What is IFTA tax?
IFTA (International Fuel Tax Agreement) adopted in 1996, is a cooperative agreement among the US states and Canadian provinces. Instead of paying tax in the states where the fuel is bought, IFTA helps pay tax where the fuel is used. IFTA’s main objective is to provide a fair distribution of fuel taxes for the states by carriers.
Who this is for?
Both private and hire carriers having Qualified Motor Vehicle (QMV) in two or more member jurisdictions are subject to IFTA reporting. A vehicle is said to be a qualified motor vehicle if it has any one of the following properties:
- Possesses three or more axles regardless of its weight
- Possesses two axles and a gross vehicle weight which exceeds 26,000 pounds
- Where the vehicle is used in combination with the total weight exceeding 26,000 pounds
Both private and hire carriers having Qualified Motor Vehicle (QMV) in two or more member jurisdictions are subject to IFTA reporting. A vehicle is said to be a qualified motor vehicle if it has any one of the following properties:
IFTA license
IFTA license is to be compulsorily obtained by all the Qualified Motor Vehicles from their base jurisdiction. The details required for obtaining an IFTA license may vary from state to state. However these are the common needs:
- USDOT number
- Registered business address
- Mailing address
- Federal business number
Application for obtaining an IFTA license can be made online. The IFTA authority, after scrutinizing the application, will issue the license along with two decals for the current year. Decals are like stickers indicating your registration with IFTA and it should be placed on either side of the vehicle. These decals are valid for one year ending 31st Dec, and you should obtain decals for the current year within March 1st.
Calculating IFTA Tax
Calculating the IFTA taxes is a tedious job. It requires a lot of calculations, and is very time consuming. It is advisable to avoid manual processes because a minor error will drastically affect the whole tax liability.
The IFTA tax calculation involves two main components:
- Miles traveled: Miles traveled is the total number of miles the vehicle traveled in the IFTA territory
- Fuel purchased: Fuel purchased is the amount of fuel the vehicle purchased for the miles traveled.
Due date for filing IFTA report
IFTA reports must be compulsorily filed at the end of each quarter. The due dates for the year 2023 are:
| Quarter | Period | Due Date |
|---|---|---|
| 1st Quarter | January - March 2023 | May 1, 2023 |
| 2nd Quarter | April - June 2023 | July 31, 2023 |
| 3rd Quarter | July - September 2023 | October 31, 2023 |
| 4th Quarter | October - December 2023 | January 31, 2024 |
After each quarter, you’ve got one month to prepare the IFTA report. If the due date falls on a weekend/ holiday, the next business day will be the due date. Due date for the first quarter of 2023 should have been April 30. Since it’s Sunday, May 1, 2023 is the official due date. Late filing of the reports are subject to a penalty of 50 dollars or 10 percent of the net tax liability along with the interest.
Note: This varies based on your base jurisdiction
Details required for IFTA reporting
The following are the mandatory details required for generating IFTA reports. Note that this detail varies for different jurisdictions. However these are the base details required
| IFTA Details | Business Details | Vehicle Details | Distance Details | Fuel Details |
|---|---|---|---|---|
| IFTA account number | Company name | Fleet number | Total miles traveled | Fuel type |
| Country | Business type | Truck number | Fuel consumed | |
| Base jurisdiction | Business address | Gross vehicle type | Total gallons/liters purchased | |
| 4th Quarter | October - December 2023 | Make and model |
Mode of filing IFTA report
IFTA report is submitted to the base jurisdiction where the carrier is registered. Various other documents like fuel receipts, distance records, purchase receipts are also to be filed along with the report. The report can be filed in two ways
- Online or
Benefits of IFTA
Simplified Reporting
Prior to IFTA, motor carriers had to navigate a complex process of obtaining fuel permits, maintaining records for multiple jurisdictions, and managing varying tax rates. IFTA streamlines these processes, allowing carriers to report their taxes uniformly.
