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10 min read

Getting started with IFTA.

If you just got your IFTA license, or you are about to, this is what to know about licensing, registration, decals, and what your first quarter actually requires.

What IFTA is, briefly

The International Fuel Tax Agreement is a tax-collection arrangement among the 48 contiguous U.S. states and 10 Canadian provinces. It replaces the old system of registering separately and paying fuel tax in every state you crossed.

Instead, you register with one base jurisdiction, file one quarterly return, and the agreement handles distributing what you owe to each state or province you drove through.

Do you need an IFTA license

You need one if you operate a qualified motor vehicle in two or more IFTA jurisdictions. Qualified means any of:

A motor vehicle with two axles and a gross vehicle weight or registered gross weight over 26,000 pounds.

A motor vehicle with three or more axles, regardless of weight.

Any vehicle used in combination when the combined weight exceeds 26,000 pounds.

How to get the license

Choose your base jurisdiction

Usually where your vehicles are registered, where mileage accrues, or where operational control sits. You can only have one.

Apply

Through your state's motor carrier services or DMV. Most states offer online IFTA registration. You'll need your USDOT number and EIN.

Receive credentials

An IFTA license and decals for each qualified vehicle. Decals must be displayed on both sides of the cab.

Start tracking

Miles by jurisdiction and fuel by jurisdiction, from day one. Backfilling later from receipts and ELD logs is painful and error-prone.

What you owe in return

Once you hold an IFTA license, the obligations are:

Quarterly filing: by the last day of the month following each quarter.

Records: trip and fuel records kept for 4 years.

Decals visible: current IFTA decals on every qualified vehicle.

Annual renewal: license and decals every year, typically by December.

Pay what you owe: any tax due is submitted with the quarterly return.

Mistakes that cost the most

Operating without credentials. Carry your IFTA license; keep decals displayed.

Incomplete records. Capture data from day one, not at filing time.

Missing deadlines. Set reminders. Late penalties start at $50 plus interest.

Skipping zero returns. File even if you had no qualified activity that quarter.

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