IFTA Fuel Tax Report Requirements

Years ago, every state had its own regulations and mandates regarding IFTA fuel tax report requirements. Most have now become members of the IFTA. An acronym for the International Fuel Tax Agreement, the system works to standardize many of the varied and (occasionally) contradicting rules that many states used to create. Some may retain additional requirements for their fuel tax reporting. However, the process has become a lot simpler now that many have adopted this more universal standard. That makes it smart to use a trucking management software like TruckingOffice Pro to compute your IFTA filing.

How Does IFTA Work?

Under the International Fuel Tax Agreement, motor carriers that operate in multiple states or jurisdictions need only file one fuel tax return each quarter with their base jurisdiction. Before IFTA, drivers had to purchase multiple fuel permits for interstate travel. This was a costly and time-consuming hassle. With IFTA, a motor carrier receives an IFTA license and IFTA stickers for each qualifying vehicle. IFTA stickers require renewal every year.

The International Fuel Tax Agreement applies to the lower 48 states and 10 Canadian provinces, known as member jurisdictions. Under IFTA, motor carriers file a single quarterly fuel tax report with their base jurisdiction. The IFTA report determines the taxes owed or the refund due. It can then redistribute the taxes to each member jurisdiction. It is based on the number of miles driven in that particular jurisdiction.

IFTA tax filing may seem complicated and confusing. Once you understand the basics of IFTA reporting, you’ll see that it is a much more convenient and sensible process. With IFTA, you can quickly and easily complete your fuel tax reports for the quarter using the Department of Revenue’s online IFTA Fuel Tax System and ensure that you remain compliant with IFTA reporting requirements. That way, you can focus on doing what you do best – driving.

The Standards

Registering a base state.

Because most trucking companies operate all over the country. Or at least across a wide region, it can be difficult to know in which (or even in how many) states to register as a base. The IFTA does not set absolute standards for these. So, you will need to contact the local register if you have a place of business in a state. Additionally, you’ll need to maintain mileage records, and/or register your vehicles there.

Qualified vehicles and fuels.

Here the IFTA is a little more specific with its fuel tax reporting requirements. To be qualified, a motor vehicle must travel in at least two IFTA jurisdictions. Additionally, it must weigh over 26,000 pounds, or have three or more axles on the power unit. Or (less applicable to truck companies) be a bus that can carry at least 20 passengers. These vehicles must use diesel, propane, or natural gas for proper tax reporting and licensing. Though some jurisdictions will require even gas-powered vehicles to be licensed.

Applications.

Every vehicle belonging to a carrier must apply for an annual license. Two decals validate this which goes on either door. You must contact your local department of motor vehicles for an application for a new vehicle. However, the IFTA will send renewal applications automatically for the following years. Once approved, every qualified vehicle must carry a copy of the distributed licenses.

Fuel tax reporting.

A must submit your fuel tax reports four times a year. It must cover all of a carrier’s qualified vehicles. Scheduled in quarters on the calendar year, a check must accompany each report to cover any tax payment due. These must be made payable to the base state’s Secretary of State. Furthermore, reports will reveal that you have accumulated a tax credit from tax-paid fuel. If this number exceeds whatever you owe, a refund or additional credit to cover future payments will be given.

Receipts.

In order to receive those refunds or tax credits, receipt information from tax-paid purchases must accompany each quarterly fuel tax report. These receipts must include the following. The date of purchase, fuel type, seller’s name, and address, purchaser’s name, vehicle registration number, the total amount of sale, and the number of gallons purchased.

Records.

In addition to keeping up with fuel tax reporting, all registered carriers must maintain records of individual vehicle mileage reports. These must be summarized monthly. Additionally, the must include information on all fuel bought at service stations.

Breaking it Down State by State

Each vehicle belonging to a motor carrier is required to apply for an annual IFTA license. You can apply for an IFTA license by submitting an IFTA-1A Application to the Department of Revenue.

According to IFTA requirements, when applying for an IFTA license, you will be required to provide the following information:

• Proof of residency – You must have proof of a valid physical address (lease or mortgage statement) in your state of residence. You must also provide proof that you filed income taxes with the Department of Revenue for the previous three years.
• License plate – You must have an International Registration Plan license plate unless you are using a farm or transporter plate on your vehicle.
• DOT number – If you are driving for someone else, you will need to provide a copy of your DOT authority lease and your Registrant DOT Number.
• Owner/Officer information – You will have to provide the names and Social Security Numbers of all owners or officers.

