International Fuel Tax Agreement (IFTA)
The interstate compact that simplifies fuel tax reporting for carriers operating across multiple states.
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IFTA is a cooperative agreement among U.S. states and Canadian provinces that allows interstate motor carriers to report and pay fuel taxes through a single base jurisdiction, rather than filing separately in every state they operate in. Without IFTA, a carrier operating across multiple states would need to maintain separate fuel tax accounts and file separate returns in each state where they purchased or consumed fuel — an administrative burden that would be enormous for long-haul operators.
Under IFTA, carriers register in their base jurisdiction (the state or province where the carrier is based) and receive an IFTA license and decals for each qualifying vehicle. Each quarter, the carrier files a single fuel tax return with their base jurisdiction reporting the miles traveled and fuel purchased in each member jurisdiction. The base jurisdiction then distributes the tax revenue among the other jurisdictions based on the carrier’s reported mileage.
IFTA applies to qualifying motor vehicles — generally those with three or more axles, or with two axles and a gross vehicle weight over 26,000 lbs — operating in two or more member jurisdictions. Carriers must maintain detailed mileage and fuel records by jurisdiction for each IFTA vehicle, as these records are the basis for the quarterly return and are subject to IFTA audit.
Key Provisions
- Allows carriers to file one quarterly fuel tax return covering all IFTA member jurisdictions.
- Carriers register in their home base state and receive IFTA license and cab cards.
- Quarterly returns report miles traveled and fuel purchased in each member jurisdiction.
- Applies to vehicles with 3 or more axles or 2 axles with GVWR over 26,000 lbs operating in 2 or more jurisdictions.
- Detailed trip records and fuel receipts must be maintained for each IFTA vehicle for audits.
Why It Matters to Truck Owners
IFTA is a mandatory compliance obligation for virtually every interstate commercial carrier with qualifying vehicles. Failure to register, file quarterly returns, or maintain required records results in penalties and potential loss of operating privileges. When buying a commercial truck from a carrier, confirming their IFTA status and whether there are any outstanding fuel tax liabilities is an important part of due diligence.
Frequently Asked Questions
How does IFTA work for a truck owner-operator?
An owner-operator based in Georgia, for example, registers with the Georgia Department of Revenue for IFTA. Georgia provides an IFTA license and decals for each truck. Each quarter, the operator files a return showing miles driven and fuel purchased in each state they operated in. Georgia calculates the tax owed to or refund due from each state and handles the distribution.
What records must I keep for IFTA?
IFTA requires detailed trip records for each qualifying vehicle showing: dates of travel, trip origin and destination, routes traveled, beginning and ending odometer readings, miles traveled by jurisdiction, and fuel purchased with receipts showing date, quantity, cost, and vehicle. Records must be retained for four years from the filing date.
What happens if I don’t have IFTA credentials?
Operating a qualifying vehicle in an IFTA jurisdiction without an IFTA license and current decals is a violation enforceable at roadside. Officers at weigh stations and ports of entry check for IFTA credentials. Unregistered carriers may be required to purchase trip permits on the spot or can be placed out of service.
Official source: IFTA, Inc. — official site
Related Federal Trucking Laws
- Part 379 — Preservation of Records
- Part 367 — Standards for Registration with States (UCR)
- International Registration Plan (IRP)
This page is provided for informational purposes only and is not legal advice. Always verify current requirements at iftach.org or with a qualified transportation attorney.
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