IFTA Reporting Complete Guide for Trucking Companies

Key Takeaways

IFTA is mandatory for any truck over 26,000 lbs (or 3+ axles) that crosses state lines — no minimum trip threshold

File quarterly through your base jurisdiction by the last day of the following month (Apr 30, Jul 31, Oct 31, Jan 31)

Track mileage by state using GPS/telematics — estimated mileage is the #1 audit finding

Keep records 4 years including trip logs, fuel receipts, and vehicle lists for audit readiness

Automation saves hours — FleetLegend pulls telematics data and calculates taxes automatically

What Is IFTA?

IFTA reporting is a mandatory compliance requirement for virtually every interstate trucking operation in North America. The International Fuel Tax Agreement (IFTA) is a cooperative agreement among the 48 contiguous United States, the District of Columbia, and 10 Canadian provinces that simplifies the reporting and payment of fuel taxes for motor carriers operating across multiple jurisdictions. This IFTA reporting guide covers everything you need to know, from the fundamentals of how the agreement works to the detailed mechanics of calculating, filing, and staying audit-ready.

Before IFTA existed, a carrier operating in 30 states would need to obtain fuel tax permits from each state, file separate quarterly returns with each state, and make separate payments to each state. IFTA eliminated this complexity by creating a single-filing system. Under IFTA, a carrier registers with one base jurisdiction (typically the state where the fleet is based) and files a single quarterly return through that jurisdiction. The base jurisdiction then collects or distributes the appropriate fuel tax amounts to every other jurisdiction where the carrier operated during the quarter.

The fundamental principle behind IFTA is simple: fuel taxes should be paid to the jurisdiction where the fuel is actually consumed (burned), not necessarily where it was purchased. Since trucks can fill up in one state and drive through several others on a single tank, IFTA provides the framework to allocate fuel tax obligations fairly across all jurisdictions based on actual miles driven.

Who Needs to File IFTA?

IFTA applies to interstate carriers operating qualified motor vehicles. A vehicle qualifies for IFTA if it meets both of the following criteria:

Vehicle qualification (must meet at least one):

The vehicle has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds (11,797 kg), OR
The vehicle has three or more axles regardless of weight, OR
The vehicle is used in combination (tractor-trailer) and the combined weight exceeds 26,000 pounds

AND the interstate requirement:

The vehicle travels in two or more IFTA member jurisdictions

This means that if you operate a Class 8 tractor-trailer that crosses even one state line during any quarter, you are subject to IFTA. Recreational vehicles are explicitly excluded from IFTA requirements, as are government vehicles and buses used for personal transportation when not transporting property for hire.

IFTA Jurisdictions

IFTA membership includes 58 jurisdictions across the United States and Canada:

United States (48 states + DC): All 48 contiguous states plus the District of Columbia participate in IFTA. Alaska and Hawaii are not IFTA members because they do not share land borders with other IFTA jurisdictions.

Canadian provinces (10): Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, and Saskatchewan. The three northern territories (Yukon, Northwest Territories, and Nunavut) are not IFTA members.

How IFTA Tax Is Calculated

The IFTA calculation determines how much fuel tax you owe to (or are owed by) each jurisdiction where your trucks operated. The core concept is comparing how much fuel you consumed in a state versus how much fuel you purchased in that state.

The calculation follows this formula for each jurisdiction:

Calculate fleet MPG — Total miles driven across all jurisdictions divided by total gallons of fuel consumed.
Calculate taxable gallons per jurisdiction — Miles driven in the jurisdiction divided by fleet MPG.
Determine net taxable gallons — Taxable gallons minus gallons actually purchased in that jurisdiction.
Apply the jurisdiction's tax rate — Multiply net taxable gallons by the state's per-gallon fuel tax rate.

Quarterly Filing Deadlines

IFTA returns are due on the last day of the month following the end of each quarter. These deadlines are firm, and late filings trigger automatic penalties and interest.

