IFTA
International Fuel Tax Agreement — a multi-jurisdictional fuel tax reporting system that allows commercial carriers operating across member states and provinces to file a single quarterly report for fuel taxes owed based on miles driven in each jurisdiction.
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Compare ELD Compliance software →How IFTA Works: The Core Mechanism
IFTA operates on a simple principle: fuel tax revenue should flow to the jurisdictions where fuel is actually consumed (i.e., where miles are driven), not just where fuel is purchased. Without IFTA, a carrier would need to buy fuel tax permits in every state they entered. With IFTA, the carrier files a single quarterly return with their base jurisdiction. The base state then calculates how much tax is owed to each member jurisdiction and distributes the funds. If the carrier overpaid tax through fuel purchases in high-tax states, they receive a net refund. If they underpaid (e.g., by buying fuel in low-tax states), they owe the difference.
IFTA Quarterly Filing Timeline
| Quarter | Reporting Period | Filing Deadline | Late Penalty |
|---|---|---|---|
| Q1 | January – March | April 30 | $50 or 10% of net tax due (whichever is greater) |
| Q2 | April – June | July 31 | $50 or 10% of net tax due |
| Q3 | July – September | October 31 | $50 or 10% of net tax due |
| Q4 | October – December | January 31 | $50 or 10% of net tax due |
Which Vehicles Are Subject to IFTA
IFTA applies to qualified motor vehicles — defined as vehicles used in interstate commerce with two axles and a gross vehicle weight or GVWR over 26,000 lbs, or vehicles with three or more axles regardless of weight, or vehicle combinations with a combined weight over 26,000 lbs. Recreational vehicles, government vehicles, and intrastate-only operations are generally exempt. Canadian provinces (all except Yukon, Northwest Territories, and Nunavut) are IFTA members, meaning carriers crossing the U.S.-Canada border need IFTA credentials rather than separate provincial fuel tax permits.
Operational Example: IFTA Filing Calculation
Scenario
A carrier based in Texas runs a single Class 8 truck in Q2, logging 14,200 total miles: 8,400 in Texas, 3,100 in Oklahoma, 2,700 in Kansas. The truck purchased 1,820 gallons total (980 in Texas at $3.45/gallon = $3,381 paid, 840 in Oklahoma at $3.61/gallon = $3,032.40 paid). Fleet MPG: 7.80. Total gallons consumed by state: Texas = 8,400 ÷ 7.80 = 1,077 gal; Oklahoma = 3,100 ÷ 7.80 = 397 gal; Kansas = 2,700 ÷ 7.80 = 346 gal. Tax owed by state (using Q2 2025 example rates): Texas = 1,077 × $0.20 = $215.40; Oklahoma = 397 × $0.19 = $75.43; Kansas = 346 × $0.24 = $83.04. Total tax owed: $373.87. Tax already paid through fuel purchases: Texas = 980 × $0.20 = $196.00; Oklahoma = 840 × $0.19 = $159.60. Net amount due on IFTA return: $373.87 − $355.60 = $18.27 owed to base jurisdiction for distribution.
IFTA Recordkeeping Requirements
- Maintain distance records for every trip showing date, origin, destination, routes traveled, beginning and ending odometer readings, and total miles by jurisdiction
- Retain fuel receipts showing date, seller name and address, number of gallons purchased, fuel type, and price per gallon — digital receipts are acceptable if they contain all required fields
- Keep all IFTA records for 4 years from the filing due date (or filing date if late) — audits can reach back the full 4-year window
- ELD systems can generate mileage-by-jurisdiction reports automatically — verify that your ELD's IFTA report methodology is accepted by your base jurisdiction before relying on it exclusively
- Track fuel purchases in jurisdictions with separate reporting requirements — some jurisdictions require fuel tax paid on highway vs. off-highway fuel to be reported separately
IFTA FAQ
Quick answers to the questions buyers usually ask once the category, software, or rollout details start getting more specific.
A
Common audit triggers include: fuel economy ratios that appear implausible for the vehicle type (e.g., a Class 8 reporting 12 MPG), consistent net refunds with no corresponding fuel purchase documentation, mismatches between ELD mileage data and IFTA-reported mileage, and random selection by the base jurisdiction. IFTA audits are conducted by the base jurisdiction but can request records for all member jurisdictions traveled.
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Currently, EVs that run exclusively on electricity are not subject to IFTA because they consume no taxable motor fuel. However, several IFTA member jurisdictions have begun exploring electricity-based road use charges for commercial EVs, and the IFTA governing board is studying how to address the growing EV fleet. Check your base jurisdiction's current guidance as this area is evolving rapidly.