IFTA reporting & filing: A Short Guide

IFTA reporting & filing: A Short Guide

If you are reading this, your business is most likely about transportation and consists of commercial trucks. Then, you must have heard of IFTA (International Fuel Tax Agreement). Nowadays, most people are confused and do not understand what IFTA is and how they can generate their IFTA report. In this article, you will learn all about IFTA.


What is IFTA?

IFTA (International Fuel Tax Arrangement) is a cooperative agreement between 48 states in the United States and ten provinces in Canada. It allows inter-jurisdictional carriers to report and pay taxes on their Vehicle’s fuel across states using a single fuel tax license.

IFTA requires Inter-jurisdictional carriers to report :

  • The amount of motor fuel purchased and the amount of fuel that would have been consumed.
  • The distance traveled in each jurisdiction

Taxes on motor fuels such as gasoline, diesel, propane, gasohol, methanol, ethanol, natural gas, and biodiesel are tracked, collected, and shared by member states.

IFTA is one of the many regulations that commercial trucks owners must be aware of to ensure legal activities.

Six jurisdictions, however, are not IFTA members. As a result, IFTA credentials will not be accepted. Alaska, Hawaii, and the District of Columbia in the United States and the Northwest Territories, Nunavut, and Yukon Territory in Canada. Mexico is also not a signatory to the IFTA pact.

All miles driven in these places should be reported in the IFTA report as non-IFTA miles. As a result, these miles are taxed differently.


What is an IFTA report?

The IFTA fuel tax report is a quarterly filing that calculates fuel taxes over paid or under paid. This information is then used to shift taxes to the correct jurisdictions.


Am I eligible for IFTA?

If your motor vehicle is used or designed to move people or property, it probably must be registered under the IFTA. Specifically:

  1. If you have three or more axles
  2. If you have two axles and a gross vehicle or registered a gross car that weighs more than 26,000 pounds or 11,797 kilograms
  3. If your vehicles are used in combination with a combined gross vehicle weight of more than 26,000 pounds or 11,797 kilograms.
  4. If you have a bus capable of transporting at least 20 passengers (less relevant to trucking companies).

It is important to note that some fleets fit this description yet do not require an IFTA license, such as intrastate fleets.

These fleets must run on diesel, propane, or natural gas to be eligible for IFTA tax reporting.


How do I file an IFTA report?

There are three ways to file your IFTA report:

  • In-person: When your return is brought to the office, it is considered received.
  • Electronically: When you submit your return electronically, it is considered received on the date it is sent.
  • Via mail: Make sure your envelope’s postmark date is on or before the last date to file.


What do I include in an IFTA report?

If a fleet is eligible to obtain an IFTA license, the application must be completed in the member jurisdiction where the fleet operates. Some information that must be included:

  1. Your registered business name
  2. Your Postal address
  3. Your USDOT number (federal business number)

The application for an IFTA license can be downloaded from the internet. Some jurisdictions require these documents to be mailed, while others accept them through fax or at a taxpayer services office. After their IFTA application has been processed, trucking fleets can be issued a temporary license while they wait for their permanent support and decals to arrive in the mail.


What are the IFTA due dates?

  • For Q1 (January to March): April 30
  • For Q2 (April to June): July 31
  • For Q3 (July to September.): October 31
  • For Q4 (October to Dec.): January 31

If that day is a weekend or a holiday, then reports are due the next business day.

Fuel tax rates in each US state (Gasoline)

AL – 0.2600

AR – 0.2450

AZ – 0.1800

CA – 0.0000

CO – 0.2200

CT – 0.2500

DE – 0.2300

FL – 0.3570

GA – 0.2870

IA – 0.3000

ID – 0.0000

IL – 0.5010

IN – 0.3100

KS – 0.2400

KY – 0.2460

LA – 0.0440

MA – 0.2000

ME – 0.0000

MI – 0.3830

MN – 0.2850

MO – 0.1700

MS – 0.1800

MT – 0.0000

NC – 0.3610

ND – 0.2300

NE – 0.2870

NH – 0.0000

NJ – 0.5070

NM – 0.0000

NV – 2300

NY – 0.3840

OH – 0.3850

OK – 0.1900

OR – 0.000

PA – 0.5760

RI – 0.3400

SC – 0.2400

SD – 0.0000

TN – 0.2600

TX – 0.2000

UT – 0.3140

VA – 0.2120

VT – 0.0000

WA – 0.4940

WI – 0.3290

WV – 0.3570

WY – 0.2400