Please note: This is not legal advice and should be used for entertainment purposes only. You absolutely will need to do a deeper dive research on each step and consult with an attorney [or multiple ones] to do this legally and safely.
IFTA—it’s one of those acronyms that every trucker hears, but not everyone fully understands. If you’ve ever asked yourself “Do I need it?”, “How do I file it?”, or “What happens if I mess it up?”—you’re not alone.
Let’s break it down in plain language so you know exactly what you’re dealing with and how to stay on the right side of the rules.
? What Is IFTA?
IFTA stands for International Fuel Tax Agreement.
It’s an agreement between the lower 48 U.S. states and Canadian provinces to simplify fuel tax reporting for motor carriers that operate in more than one jurisdiction.
Instead of filing separate fuel taxes in every state you drive through, IFTA lets you file one report with your base state.
? Who Needs an IFTA License?
You’ll need an IFTA license if you operate a qualified motor vehicle that:
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Has two axles and a gross vehicle weight of over 26,000 pounds, or
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Has three or more axles, regardless of weight, or
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Is used in combination and the total weight exceeds 26,000 pounds.
If you only drive within one state (intrastate), you don’t need IFTA—but as soon as you cross a state line, you likely do.
? What Does an IFTA License Do?
Once approved:
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You get an IFTA license (keep a copy in your truck)
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You get IFTA decals for each side of your truck
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Your base state becomes responsible for collecting and distributing fuel taxes on your behalf
? How Are IFTA Taxes Calculated?
Every time you buy fuel, you pay fuel tax at the pump.
At the end of each quarter, you file a report that shows:
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Miles driven in each state
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Gallons purchased in each state
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Your fuel tax liability is calculated based on where you drove, not where you bought the fuel.
This helps states get their fair share of tax based on actual road use.
? When Do You File IFTA Reports?
IFTA is filed quarterly:
| Quarter | Due Date |
|---|---|
| Jan 1 – Mar 31 | April 30 |
| Apr 1 – Jun 30 | July 31 |
| Jul 1 – Sep 30 | Oct 31 |
| Oct 1 – Dec 31 | Jan 31 |
Late filings or missed payments = fines and penalties.
Even if you didn’t operate, you must file a zero report if you have an active license.
? How to File IFTA Reports
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Track your miles in each state (ELD or manual logs)
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Keep fuel receipts—showing date, location, and gallons purchased
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Use your base state’s online IFTA system or approved software
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Double-check for accuracy before submitting
Tip: Many truckers use bookkeeping or compliance services to help file IFTA—especially in multi-truck operations.
? What Happens If You Don’t Comply?
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Late fees and interest on unpaid taxes
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Suspended authority or registration holds
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Surprise audits—IFTA audits can go back 4 years
✅ Pro Tips for Staying IFTA-Compliant
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Track mileage by state lines, not just by trip
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Don’t rely on GPS summary reports alone—keep detailed logs
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Make digital copies of all fuel receipts
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Set calendar reminders for filing deadlines
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Consider using apps like TruckersHelper, Rigbooks, or ATBS
? Bottom Line
IFTA might seem like a hassle—but once you understand the system, it becomes just another part of running your business. Stay organized, file on time, and you’ll keep the wheels turning without trouble from the tax man.
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