Everything you need to know about IFTA

What is IFTA?

IFTA is the International Fuel Tax Agreement. Through IFTA, member jurisdictions act cooperatively to collect and administer taxes related to motor fuel usage.

The purpose of IFTA is to establish and maintain the concept of one fuel use license for interstate carriers and one administering base jurisdiction for each license holder. An IFTA license allows a taxpayer to file one tax report that covers all member jurisdictions.

WHICH JURISDICTIONS ARE MEMBERS OF IFTA?

The 48 contiguous US States and 10 Canadian Provinces are members of IFTA.

Alaska, Hawaii, D.C., and territories from the USA and Canada are not members of IFTA.

What do I need to file IFTA?

To file your IFTA report, you need to enter the total miles traveled per jurisdiction, totals gallons of fuel consumed per jurisdiction, total tax-paid gallons of fuel purchased per jurisdiction, and the current tax rate during the current quarter.

Who should file IFTA?

Commercial motor vehicles are required to file for IFTA if they travel between two or more jurisdictions and match the following criteria:

• Has two axles and gross vehicle weight that exceeds 26,000 pounds or
• Has two axles and a registered weight that exceeds 26,000 pounds or
• Has three or more axles or
• Has a combination weight that exceeds 26,000 pounds.

What is the penalty for IFTA?

The penalty for not reporting before the quarterly deadline is $50 or 10% of the fuel tax you owe, depending on which amount is greater.

When should I file IFTA?

IFTA reports are due by the last day of the month, after the end of each quarter.