IFTA for New Motor Carriers: Registration and Quarterly Filing

IFTA — the International Fuel Tax Agreement — is a compact among U.S. states and Canadian provinces that simplifies fuel tax reporting for interstate carriers. Instead of filing separate fuel tax returns in every state you drive through, you file a single quarterly return with your base state, and that state distributes the taxes to the other jurisdictions.

Who Qualifies for IFTA

IFTA applies to commercial motor vehicles that:

• Have three or more axles regardless of weight, OR
• Have two axles and a GVWR exceeding 26,000 lbs (or registered weight exceeding 26,000 lbs)
• Operate in two or more IFTA member jurisdictions

Most owner-operators running a semi-truck in interstate commerce qualify. If you’re unsure whether your specific vehicle qualifies, contact your base state’s IFTA office.

How IFTA Works

The logic of IFTA is that fuel taxes should be paid to the states where you drive, not just where you fuel.

Example: You drive 500 miles in Texas, 300 miles in Oklahoma, and 200 miles in Kansas — 1,000 total miles. You buy all your fuel in Texas (where it’s cheaper). Without IFTA, Texas collects all your fuel tax. With IFTA, your return calculates what you owe each state based on miles driven, compares that to the tax included in your actual fuel purchases, and either shows a balance due (you owe money to other states) or a credit (you overpaid in the fueling state).

Your base state collects the net and distributes to the other states. You file one return.

Registering for IFTA

IFTA registration is done with your base state — the state where your vehicles are registered (for IRP) and where you have your principal place of business.

Steps:

1. Contact your base state’s motor carrier office or DMV (search your state name + “IFTA registration”)
2. Provide your USDOT number, EIN, business information, and vehicle information
3. Pay the registration fee (varies by state)
4. Receive your IFTA license and decals

IFTA requires two decals per qualifying vehicle — one on each side of the cab. These must be displayed while operating in member jurisdictions.

Register before your first interstate trip in a qualifying vehicle. Operating without IFTA credentials when required can result in fines.

What You Must Track Each Quarter

IFTA filing requires two core data sets:

1. Miles driven by state/province. Every trip, every mile, recorded by jurisdiction. Your ELD system should track this automatically — confirm with your ELD provider that state mileage reporting is enabled and accurate.

2. Fuel purchased by state/province. Every fuel purchase, including the state where you bought it, the date, gallons, and cost. Your fuel card handles most of this — confirm your fuel card can export IFTA-formatted data.

Keep fuel receipts even if you have a card — receipts are backup documentation for an audit.

Filing Your Quarterly Return

IFTA returns are due quarterly:

Quarter	Period	Filing Deadline
Q1	January — March	April 30
Q2	April — June	July 31
Q3	July — September	October 31
Q4	October — December	January 31

Your base state may have different deadlines — verify with your state’s IFTA office. Some states allow a few extra days; others are strict.

To file your return:

1. Export total miles by state from your ELD
2. Export fuel purchases by state from your fuel card
3. Calculate net fuel tax per jurisdiction (your IFTA software or state portal handles the math)
4. Submit the return through your base state’s online filing portal
5. Pay any balance due, or receive a credit if you’re owed a refund

Many carriers use IFTA software or their fuel card’s built-in IFTA reporting to generate the return. If you’re filing manually, the math isn’t complex — it’s the record-keeping that trips people up.

Record Retention

Keep IFTA records — fuel receipts, mileage reports, filed returns — for at least four years. IFTA audits look at records from prior years. If you can’t produce the documentation for a mileage or fuel claim, you lose the deduction and may owe additional taxes.

Annual IFTA Renewal

IFTA credentials must be renewed annually with your base state. New decals are issued each year and must be displayed starting January 1. Don’t let your decals expire — you cannot legally operate in member jurisdictions on expired credentials.

See First Renewal and Filings Guide for the full annual compliance calendar.

Frequently Asked Questions

Do I need IFTA if I only drive in a few states?

IFTA applies to carriers operating in more than one IFTA member jurisdiction with qualifying vehicles (generally 3+ axles, or over 26,000 lbs GVWR). Most interstate carriers with an MC number qualify. Operating in just two states still requires IFTA if you have a qualifying vehicle.

What happens if I miss an IFTA quarterly filing?

Late IFTA returns are subject to penalties and interest in most jurisdictions. Some states also suspend IFTA credentials for delinquent filings. File on time even if your numbers are zero — a no-operations quarter still requires a filed return.

Who issues my IFTA license — FMCSA or my state?

Your base state issues your IFTA license and decals — not FMCSA. Contact your state's motor carrier or DMV office to register. FMCSA doesn't administer IFTA.