The International Fuel Tax Agreement (IFTA) is a compact among 48 US states and 10 Canadian provinces designed to simplify fuel tax reporting for interstate motor carriers. Instead of filing separate fuel tax returns in every jurisdiction a carrier operates through, IFTA allows carriers to file a single quarterly return with their base jurisdiction — the state where the carrier is registered and operates — which then calculates and distributes the correct tax owed to each traveled state. IFTA applies to qualified motor vehicles: those with a GVWR over 26,000 lbs, 3 or more axles regardless of weight, or combination vehicles over 26,000 lbs. Each qualifying vehicle must display two IFTA decals (one per side of cab) and carry a valid IFTA license. Carriers must file returns quarterly even if no miles were driven. Non-IFTA jurisdictions — Alaska, Hawaii, and Canadian territories — require separate fuel tax arrangements.
IFTA operates on a net tax settlement model. Each quarter, a carrier calculates the total fuel used in each jurisdiction (based on miles traveled and fleet average MPG) and subtracts the fuel already purchased in that jurisdiction. The difference represents either a tax owed to or a credit from each state. The base jurisdiction collects net taxes owed and pays out credits, then settles with the other states — the carrier only deals with one agency.
A vehicle meeting any one of these three criteria is a qualified motor vehicle for IFTA purposes. Excluded vehicles: recreational vehicles, school buses used solely for transportation of students, and federal or state government vehicles.
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | January – March | April 30 |
| Q2 | April – June | July 31 |
| Q3 | July – September | October 31 |
| Q4 | October – December | January 31 |
Two IFTA decals required — one affixed to each side of the cab exterior. Decals are valid January 1 through December 31 of the license year, plus a 2-month grace period through February of the following year.
License issued by base jurisdiction — the state where the carrier is registered and primarily operates. The license must be carried in the cab; decals must be displayed at all times.
Returns due even with zero activity — if no qualified miles were driven in a quarter, a zero return must still be filed by the deadline to avoid late penalties.
Record total miles traveled in each IFTA member jurisdiction per quarter, including miles driven on toll roads and off-highway miles as required by your base state.
Keep receipts for all retail fuel purchases showing date, seller name, seller location (state/province), vehicle unit number or VIN, and exact gallons purchased.
Fuel drawn from a company bulk tank must be proportionally allocated to each jurisdiction based on miles traveled. A separate bulk fuel log is required per vehicle.
Record starting and ending odometer readings for each trip that crosses a jurisdiction boundary. ELD data can satisfy this requirement if your carrier uses a compliant system.
IFTA records must be retained for a minimum of 4 years and must be made available for audit upon request by your base jurisdiction or any member jurisdiction.
The following jurisdictions are NOT members of IFTA. Carriers operating in these areas must comply with separate fuel tax reporting requirements directly with those jurisdictions.
IFTA (International Fuel Tax Agreement) is an agreement among 48 US states and 10 Canadian provinces that simplifies fuel tax reporting for interstate carriers. Instead of filing fuel tax returns in every state you drive through, you file one return per quarter with your base jurisdiction, which then distributes the taxes to the appropriate states.
You need an IFTA license if you operate a qualified motor vehicle in interstate commerce across 2 or more IFTA member jurisdictions. A qualified motor vehicle is one with a GVWR over 26,000 lbs, 3 or more axles regardless of weight, or a combination vehicle over 26,000 lbs GVWR.
Q1 (January–March) is due April 30. Q2 (April–June) is due July 31. Q3 (July–September) is due October 31. Q4 (October–December) is due January 31. Returns are due even if no miles were driven.
Apply through your base jurisdiction's motor carrier division — the state where your carrier is registered and maintains qualified motor vehicles. Most states offer online IFTA applications. You'll receive an IFTA license and two decals for each qualifying vehicle, valid January 1 through December 31 of the license year.
You must maintain records of miles traveled in each jurisdiction and fuel purchased in each jurisdiction with receipts. Records must be kept for 4 years and be available for audit. Fuel receipts must show date, seller, location, vehicle ID, and gallons purchased.
Disclaimer
The information on this page is compiled from publicly available government sources and is provided for general informational purposes only. TruckRadar is an independent search engine — we are not affiliated with any government agency and this content does not constitute legal or compliance advice. Regulations change frequently; always verify current requirements directly with the official source before making compliance decisions.
Official source: IFTA.org — International Fuel Tax AssociationLast reviewed: 2026-01