Cost Savings
The reduction in paperwork and administrative tasks have led to cost savings for carriers
Cross-Border Operations
With the aim of promoting smoother logistics and trade operations, IFTA simplified the tax reporting for international boundaries.
IFTA Requirements
Every Qualified Motor Carrier must register themselves with their base jurisdiction and obtain an IFTA license. Each jurisdiction may have different IFTA requirements. The requirements for each US and Canada state/province are represented below.
Disclaimer: The information provided below may sometimes go wrong. Please cross verify with the official website before starting your registration process.
USA State wise IFTA Details
| State | Official page | License fee | Decals fee | Decals time taken | Penalties |
|---|---|---|---|---|---|
| Alabama | Department of Revenue | $17 per set of decals | Mail: 30 days In person: same day | $50 or 10% of the net tax liability, whichever is greater | |
| Arizona | MVD | $10 application fee, regardless of the number of decals | Mail: 5 - 10 business days | $50 or 10% of the net tax liability, whichever is greater | |
| Arkansas | Motor Fuel Tax Section | No fee | No fee | In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| California | CDTFA | $10 | $2 | Mail: 5 - 10 business days | $50 or 10% of the net tax liability, whichever is greater |
| Colorado | Department of Revenue | No fee | No fee | Mail: 5-7 business days In person: Same day | $50 or 10% of the net tax liability, whichever is greater |
| Connecticut | DRS | $10 per set of decals | Online: 2-3 days Mail: 7-10 business days | $50 or 10% of the net tax liability, whichever is greater | |
| Delaware | Motor Carrier Services | $5 fee per set of decals | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater | |
| Florida | FLHSMV | No fee | $4 fee | Mail: 7-14 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Georgia | Georgia Department of Revenue | $3 fee per set of decals | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater | |
| Idaho | Idaho State Tax Commission | $10 | $0.60 | In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Illinois | Department of Revenue | No fee | $3.75 | Mail: A week In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Indiana | Department of revenue | $25 | No fee | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Lowa | Department of Transportation | $10 | $0.50 | Mail: A week In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Kansas | Department of Revenue | $10 for first qualified motor and $1 for each additional vehicle | No fee | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Kentucky | Division of Motor Carriers | No fee | No fee | Mail: 10-15 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Louisiana | Department of revenue | $35 | $2 | Mail: 7-10 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Maine | Motor Carrier Services | No fee | $5 fee | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Maryland | Comptroller of Maryland | No fee | No fee | Mail: 5-7 business days | $50 or 10% of the net tax liability, whichever is greater |
| Massachusetts | Department of Revenue | $8 fee per set of decals | Mail: within 3 weeks | $50 or 10% of the net tax liability, whichever is greater | |
| Michigan | Michigan Government | No fee | No fee | Within 30 days | $50 or 10% of the net tax liability, whichever is greater |
| Minnesota | Driver and vehicle services | $28 | $2.50 | Mai: 1-2 weeks In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Mississippi | Department of revenue | No fee | No fee | In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Missouri | Department of Transportation | No fee | No fee | In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Montana | Department of transportation | $2 per set of decals | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater | |
| Nebraska | Department of motor vehicles | $10 for the first qualified vehicle, and additional $1 for each additional qualified vehicle | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater | |
| Nevada | Department of motor vehicles | No fee for application/ license but $6 decal fee | Mail: 10 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater | |
| New Hampshire | Department of Safety | $10 per set of decals | Mail: 5 - 10 business days | $50 or 10% of the net tax liability, whichever is greater | |
| New Jersey | Motor Vehicle Commission | $10 per set of decals | Mail: 1-2 weeks In person: same day | $50 or 10% of the net tax liability, whichever is greater | |
