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Basics

10 min read

Getting Started with IFTA

New to IFTA? This guide covers everything you need to know about licensing, registration, and staying compliant from day one.

What is IFTA?

The International Fuel Tax Agreement (IFTA) is a tax collection agreement between the 48 contiguous US states and 10 Canadian provinces. It simplifies fuel tax reporting for motor carriers operating in multiple jurisdictions.

Instead of registering and filing separate fuel tax returns with each state you travel through, you register with your base jurisdiction and file a single quarterly return that distributes the taxes owed to each jurisdiction.

Do You Need IFTA?

You need an IFTA license if you operate a qualified motor vehicle that travels in two or more IFTA member jurisdictions. A qualified motor vehicle is:

  • A motor vehicle with two axles and a gross vehicle weight or registered gross vehicle weight exceeding 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 Your IFTA License

1

Choose Your Base Jurisdiction

Your base jurisdiction is typically where your vehicles are registered, where mileage is accrued, or where operational control is exercised.

2

Apply for IFTA License

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

3

Receive Your Credentials

You'll receive an IFTA license and decals for each qualified vehicle. Decals must be displayed on both sides of the cab.

4

Start Tracking

Begin tracking all miles traveled and fuel purchased by jurisdiction from day one.

Your IFTA Obligations

Once you have your IFTA license, you're responsible for:

  • Quarterly filing: Submit returns by the last day of the month following each quarter

  • Record keeping: Maintain trip and fuel records for 4 years

  • Display decals: Keep current IFTA decals visible on all qualified vehicles

  • Annual renewal: Renew your license and decals each year (typically by December)

  • Pay taxes due: Submit payment with your quarterly return if you owe taxes

Common Mistakes to Avoid

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Operating without credentials: Always carry your IFTA license and have decals displayed

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Incomplete records: Keep detailed records from day one, not just at filing time

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Missing deadlines: Set reminders for quarterly filing dates

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Skipping zero returns: You must file even if you had no activity

Ready to calculate your first return?

Our free calculator makes IFTA easy for new carriers.

Get Started