Renting a Semi? The Complex Rules of IFTA for Rental Trucks
Renting a replacement truck? Don't accidentally commit tax evasion. Learn the 30-day rule and how to handle fuel tax for short-term leases.
Whose Tax Is It Anyway?
When your rig breaks down and you rent a replacement from Penske, Ryder, or PacLease, who is responsible for the fuel tax? The answer depends on the calendar.
The 30-Day Threshold
In general, IFTA responsibility is determined by the length of the rental agreement:
- Short-Term (Less than 30 days): Usually, the rental company (Lessor) reports and pays the fuel tax. The cost is often built into your rental fee or mileage charge.
- Long-Term (30 days or more): The responsibility typically shifts to YOU (Lessee). You must add the rental truck to your IFTA fleet and report its miles and fuel.
Read the Fine Print
Never assume. Check your rental contract for a "Fuel Tax Permitting" clause.
- Some agencies charge a flat "fuel tax permit fee" per day to handle it for you.
- Others require you to obtain a temporary fuel trip permit for each state you enter if you aren't adding it to your IFTA license.
Trip Permits vs. IFTA
If you only need the rental for a week and are crossing 3 states, it might be cheaper/easier to buy temporary fuel permits for those states rather than messing with your IFTA account. However, these permits can cost $20-$50 per state.
Managing Rentals in FastIFTA: If you are responsible for the tax, simply set up a separate "Vehicle Profile" for the rental unit in FastIFTA. This keeps its miles distinct from your main truck, making it easy to generate a report that includes (or excludes) the rental as needed.