IFTA: International Fuel Tax Agreement
A guide to fuel tax reporting for carriers operating across state and provincial lines.
What is IFTA?
The International Fuel Tax Agreement is an agreement among the 48 contiguous U.S. states and 10 Canadian provinces that simplifies fuel tax reporting for interstate carriers. Instead of filing fuel tax returns in every jurisdiction you operate in, you file a single quarterly return through your base jurisdiction, which then redistributes fuel taxes to the other jurisdictions based on miles traveled.
Who needs IFTA?
IFTA applies to qualified motor vehicles that travel in two or more IFTA member jurisdictions. A qualified motor vehicle is one that meets either of these criteria:
- Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds
- Has three or more axles regardless of weight
- Is used in combination when the combined weight exceeds 26,000 pounds
Recreational vehicles are exempt. Vehicles operating only within a single jurisdiction do not need IFTA.
How IFTA works
You apply for an IFTA license through your base jurisdiction (the state or province where your vehicles are registered or have an established place of business). Your base jurisdiction issues IFTA decals for each qualified vehicle.
Each quarter you report total miles driven and total fuel purchased in each jurisdiction. IFTA calculates the net tax owed or credit due per jurisdiction based on the difference between fuel tax paid at the pump and fuel tax owed based on miles driven. Your base jurisdiction collects or distributes the net amounts.
Filing deadlines
| Quarter | Period | Due date |
|---|---|---|
| Q1 | Jan 1 – Mar 31 | April 30 |
| Q2 | Apr 1 – Jun 30 | July 31 |
| Q3 | Jul 1 – Sep 30 | October 31 |
| Q4 | Oct 1 – Dec 31 | January 31 |
Common penalties
- Late filing: interest accrues on unpaid tax from the due date, plus a penalty (typically $50 or a percentage of tax due)
- Underpayment: interest on the difference between what was paid and what was owed
- Recordkeeping failures: can result in estimated assessments based on average fuel consumption rates rather than actual data
- Operating without valid IFTA credentials: fines vary by jurisdiction and can include vehicle impoundment
Recordkeeping requirements
Carriers must retain IFTA-related records for a minimum of five years from the filing date or due date, whichever is later. Required records include:
- Individual trip reports showing date, origin, destination, route, and miles per jurisdiction
- Fuel purchase receipts with date, seller name and address, number of gallons, fuel type, price per gallon, and vehicle/unit number
- Monthly and quarterly summaries of miles and fuel by jurisdiction
- Odometer or hubodometer readings at the beginning and end of each trip
IFTA vs non-IFTA jurisdictions
Oregon does not participate in IFTA because it uses a weight-mile tax instead of a fuel tax. Carriers operating in Oregon must file separately with Oregon. Alaska, Hawaii, and the District of Columbia are also non-IFTA jurisdictions. In Canada, the Northwest Territories, Nunavut, and Yukon are not IFTA members. Carriers entering these jurisdictions must obtain separate fuel tax permits.
Helpful links
- IFTA Inc. (iftach.org) — official IFTA administrative body
- IFTA manuals and procedures — governing documents and audit manual