International Fuel Tax AgreementIFTA
A tax agreement between the 48 contiguous US states and 10 Canadian provinces that simplifies fuel tax reporting for interstate motor carriers.
IFTA (International Fuel Tax Agreement) lets motor carriers file one quarterly fuel tax return covering all jurisdictions they drove through, instead of filing separately in every state and province. It applies to qualified motor vehicles operated in 2 or more IFTA jurisdictions.
A qualified motor vehicle is any vehicle with two axles and gross weight or registered gross weight over 26,000 lbs, three or more axles regardless of weight, or used in combination when the combined weight exceeds 26,000 lbs.
IFTA is calculated as: (miles driven in jurisdiction ÷ fleet MPG) × jurisdiction's tax rate, minus fuel taxes already paid at the pump in that jurisdiction. Returns are filed with the carrier's base jurisdiction by the last day of the month following the end of each quarter (April 30, July 31, October 31, January 31).
━━ How FleetKit handles IFTA
FleetKit Fuel + IFTA filing