IFTA – International Fuel Tax Agreement


CA IFTA DecalThe International Fuel Tax Agreement, more commonly referred to as IFTA, is an agreement between states and jurisdictions—such as Canadian provinces—that simplifies the reporting of fuel use by motor carriers that operate and drive in more than one state or jurisdiction.

How the IFTA Program Works

Motor carriers who need to participate in the International Fuel Tax Agreement will have to apply for and obtain an account from their state. For Example, in California, motor carriers can obtain IFTA licenses and decals from the California State Board of Equalization.

Once motor carriers have established IFTA accounts they will have to track and report their miles traveled in each state that they traveled in and also the fuel purchased in each state. The fuel taxes paid to the state where they purchased fuel will be credited to their accounts.

IFTA account holders file their reports with their state at the end of each fiscal quarter. These reports include all miles traveled in states and jurisdictions participating in IFTA and all of the gallons of fuel purchased. These numbers are averaged to determine the tax liability that is due to each state and jurisdiction.

Once the report is filed the motor carrier will either be required to pay fuel taxes that are due or receive a refund from their state.

The International Fuel Tax Agreement is held between the Lower 48 States and certain Canadian provinces. The following are Non-IFTA Jurisdictions:

United States

  • Alaska
  • Hawaii
  • District of Columbia

Canada

  • Yukon Territory
  • Northwest Territory
  • Nunavut

Mexico

  • All states
  • Federal District

If you need help with your IFTA filings, feel free to contact us and we can help you file your reports.