IFTA

What IFTA Is

IFTA stands for the International Fuel Tax Agreement.

It’s an agreement between:

• All 48 contiguous U.S. states
• Canadian provinces

Its purpose is to simplify fuel tax reporting for commercial vehicles that operate in more than one jurisdiction.

Instead of filing fuel tax reports with every state or province you drive through, you:

• File one quarterly fuel tax report
• With one base jurisdiction

That base jurisdiction then distributes the fuel tax to the others.

Who Needs IFTA?

You generally need IFTA if your vehicle:

• Is used for commercial purposes
• Travels in two or more jurisdictions
• Meets at least one of these:
  • Has a GVW over 26,000 lbs
  • Has 3 or more axles (regardless of weight)
  • Is part of a combination exceeding 26,000 lbs

Sound familiar? That’s because IFTA and IRP usually apply to the same vehicles.

What IFTA Covers (and What It Doesn’t)

Covered by IFTA:

• Fuel use taxes
• Diesel, gasoline, propane, natural gas, etc.
• Miles driven in each jurisdiction

Not covered by IFTA:

• Toll roads
• Registration fees
• Sales tax on fuel
• Weight-distance taxes (like KY, NM, NY, OR)

How IFTA Works (Step by Step)

1. Get an IFTA License

You apply in your base jurisdiction (usually your home state).

You receive:

• One IFTA license
• Two IFTA decals (stickers for the truck)

2. Track Miles and Fuel

You must track:

• Miles driven in each state/province
• Fuel purchased in each state/province

This is the backbone of IFTA.

3. File Quarterly IFTA Reports

You file 4 times per year:

• Q1: Jan–Mar
• Q2: Apr–Jun
• Q3: Jul–Sep
• Q4: Oct–Dec

In the report, you calculate:

• Total miles
• Total fuel used
• MPG
• Fuel tax owed or refunded per jurisdiction