The Truth About Exempt Miles: How to Legally Lower Your Tax Bill
Stop leaving money on the table. Learn about toll road exemptions (MA Turnpike, NY Thruway) and off-highway operations that can lower your IFTA bill.
Legal Deductions You Might Be Missing
Nobody wants to pay more tax than necessary. IFTA allows for "exempt miles"—distances traveled where fuel tax is not required or is calculated differently. However, claiming them requires precise documentation.
Toll Road Exemptions
Some states allow you to deduct miles driven on specific toll roads because you are paying for the road maintenance via tolls rather than fuel tax.
- Massachusetts Turnpike: One of the most common exemptions. Miles driven here are often non-taxable.
- New York Thruway: Similar exemptions apply for certain segments.
Note: Not all toll roads are exempt. Always check the specific jurisdiction's rules.
Off-Highway Operations
Fuel used off public roads is generally not subject to IFTA tax. This includes:
- Agricultural work: Driving in fields.
- Forestry/Logging: Miles driven on private logging roads.
- Construction sites: Idling or moving within a closed site.
The Burden of Proof
You cannot simply estimate "10% off-road." Auditors will reject estimates immediately. You need:
- Entry and exit GPS coordinates or odometer readings.
- Toll receipts matching the time of travel.
- Detailed route logs.
These records must be retained for 4 years.
Automate Your Deductions: FastIFTA allows you to annotate specific route segments as "Exempt." This creates the paper trail auditors demand, allowing you to legally lower your tax bill without the fear of penalties.