International Fuel Tax Agreement (IFTA)

Federal law requires all commercial carriers who meet certain criteria to comply with IFTA regulations. If your truck meets the criteria, registration is non-negotiable.

Participants in IFTA include the 48 contiguous states of the United States, and 10 Canadian Provinces A commercial vehicle may be considered qualified if they are used to transport goods or people across multiple jurisdictions. Qualified vehicles include trucks with three or more axles, or trucks with two axles and a gross vehicle weight that is more than 26,000 pounds (or truck with trailer that exceeds 26,000 pounds). There may be instances of a vehicle that may not require an IFTA license despite meeting this criteria, please refer to the official DOT site for details.

The IFTA rule is that taxes are paid at the pump and distributed to each state. The taxes are dispersed based on miles driven in a particular state or province.

To determine how much fuel tax is owed, it is calculated based on where the fuel was consumed. Fuel tax credit is determined based on where the fuel was purchased. IFTA finds the difference between fuel used and fuel purchased for each jurisdiction. Each member jurisdiction sets its own IFTA tax rate. Additionally, there are filing deadlines of April 30, July 31st, October 31, and January 31st. For more information about IFTA, IFTA late penalties, and/or IFTA interest rates, please visit the official website at https://www.iftach.org/

To calculate your vehicle's taxable gallons consumed, divide your total taxable miles by your overall fuel mileage, then subtract your total tax for paid gallons purchased for the net taxable gallons.

IFTA reports are due quarterly. The deadline to file your IFTA report each quarter is the last day of the month April 30, July 31st, October 31, and January 31st. For more information about IFTA, IFTA late penalties, and/or IFTA interest rates, please visit the official website at https://www.iftach.org/

Once a carrier attains an IFTA license and IFTA decals, the reporting can begin. Geotab's IFTA solution streamlines and consolidates compliance by automating your IFTA reporting process, saving time, improving accuracy and simplifying fuel tax reporting.