IFTA and Your Trucking Business

IFTA was created to simplify the reporting of fuel used by carriers that operate in multiple states. However, without a clear understanding of IFTA requirements, you could end up incurring unnecessary costs and/or penalties. With an IFTA sticker, you have a license that covers all of the states that you operate in. That means you no longer have to purchase multiple permits for interstate travel.

You simply pay the appropriate IFTA fuel tax to your base jurisdiction, and the taxes are distributed to each member state or jurisdiction based on the number of miles you traveled in each state. Say, for instance, that you fuel up and pay tax in Pennsylvania and then drive into West Virginia, Ohio and Indiana. The IFTA says taxes from the Pennsylvania fuel purchase will be distributed to West Virginia, Ohio, and Indiana based on the number of miles you drive in each of those states. IFTA fuel tax gets calculated each quarter, and any money owed or credited is due at that time.

One of the most common sources of confusion regarding IFTA fuel tax is the fact that tax rates differ from state to state. Under IFTA, if you purchase fuel in a low-cost state and use that fuel in a high tax state, you could end up owing taxes at the end of the quarter. Conversely, if you purchase fuel in a high-cost state and use that fuel in a low tax state, you could end up with a credit at the end of the quarter. IFTA reporting and everything that goes along with it may seem like a hassle. But with your individual IFTA login, it is easy to take care of your IFTA requirements online.

Handling IFTA Reporting Transactions

Motor carriers can handle all of their IFTA reporting transactions using the Department of Revenue’s online IFTA Fuel Tax System. Once you have your IFTA license, log into the system using your IFTA login. From there you can process and pay your quarterly tax returns, order additional IFTA stickers and manage other important aspects of your license.

All the information you need to take care of your IFTA requirements is in one convenient place. Thanks to our TruckingOffice IFTA fuel tax software.

These IFTA fuel tax report requirements are specific and can be at times aggravating. But compared to the hassle of complying with multiple states’ standards, the universality of IFTA’s regulations is a welcome thing. For more information on IFTA software for trucking, check us out!

85 Comments

I run a hot shot business. 2 trucks, 2 trailers, each combined weight less than 26000 lbs. When deliveries are out of state, a fuel and trip permit is purchased for each respective State. I am new to the business and need to understand why I pay to drive in a state and pay again with IFTA? Reply

Because you need to have license plates for each state and pay each state their fuel tax. Check into IRP apportioned plates, and an IFTA license. Reply

Must a driver owning his own truck file these reports if they do not leave the state to deliver his loads? His is logger. Reply

No. If you don’t leave your state then you do not need to file IFTA reports or get an IFTA permit. Reply

What if you renewed your IFTA License for the year and ended up only running intrastate all year and didn’t leave your home state? Do you file quarterly since you obtained your license?

Yes. If you have an active IFTA permit, then you need to file the IFTA tax forms. Just fill them in with zero miles for the other states.

You can run up to 26,000 pounds with a pickup you do not need an IRP or IFTA. You will need an MC, DOT, and appropriate insurance. In North Carolina, where I live, a retired military or other “special designation plates” can be used in lieu of a commercial plate to haul up to 26,000 pounds. You will need a vehicle and trailer rated for your intended loads, and understand that your limit of 26,000 pounds includes everything rolling down the road, including you. Reply

The one guy said that he was under 26000 combined weight . I thought you didn’t have to file IFTA unless you are 26001 or more on your registration?? Fixing to haul campers and they said we have to change registration to 26000 ! Reply

Yes. That’s right. IFTA is not required if your vehicle is 26,000 pounds or less, or if it doesn’t travel out of your home state. Reply

So say a company has 5 trucks, but they are each under the 26,000lb mark. The company would not have to get an IFTA license then? Even if they all run out of state?

Hi I’m new IFTA. I worked outside of my base state due to they had no work and worked in another state for the 1st 2 weeks in October. I haven’t worked anymore this quarter. Do I still file IFTA since I didn’t work in my base state and only worked 2 weeks?

Yes. If your GVWR is over 26,000 lbs. and you drive outside of your base state, then you need to file the IFTA fuel tax forms.

