IFTA
International Fuel Tax Agreement
An agreement among U.S. states and Canadian provinces that simplifies fuel tax reporting for motor carriers operating in multiple jurisdictions.
The International Fuel Tax Agreement (IFTA) is a cooperative tax agreement among the 48 contiguous U.S. states and 10 Canadian provinces. It was created to simplify the reporting of fuel use taxes by motor carriers that operate in more than one jurisdiction. Under IFTA, a carrier registers in a single base jurisdiction and files quarterly fuel tax reports that cover all member jurisdictions.
IFTA applies to qualified motor vehicles, which are defined as vehicles used, designed, or maintained for the transportation of persons or property that have two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds, or have three or more axles regardless of weight, or are used in combination when the combined weight exceeds 26,000 pounds. Recreational vehicles are excluded from IFTA requirements.
Carriers must maintain detailed records of all fuel purchases and miles traveled in each jurisdiction. Quarterly returns are filed with the base jurisdiction, which then redistributes the tax revenues to the other jurisdictions based on the miles traveled in each. If a carrier has purchased more fuel in a jurisdiction than what is owed based on miles driven, they receive a credit. If they have purchased less, they owe additional tax.
Operating without proper IFTA credentials can result in fines and penalties at weigh stations and during roadside inspections. Carriers found operating without IFTA credentials may be required to purchase temporary fuel permits at each state border crossing.
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Frequently Asked Questions
Who needs IFTA credentials?
Any motor carrier operating qualified motor vehicles (generally over 26,000 lbs or with 3+ axles) in two or more IFTA member jurisdictions needs IFTA credentials. This applies to both interstate and international operations between the U.S. and Canada.
How often do I file IFTA returns?
IFTA returns must be filed quarterly with your base jurisdiction. The quarters end on March 31, June 30, September 30, and December 31, with returns due by the last day of the month following the end of each quarter.
What records do I need to keep for IFTA?
You must maintain records of all fuel purchases (with receipts), miles traveled in each jurisdiction, and vehicle identification information. These records must be kept for at least four years and be available for audit by any member jurisdiction.
Related Terms
IRP
International Registration Plan
A registration reciprocity agreement among U.S. states, the District of Columbia, and Canadian provinces for the proportional registration of commercial motor vehicles traveling across jurisdictions.
USDOT Number
United States Department of Transportation Number
A unique identifier assigned by the FMCSA to commercial motor carriers operating in interstate commerce, used to track safety information and compliance.
CDL
Commercial Driver's License
A specialized driver's license required to operate large, heavy, or hazardous material vehicles in the United States, issued by individual states under federal standards.
FMCSA
Federal Motor Carrier Safety Administration
The federal agency within the U.S. Department of Transportation responsible for regulating the trucking and bus industries, with a focus on reducing crashes, injuries, and fatalities.