Q1 (January - March): April 30
Q2 (April - June): July 31
Q3 (July - September): October 31
Q4 (October - December): January 31

Required Records and Documentation

IFTA requires carriers to maintain comprehensive records supporting their quarterly returns. These records must be kept for a minimum of four years from the filing date and must be made available upon request during an audit. Required records include:

Mileage records — Individual trip records showing the date, origin, destination, route of travel, beginning and ending odometer readings, and total miles by jurisdiction.
Fuel purchase records — Receipts or card statements for every fuel purchase showing the date, seller name and address, number of gallons, fuel type, price per gallon or total cost, and the vehicle unit number.
Vehicle information — Fleet list showing each qualified vehicle's unit number, VIN, make, model, year, and fuel type.
Distance records by vehicle — Odometer readings or telematics summaries showing total miles per vehicle per quarter, broken down by jurisdiction.
Summary reports — Quarterly summaries showing total fleet miles, total fleet gallons, fleet MPG, and the calculation details for each jurisdiction.

Common IFTA Mistakes and Penalties

The following mistakes are the most common IFTA compliance failures:

Inaccurate mileage tracking — This is the number one IFTA audit finding. The best prevention is automated mileage tracking through telematics integration.
Missing or incomplete fuel receipts — Receipts that lack required information will be disallowed during an audit.
Filing late — Late IFTA filing incurs a penalty of $50 or 10% of the net tax liability, whichever is greater.
Not filing zero returns — Even if your trucks sat idle, you must still file a return showing zero miles and zero gallons.
Using incorrect tax rates — IFTA tax rates can change every quarter. Always verify you are using the rates effective for the specific quarter you are filing.

How FleetLegend Simplifies IFTA

IFTA compliance is one of the most time-consuming administrative tasks for trucking companies. FleetLegend's IFTA reporting feature automates the heaviest parts of this process:

Telematics-based mileage by jurisdiction — FleetLegend integrates with Motive and Samsara to pull GPS-verified mileage data. State-line crossings are detected automatically.
Automated fuel card import — Fuel purchase data from your fleet fuel cards is imported directly into FleetLegend, organized by jurisdiction, vehicle, and date.
Automatic fleet MPG and tax calculations — FleetLegend computes your fleet MPG, calculates taxable gallons per jurisdiction, and applies the correct quarterly tax rates.
One-click quarterly report generation — Generate a complete, audit-ready IFTA report with a single click.

Frequently Asked Questions

Do I need IFTA if I only cross state lines occasionally?

Yes. There is no minimum frequency or minimum mileage threshold. If a qualified motor vehicle operates in two or more IFTA jurisdictions during any quarter, you need an IFTA license and must file a return for that quarter.

What happens if I get caught operating without IFTA decals?

Operating a qualified vehicle without valid IFTA decals can result in fines that vary by jurisdiction, typically ranging from $100 to $500 per occurrence. In some states, the vehicle can be placed out of service.

Can I use different MPG figures for different trucks in my fleet?

No. IFTA requires a single fleet-wide average MPG for each fuel type for the quarter. You cannot use individual truck MPG figures.

What records do I need to keep for an IFTA audit?

You must retain all supporting records for at least four years from the filing date. This includes trip records, fuel purchase receipts, vehicle fleet lists, and copies of your filed IFTA returns.

Conclusion

IFTA compliance is non-negotiable for interstate trucking operations. While the quarterly filing process may seem complex at first glance — tracking miles by jurisdiction, organizing fuel purchases, calculating fleet MPG, applying varying tax rates — it becomes manageable with the right systems and habits in place.

The carriers who struggle with IFTA are typically those relying on manual mileage estimation, incomplete fuel records, and last-minute scrambles before deadlines. The carriers who breeze through IFTA audits are those with GPS-verified mileage from day one, complete fuel card records automatically organized, and quarterly filing that takes minutes instead of hours.

If you're still doing IFTA the hard way, there's a better path. FleetLegend's IFTA automation eliminates the tedious work so you can file confidently, avoid penalties, and focus on running your fleet.