Frequently Asked Question
Who Qualifies for the IFTA?
The IFTA only applies to vehicles that are a certain size or weight. If your vehicle has three or more axles, then it qualifies for the IFTA, regardless of its weight. If your vehicle has two axles and weighs more than 26,000 pounds (or it's part of a combination that exceeds the same weight threshold), then it qualifies for the IFTA. Notably, the IFTA only applies to commercial motor vehicles (CMVs). Therefore, if you have a large vehicle, like an RV, that meets the weight requirement, you don't have to sign up for the IFTA.
Do Local Trucks Need IFTA?
Yes. Any commercial truck that travels across state lines and meets IFTA weight or axle requirements must register for IFTA, even if it’s based locally.
How Do I Manually Calculate IFTA?
Track the miles you drive and the fuel you purchase in each jurisdiction. Then, for each state or province, divide the miles driven by your vehicle’s fuel efficiency to find gallons used, multiply by the local fuel tax rate, and sum the taxes owed across all jurisdictions for your quarterly return.
What is the Easiest Way to Track IFTA?
The easiest way to track IFTA is to use a dedicated log or electronic system to record your mileage and fuel purchases for each jurisdiction. Many carriers use ELDs, GPS tracking apps, or simple spreadsheets to keep accurate, organized records for quarterly filings.
What State Has the Highest IFTA Tax?
The state with the highest IFTA fuel tax is typically California, which has one of the highest diesel and gasoline tax rates in the U.S.
Do I Need to Register My Trailer with the IFTA?
No, trailers are exempt from the IFTA. Only commercial motor vehicles need to get IFTA decals. However, a trailer can, when used as part of a combination, push a tractor into needing the IFTA. They just don't need them on their own.
What Credentials Will I Get Once I Sign Up for the IFTA?
You'll get two pieces of identification that will prove your IFTA registration to the authorities. The first is your actual IFTA license, which you'll need to make copies of to keep in each of your vehicles. You should keep the original at your business's address. You'll also get two decals to place on the outside of your vehicle. One will go on each side of your cab. This allows the authorities to quickly confirm that you have IFTA registration.
When Do I Need to File My IFTA Returns?
IFTA returns are due once per quarter. The first quarter of the year lasts from January through March. For this period, your returns are due on April 30th. The subsequent deadlines are July 31st, October 31st, and January 31st of the following year.
What Happens if I Miss My IFTA Due Date?
Missing your due date will incur a penalty. These penalties will vary based on your base jurisdiction, but they will be either a flat rate or a percentage of your tax liability. They will also increase over time, so make sure you pay them quickly!
I Didn't Haul At All This Quarter. Do I Still Have to File an IFTA Return?
Yes, even if you don't have to pay fuel taxes this quarter, you still need to file your return. Luckily, it'll be an easy one to file!
What Kinds of IFTA Records Do I Need to Keep?
You'll need to keep records of your mileage driven through each jurisdiction. These should include:
—The date of your trip
—Your route
—Total mileage and mileage in each jurisdiction
—Receipts for any fuel you buy
—Any intermediate stops you make along the way
You have to keep these records in storage for multiple years afterwards. Each jurisdiction has different requirements for how long you have to keep your records, but it's honestly best to hold onto them for around 5 years. That way, you should be compliant with the IFTA's record-keeping rules.
Does My IFTA License Renew Automatically?
No, you'll have to renew your IFTA license each year. You must submit your renewal by December 31st of each year. If you need to make changes, you'll need to note those changes with your renewal.