction totals.
- Mixing personal and business fuel. Keep them completely separate.
- Missing quarterly deadlines. Late = penalties + interest, even on small balances.
- Not keeping receipts. Credit card statements alone won't cut it in an audit.
- Wrong miles to wrong jurisdiction. Double-check before filing.
Tips for New Carriers
- Use an IFTA-capable ELD or fuel tax app to automate data collection
- Keep every receipt — you need date, gallons, price, location, and vendor
- File even if you owe $0 — not filing triggers penalties
- Fill up in lower-tax states when it makes sense (it adds up)
- Consider fuel tax software once you add trucks
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