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IFTA (International Fuel Tax Agreement)

The agreement that lets interstate carriers file one quarterly fuel-tax return covering all member jurisdictions.

Also called: International Fuel Tax Agreement, Fuel tax return

Quick answer

What is IFTA?

IFTA is the International Fuel Tax Agreement among the 48 contiguous US states and 10 Canadian provinces. Qualifying interstate carriers file one quarterly return with their base state reporting miles driven and fuel purchased in each jurisdiction, and the taxes are redistributed automatically.

Last verified by ELD Hub.

Who has to register

IFTA applies to qualified motor vehicles operating in two or more member jurisdictions — vehicles over 26,000 lbs gross weight, or with three or more axles regardless of weight, or used in combination exceeding 26,000 lbs. You register in your base state and receive one license plus a decal set per truck.

What the return reports

Each quarter you report, by jurisdiction, the miles you drove and the taxable gallons you purchased. The system compares fuel you bought in a state against fuel you burned there, and you either owe the difference or receive a credit. Buying fuel where taxes are low but driving elsewhere is exactly what produces a balance due.

  • Total miles and taxable miles per jurisdiction
  • Gallons purchased per jurisdiction, with receipts retained
  • Fleet miles-per-gallon, calculated across the whole quarter
  • Net tax due or credit per jurisdiction

Deadlines

Returns are due the last day of the month following the quarter: April 30, July 31, October 31, and January 31. A return is required even for a quarter with no travel. Late filing triggers a penalty of $50 or 10% of the tax due, whichever is greater, plus monthly interest per jurisdiction.

Where ELD data comes in

The hardest part of IFTA is accurate mileage by state, which is what trip sheets get wrong. An ELD already records GPS position continuously, so the jurisdiction split can be generated from data you are legally required to collect anyway. That removes the arithmetic errors that most commonly trigger an IFTA audit.

Example

An owner-operator runs 12,000 miles in a quarter across Texas, Oklahoma, and Arkansas but buys most fuel in Texas because it is cheaper. The quarterly return shows Texas gallons exceeding Texas miles, producing a Texas credit and a balance owed to Oklahoma and Arkansas.

Why it matters for a small fleet

IFTA is one of the few filings where sloppy records cost money directly. Underreporting a jurisdiction's miles produces assessments and interest, and audits routinely go back several quarters.

Running 1–20 trucks? Compliance starts at $15/truck/month

ELD Hub is an FMCSA-registered ELD with HOS logs, DVIRs, IFTA, and GPS included. No contract. PT-30 hardware is $150 with free ground shipping, or keep the PT-30 or IOSiX you already own.

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FAQ

Common questions

Who is exempt from IFTA?

Vehicles under 26,000 lbs with two axles that operate only intrastate, recreational vehicles, and some government vehicles. Purely intrastate carriers do not need IFTA, though they still pay state fuel taxes at the pump.

What are the IFTA filing deadlines?

April 30, July 31, October 31, and January 31 — the last day of the month after each quarter closes. A zero-activity quarter still requires a filed return.

Does ELD Hub include IFTA reporting?

Yes. IFTA mileage by jurisdiction is generated from the same GPS data the ELD already records, and it is included in the $15 per truck per month plan rather than sold as an add-on.

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