IFTA Reporting Guide for Small Carriers
How IFTA actually works, when you owe and when you're owed, and how to file your quarterly return without surprises.
The International Fuel Tax Agreement is a state-by-state fuel-tax collection scheme that lets carriers operating in multiple jurisdictions file a single quarterly return through their base state. The mechanics aren't complicated — but the bookkeeping is unforgiving. Here's the framework every small carrier should be running.
Who needs an IFTA license
If you operate a qualified motor vehicle (over 26,000 lbs GVWR or any combination over 26,000 lbs, or three-or-more-axle power units regardless of weight) across two or more IFTA jurisdictions, you need an IFTA license and quarterly returns. Intrastate-only operators are exempt.
Filing deadlines
- Q1 (Jan–Mar) — return due April 30
- Q2 (Apr–Jun) — return due July 31
- Q3 (Jul–Sep) — return due October 31
- Q4 (Oct–Dec) — return due January 31 of the following year
What you owe (or are owed)
For each state your trucks operated in, you compute total miles driven and gallons consumed. The state's fuel tax rate × your gallons = the tax owed for that state. Subtract the fuel tax already paid at the pump (recorded by state on every fuel receipt) and the difference is what you owe — or what's owed back to you. Net the balances across all states and you have one quarterly bill or refund.
What records you need
- Total miles per state per quarter (from ELD or trip sheets)
- Total gallons purchased per state per quarter (from fuel receipts)
- MPG per truck per quarter — used to fall back on calculated gallons when receipts and miles drift
- Trip permits for any non-IFTA trucks operating outside their base state
Tax rates change every quarter. Always verify rates at iftach.org before filing — the rate your software shipped with may already be stale.
Common mistakes
- Estimating per-state miles when an audit-grade ELD report is available
- Filing without reconciling fuel cards against fuel receipts
- Missing a late filing — even a one-day-late return is treated as nonfiling
- Not maintaining trip-by-trip records for at least four years
Run your fleet on CloudTMS
Drag-and-drop dispatch, automated settlements, IFTA reporting, DOT compliance, and a driver mobile app — all in one place.
Start your free trial