If you run trucks across state or provincial borders, you've probably heard of IFTA. This guide explains what it is, who it applies to, and what it means for your fuel-tax reporting.
The Basics: What IFTA Stands For and Why It Exists
IFTA stands for the International Fuel Tax Agreement, a cooperative agreement among the United States and Canada. Its goal is to simplify fuel-use tax reporting for carriers that operate in multiple jurisdictions.
Instead of filing separate fuel-tax returns in every state or province, you file a single quarterly return with your base jurisdiction, which then distributes taxes to other members.
Which Vehicles and Fleets Must Register for IFTA?
Generally, you must register for IFTA if you:
- Operate qualified motor vehicles over a certain gross weight or number of axles
- Travel in more than one IFTA member jurisdiction
Each jurisdiction's rules may differ slightly, so always check your base state's guidance.
How IFTA Reporting Works Each Quarter
On your quarterly IFTA return, you report:
- Total miles driven in each jurisdiction
- Total gallons purchased in each jurisdiction
- Tax paid at the pump vs tax due based on fuel used
Your base jurisdiction uses this information to calculate your overall net tax due or credit.
Records You Must Keep (and for How Long)
IFTA requires you to maintain detailed records of trip and distance by jurisdiction, fuel purchases and usage, and supporting documents such as bills of lading, dispatch records, and GPS data. Failure to keep adequate records can lead to assessments based on estimates, plus penalties and interest. See the IFTA Audit Survival Guide.
Making IFTA Easier With Automation
Manually tracking miles and gallons every quarter is possible—but painful. With iFuelTax, you can import or sync trip and fuel data from your existing systems, apply current tax rates automatically, and generate file-ready reports and audit-ready histories. You stay compliant without living in spreadsheets.