What is IFTA and who needs to file?

IFTA (International Fuel Tax Agreement) is an agreement between the 48 contiguous US states and Canadian provinces that simplifies fuel tax reporting for motor carriers operating across multiple jurisdictions. Commercial vehicles traveling across state/provincial lines must file quarterly IFTA returns.

How is IFTA tax calculated?

IFTA tax is calculated by first determining your fleet's average MPG across all jurisdictions. Then for each jurisdiction, calculate fuel consumed based on miles traveled. Subtract fuel purchased in that jurisdiction from fuel consumed to get taxable gallons. Multiply taxable gallons by the jurisdiction's tax rate to get tax owed (or credit if negative).

How often do I need to file IFTA?

IFTA returns must be filed quarterly. The quarters are: Q1 (Jan-Mar), Q2 (Apr-Jun), Q3 (Jul-Sep), and Q4 (Oct-Dec). Returns are typically due by the last day of the month following the end of each quarter.

IFTA Calculator — Fuel Tax for Truckers

Understanding IFTA

The International Fuel Tax Agreement (IFTA) simplifies the reporting of fuel use by motor carriers that operate in more than one jurisdiction. Instead of filing separate fuel tax returns in each state or province, carriers file a single quarterly return with their base jurisdiction, which then distributes the taxes to other jurisdictions.

How IFTA Calculation Works

1. Calculate Fleet MPG

Total Miles ÷ Total Gallons Purchased = Fleet MPG

2. Fuel Consumed per Jurisdiction

Miles in Jurisdiction ÷ Fleet MPG

3. Taxable Gallons

Fuel Consumed - Fuel Purchased

4. Tax Owed

Taxable Gallons × Tax Rate

What You Need to Track

Miles per Jurisdiction: Total miles driven in each state/province (including empty miles)
Fuel Purchases: Gallons bought in each jurisdiction with receipts
Tax Rates: Current fuel tax rates for each jurisdiction (pre-loaded in calculator)

IFTA Filing Requirements

Quarterly Filing: Due last day of month following quarter end
Q1 (Jan-Mar): Due April 30
Q2 (Apr-Jun): Due July 31
Q3 (Jul-Sep): Due October 31
Q4 (Oct-Dec): Due January 31

Important Notes

Record Keeping

You must keep detailed records of all miles traveled and fuel purchased for at least 4 years. This includes trip dates, routes, odometer readings, and fuel receipts. Good records are essential in case of an audit.

Weight-Mile Tax States

Kentucky, New Mexico, and New York have additional weight-mile taxes in addition to standard fuel tax. Oregon has only a weight-mile tax. These require additional calculations not included in standard IFTA returns.

Penalties

Late filing or payment can result in penalties of $50 or 10% of taxes due (whichever is greater), plus interest. Make sure to file on time even if you have no operations during a quarter (zero filing).

IFTA Fuel Tax Calculator