If your power units is less than 3 axles you do not need either permit. It is optional but not mandatory. You may want to register for both just to save some headaches but that would be up to you. Reply

I have apportion plates and two trucks that may be go to our neighboring state twice a year. We stay within a 50 mile radius of our homebase. Do I need to track every day miles or only when I go out of state Reply

Hi Guys! If I am an owner operator choosing to live out of my truck to save on living expenses; how can I qualify for IFTA in any base jurisdiction? It really defeats the purpose of saving money to have to rent a place just to get IFTA. Thanks for any tips or ways to work around having to lease, rent, or own a place. Thanks! Mike Reply

if i have a bulk fuel tank in my yard do i need to report the miles for that equipment or is it exempt? Reply

Having a bulk fuel tank does not make you exempt from IFTA reporting. If you drive out of state then you have report you miles and gallons on the IFTA reports the same way. Reply

i too bulk fuel at my yards & operate interstate. do i have to separate my individual unit’s fuel consumption by state? Reply

Hello, You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/IFTA We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc. We also have an ELD solution available if needed. https://www.truckingoffice.com/eld/ Feel free to start a 30 day free trial at https://www.truckingoffice.com/. There’s no obligation! Reply

Which states do you need to also get individual permits besides the IRP to drive through them? I know Kentucky is one and just found out that NM is another. Reply

If i run agricultural plates hauling my own hay as a farmer and i sometimes go out of state do i need IFTA or am i exempt? Reply

If that “HotShot” company is under 26,000lbs does it still require IFTA? Am I not understanding this correctly? “To be qualified, a motor vehicle must travel in at least two IFTA jurisdictions, and: must weigh over 26,000 pounds, or have three or more axles on the power unit, or (less applicably to truck companies) be a bus that can carry at least 20 passengers”. Reply

Hello! You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/ifta/ We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc. Feel free to start a 30 day free trial at truckingoffice.com. There’s no obligation! Reply

I have 2 trucks both under the 26,000 lb requirement and both only have 2 axels. My trucks do not leave NYS, so am I required to file IFTA 100 or is that not necessary? Reply

Hello, You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/ifta/ Please let us know if you need anything else! Reply

Hello, You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/IFTA We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc. We also have an ELD solution available if needed. https://www.truckingoffice.com/eld/ Feel free to start a 30 day free trial at https://www.truckingoffice.com/. There’s no obligation! Reply

Hello, You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/ifta/ Please let us know if you need anything else! Reply

I have trucks registered for California only, but have 3 or 4 loads that we would like to deliver to Oregon. What measures or permits will I need to drive these trucks out of California as we do not have apportioned tags or IFTA? Reply

Hello, You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/ifta/ Please let us know if you need anything else! Reply

I am a Driveaway self employed contacted driver. I pick up and deliver trucks buses and motor homes.i contract under three companies. Only one charges me fuel taxes.i pay taxes at fuel pump are they double dipping. Reply

Hello, You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/ifta/ Please let us know if you need anything else! Reply

Hello, You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/IFTA We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc. We also have an ELD solution available if needed. https://www.truckingoffice.com/eld/ Feel free to start a 30 day free trial at https://www.truckingoffice.com/. There’s no obligation! Reply

If you fuel up in your state and cross lines to another state but you do not purchase fuel and come back in the same 11 hour driving day do you have to log a trip report Reply

Hello, You would need to contact your local IFTA office for that information. http://www.truckingoffice.com/IFTA We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc. We also have an ELD solution available if needed. https://www.truckingoffice.com/eld/ Feel free to start a 30 day free trial at https://www.truckingoffice.com/. There’s no obligation! Reply

Hi, we are a small trucking company with 1 truck and might be going to one other State occasionally, are we subject to IFTA filing or is there another option for cases like that? Like a temporary card? Reply

Hello, You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/ifta/ Please let us know if you need anything else! Reply

Hello! You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/ifta/ Please let us know if you need anything else! Reply

I’ve been driving under someones authority, gave notice (40 days), at the end of the 40 days I returned plates & all stickers. In that 40 days the truck (hot shot) was driven just for personal reasons in a 50 mile radius, never out of state never loaded and only added fuel once. He is asking for a video of my VIN and current Odometer reading. Does IFTA require this information? Reply

Hello, You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/ifta We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc. We also have an ELD solution available if needed. https://www.truckingoffice.com/eld/ Feel free to start a 30 day free trial at https://www.truckingoffice.com/. There’s no obligation! Reply

If I have over 150 vehicles about to grow to over 200 what software would you recommend to ease the pain of IFTA reporting? Reply

