What is IFTA (International Fuel Tax Agreement)?
A carrier licensed under IFTA reports total miles and fuel purchased for the quarter, plus the miles driven in each member jurisdiction. Fuel tax is owed where the miles are driven, not where the fuel is bought, so the return nets what the carrier owes against tax already paid at the pump. Qualified vehicles include those with two axles and a gross weight over 26,000 pounds, vehicles with three or more axles, and combinations over 26,000 pounds. Returns are due on the last day of the month after each quarter. Alaska and Hawaii do not take part. GPS trip history gives the miles by jurisdiction that the return needs, so you do not rebuild them from fuel receipts.
How it works
- Get an IFTA license from your base jurisdiction.
- Record the miles driven in each jurisdiction and the fuel bought.
- Total the quarter's miles and gallons.
- Work out the tax owed per jurisdiction against the tax paid at the pump.
- File the return and pay or claim the difference by the quarterly deadline.
Key facts
- One quarterly return replaces filing in every state
- Miles by jurisdiction can come from GPS trip history instead of manual logs
- Accurate miles help avoid penalties and interest on wrong or late returns
- Fuel tax follows the miles driven, not where the fuel was bought
