Understanding IFTA

The International Fuel Tax Agreement (IFTA) is an agreement between the lower 48 states of the United States and the Canadian provinces, to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction.

How IFTA Works

Before IFTA, truck drivers had to obtain a fuel tax permit for every single state they drove through. This was a logistical nightmare. With IFTA, you simply:

• Register in your base jurisdiction (home state).
• Receive one license and a set of decals for your truck.
• File one quarterly tax return to your base jurisdiction.

Your base state then handles distributing the taxes to all the other states you drove in. It simplifies the paperwork significantly, but it requires accurate record-keeping.

Who Needs to Register?

You generally need an IFTA license if your vehicle is used for interstate commerce and meets one of these criteria:

• Has two axles and a gross vehicle weight exceeding 26,000 lbs.
• Has three or more axles regardless of weight.
• Is used in combination, when the weight of such combination exceeds 26,000 lbs.

Why Compliance Matters

Failing to register for IFTA or keeping poor records can lead to hefty fines, penalties, and even the seizure of your vehicle. It's crucial to track your miles and fuel purchases accurately for every trip.

Simplify Your Compliance: Don't let IFTA paperwork slow you down. FastIFTA automates the entire process—from scanning receipts to generating your quarterly return. Try it today and keep your focus on the road.