Hello! We are an invoicing system that helps you stay organized. Once you enter your trips into the system, we use PC Miler’s best practical route to calculate the miles and sort them state-by-state, including the empty miles. Once you’ve entered your loads and fuel expense, the software does the rest! You can easily generate the IFTA report and it will have the miles and gallons sorted for you. On our Pro version, there is also an IFTA tax report that calculates the taxes per state! There are 15 other reports on the right side of the dashboard page that you can automatically generate from that as well. For instance, you can generate profit and loss reports, unit revenue, driver settlements, create invoices, expenses and maintenance reports, etc. Feel free to start a 30 day free trial at https://www.truckingoffice.com/ There’s no obligation! Reply

Hello, You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/ifta/ Please let us know if you need anything else! Reply

I work for a mobile calibration company. We use Ford F350 trucks and 34′ mobile cal labs. Our combined weight is under 23,000 lbs and our power unit is two axles. Are we required to apply for IFTA? Reply

Hello, You would need to contact your local IFTA office for that information. https://www.truckingoffice.com/ifta/ Please let us know if you need anything else! Reply

Do I have to have a IFTA plate if my truck goes into the neighboring state only 1-2x per week? It is only going at the most 45 miles into the state Reply

Hello! You would need to contact your state’s IFTA office for that information. https://www.truckingoffice.com/ifta/ Please let us know if you need anything else! Reply

Hello! With our software, all you would need to do is enter your load information and fuel expenses…our system uses PC Miler’s best practical route to calculate the miles and sorts the loaded and empty miles state-by-state. From there, you can easily generate the IFTA report and it will have all of the miles and gallons sorted. From there, our Pro version also has an IFTA tax report that calculates the taxes per state. Please feel free to start a 30 day free trial at truckingoffice.com. There’s no obligation! Reply

I have a historic registered truck that does not/cannot carry DOT number or MCC per the DOT and the state of CA. I do not qualify because the vehicle is not operated for compensation or hire and does not belong to a company. Colorado still said that IFTA applied to me and I had to make sure I bought enough fuel for the miles I drove across Colorado calculated at 4mpg. The only vehicles that seem to be exempt are RVs. What do you make of this? Reply

I had DOT officer in Colorado tell it the IFTA requirement went off the GVWR and not the of the vehicle at the time of scale or vehicle registration weight. I’ve got a dually with goose neck, I’m registered under 26,000lbs. Reply

I would recommend checking on those details at your local jurisdiction. You can find their contact info at http://www.truckingoffice.com/ifta Reply

What an informative article! very helpful and will surely be helpful to others. thank you for sharing this. Visit here: https://www.globaltruckpermits.com/services/ifta-fuel-tax-permit/ Reply

If we have more than one type of fuel used in each state, do we have a line for each fuel type even if its in the same state? (I am in WA state using their tax form). Reply

I do not have miles due to broken odometers. I only have gallons of gas purchased. What do I do now? .. besides fixing the odometers! Reply

if i have Penske rentals and Agents that add to our fleet and I put a IFTA sticker on the unit do i need to record those miles quarterly? However, i dont add them on my IRP renewal, correct? Reply

I am trying to get a 1992 Freightliner from IL to WA that I bought on auction. Then it will be a farm exempt truck that we’ll only use around the farm. There has to be an easier way for the trucker I hired to get it here. I already filed for a DOT number. Help?? Reply

If i am based in nova scotia but due to some difficulties i opened by buiness in nova scotia and i am still using ontario ifta.
Is this okay ? Reply

You should contact your local IFTA Jurisdiction for answers to specific questions. You can find their site and phone number in our directory at http://www.truckingoffice.com/ifta. Reply

It is an inspiring blog post. The issue handles very nicely. I really appreciate the communication skill of yours and definitely come soon by the time you will complete another write-up. Reply

I am an owner operator with 3 trucks. I am going to hire a driver with their own truck to run under my authority. When filing ifta taxes do I put all 4 trucks mileage and fuel together or how do I need to do it? Reply

You can do it all together on one IFTA account, or you can require the owner operator to maintain their own IFTA account. Reply

I have a 2019 Ford sprinter van I think it’s like 9000 pounds and I have it also a CDL driver do I have to have the ifta? Reply

IFTA is required for commercial vehicles that have GVWR or more than 26,000 pounds and travel to outside of their home state. Reply