| New Mexico | Motor Vehicle Commission | $3.50 per set of decals | Mail: 1-2 weeks In person: same day | $50 or 10% of the net tax liability, whichever is greater | |
| New York | Department of Taxation and Finance | No fee | $8 | Mail: 14-21 days | $50 or 10% of the net tax liability, whichever is greater |
| North Carolina | Department of Revenue | No fee | No fee | Mail: 4-5 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| North Dakota | Department of Transportation | $20 | $5 cab card fee + $1 per for decals | Mail: 6-8 weeks In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Ohio | Department of Taxation | No fee | No fee | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Oklahoma | Corporation Commission | No fee | $2 | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Oregon | Department of transportation | The fees depends on the number of vehicles and starts at $280 for 1 vehicle | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater | |
| Pennsylvania | Department of Revenue | $5 per set of decals | Mail: 3 weeks In person: same day | $50 or 10% of the net tax liability, whichever is greater | |
| Rhode Island | Division of Taxation | $10 | $10 | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| South Carolina | Department of Motor Vehicles | No fee | No fee | In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| South Dakota | Motor Fuel Tax Section | $10 | $2.50 | In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Tennessee | Department of Revenue | No fee | No fee | Mail: 1-2 weeks In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Texas | Comptroller | No fee | No fee | Mail: 3-4 weeks | $50 or 10% of the net tax liability, whichever is greater |
| Utah | Motor Carrier Section | No fee | $4 | Mail: 2 weeks In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Vermont | Department of Motor Vehicles | No fee | No fee | Mail: 3-4 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Virginia | Department of Motor Vehicles | $10 per set of decals | Mail: 3-5 business days | $50 or 10% of the net tax liability, whichever is greater | |
| Washington | Department of Licensing | No fee | $10 | Mail: 2 weeks In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| West Virginia | West virginia tax division | No fee | $5 | Mail: 3-5 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
| Wisconsin | Department of Transportation | $15 application fee and a $3 license fee | $2 | Mail: 3-5 business days | $50 or 10% of the net tax liability, whichever is greater |
| Wyoming | Department of transportation | $10 | $3 | Mail: 5-7 business days In person: same day | $50 or 10% of the net tax liability, whichever is greater |
Non-IFTA US States
- Alaska
- District of Columbia
- Hawaii
| State | Official page | License fee | Decals fee | Penalties |
|---|---|---|---|---|
| Alberta | Government of Alberta | $15 | $10 per set of decals | $50 or 10% of the net tax liability, whichever is greater |
| British Columbia | Government of British Columbia | $200 registration fee plus $100 annual license fee | $50 or 10% of the net tax liability, whichever is greater | |
| Manitoba | Province of Manitoba | $65 | $5 per set of decals | $50 or 10% of the net tax liability, whichever is greater |
| New Brunswick | Finance and Treasury Board | Defers based on the number of vehicles starting at $25 | $25 per set of decals | $50 or 10% of the net tax liability, whichever is greater |
| Newfoundland and Labrador | Department of Finance | $5 fee per set of decals | $25 per set of vehicles | $50 or 10% of the net tax liability, whichever is greater |
| Nova Scotia | Government of Nova Scotia | No fee | 12.50 per set of decals | $50 or 10% of the net tax liability, whichever is greater |
| Ontario | Government of Ontario | $3 fee per set of decals | $50 or 10% of the net tax liability, whichever is greater | |
| Prince Edward Island | Government of Prince Edward Island | $10 | $25 per set of decals | $50 or 10% of the net tax liability, whichever is greater |
| Québec | Revenue Québec | No fee | $12.70 per set of decals | $50 or 10% of the net tax liability, whichever is greater |
| Saskatchewan | Ministry of Finance | $25 | $10 per set of decals | $50 or 10% of the net tax liability, whichever is greater |
Non-IFTA Canadian Provinces
- Nunavut
- Northwest Territory
- Yukon Territory
Note: A IFTA license is valid for one year ending December 31st. It is advisable to renew your IFTA license before November 30th to avoid any penalties.