IFTA Tax Rates by State 2026: Complete Reference Guide

What Are IFTA Tax Rates?

IFTA tax rates are the per-gallon fuel tax amounts set by each US state, the District of Columbia, and Canadian province that participates in the International Fuel Tax Agreement. When you file your quarterly IFTA return, these rates determine how much tax you owe (or are credited) for every gallon of fuel deemed consumed in each jurisdiction. The IFTA tax rates by state 2026 figures in this guide represent the most current rates available and should be used as a reference when preparing your quarterly filings.

Rates vary dramatically from one jurisdiction to another. In 2026, the lowest state diesel tax rates are around $0.12 per gallon, while the highest exceed $0.74 per gallon. This six-fold difference means that where your trucks drive and where they fuel up has a significant impact on your net IFTA tax liability. Understanding these rates is essential for accurate filing and for making informed fueling decisions.

For a complete overview of how IFTA works, including registration and record-keeping requirements, see our complete IFTA reporting guide. For step-by-step filing instructions, visit our IFTA quarterly filing tutorial.

How IFTA Diesel Tax Rates Are Determined

Each state's IFTA diesel tax rate is a combination of the federal excise tax and the state-level fuel tax. Understanding this breakdown helps explain why rates differ so much:

• Federal component: The federal diesel fuel excise tax is $0.244 per gallon. This amount is uniform across all states and has remained unchanged since 1993. It is included in the total IFTA rate for each jurisdiction.
• State component: Each state sets its own diesel fuel tax rate, which is added on top of the federal rate. State rates range from approximately $0.08 per gallon (Alaska) to over $0.49 per gallon (Pennsylvania). States fund highway construction and maintenance from these revenues.
• Surcharges and additional fees: Some states impose additional surcharges beyond the base state tax. For example, California includes cap-and-trade and low-carbon fuel standard fees in its effective rate. Indiana, Virginia, and several other states impose supplemental taxes or surcharges that are reflected in the total rate.

The total IFTA rate you use for filing is the combined rate (federal + state + any surcharges) published by IFTA, Inc. for each quarter. You do not need to calculate the breakdown yourself; just use the published total rate for each state.

2026 Diesel Tax Rates by State (All 48 States + DC)

The following table lists the diesel fuel tax rates for all IFTA jurisdictions in the contiguous United States plus the District of Columbia. Rates are listed in dollars per gallon and represent the combined federal, state, and surcharge rate effective for 2026. Rates may change quarterly. Always verify the rate for your specific filing quarter with your base jurisdiction or at iftach.org before submitting your return.

Note: Alaska and Hawaii are not IFTA member jurisdictions. Oregon uses a weight-mile tax system instead of a fuel tax for heavy vehicles, but is listed above with its diesel excise rate for IFTA reporting purposes.

Canadian Province Rates

Canada's ten provinces are IFTA member jurisdictions. Canadian rates are listed in Canadian dollars per liter. When calculating your IFTA return, your base jurisdiction's filing system will handle the currency and unit conversions.

Canadian rates tend to be lower per unit than US rates when converted to dollars per gallon, though this depends on the current exchange rate. British Columbia and Quebec have the highest Canadian rates due to provincial carbon pricing programs.

How to Use the Rates in Your IFTA Calculations: A Worked Example

To illustrate how IFTA tax rates apply to your return, here is a simplified example for a small fleet that operated in four states during Q1 2026:

Fleet data for Q1:

• Total fleet miles: 60,000
• Total gallons consumed: 10,000
• Fleet MPG: 60,000 / 10,000 = 6.0 MPG

In this example, the fleet purchased more fuel in Texas than it consumed there (creating a $300 credit), but owed additional tax in Oklahoma and Missouri where it drove more miles than its fuel purchases covered. The net result is a $12.50 credit, which would be applied to the next quarter's filing.

Notice how the tax rates directly affect the dollar amount: even though the fleet had more net taxable gallons in Oklahoma (+1,000) than in Missouri (+500), the amounts owed are closer than you might expect because Oklahoma's rate ($0.19) is slightly lower than Missouri's ($0.195). High-rate states amplify both taxes owed and credits earned.

Quarterly Rate Changes and How to Stay Current

IFTA tax rates are not static. While many states keep rates consistent for years, others adjust them quarterly or annually based on legislation, inflation indexing, or fuel price formulas. Here is what you need to know about rate changes:

• When rates change: Rate changes can take effect on January 1, April 1, July 1, or October 1, aligned with the start of each IFTA quarter. IFTA, Inc. publishes updated rate tables before each quarter begins.
• Where to find current rates: The official source is IFTA, Inc. (iftach.org), which publishes the rate matrix for each quarter. Your base jurisdiction's IFTA filing portal will also use the correct rates when you file online.
• States that change frequently: States with fuel tax rates tied to wholesale fuel prices or inflation indexes tend to adjust more often. California, Virginia, Indiana, and Georgia are examples of states with variable-rate components. Pennsylvania's oil company franchise tax rate is recalculated annually.
• Filing with the right rates: Always use the rates published for the specific quarter you are filing. If you file Q1 late, you must still use the Q1 rates, not the rates that were in effect at the time you actually submitted the return.

States with the Highest and Lowest IFTA Diesel Rates

Understanding which states have the highest and lowest rates can inform your fueling strategy, though route efficiency should always take priority over tax optimization.

Highest Diesel Tax Rate States (2026)

1. Pennsylvania: $0.7410/gal - By far the highest rate in the nation, driven by the oil company franchise tax. Purchasing fuel in Pennsylvania generates large credits, but the price at the pump already reflects the tax, so there is no arbitrage opportunity.
2. California: $0.6809/gal - Includes cap-and-trade and low-carbon fuel standard costs. California's rate has climbed steadily and is expected to continue increasing.
3. Illinois: $0.5510/gal - Elevated by a combination of state excise tax and underground storage tank fees.
4. Indiana: $0.5400/gal - Includes a significant surcharge component that has pushed Indiana into the top five.
5. Washington: $0.4940/gal - Includes climate-related surcharges added in recent years.

Lowest Diesel Tax Rate States (2026)

1. Mississippi: $0.1800/gal - One of the lowest diesel tax rates in the country with no surcharges.
2. Oklahoma: $0.1900/gal - Consistently among the lowest-rate states for diesel.
3. Missouri: $0.1950/gal - Recently increased from historically lower levels but still very competitive.
4. Louisiana: $0.2000/gal - Tied with Texas for one of the lowest rates in the South.
5. Texas: $0.2000/gal - The state with the second-highest freight volume maintains a very low diesel tax rate.

The spread between Pennsylvania ($0.7410) and Mississippi ($0.1800) is $0.5610 per gallon. On 1,000 taxable gallons, that difference amounts to $561 in tax, illustrating why accurate jurisdiction-level tracking is so important.

How FleetLegend Auto-Syncs IFTA Rates

Manually looking up and entering IFTA tax rates each quarter is not only tedious but risky. A single digit entered incorrectly can throw off your entire return. FleetLegend's IFTA reporting module eliminates this risk by automatically syncing the current quarter's tax rates from authoritative sources.

• Automatic rate updates: When new quarterly rates are published, FleetLegend updates its rate database so your calculations always use the correct rates for the filing period.
• Jurisdiction-level accuracy: Each state's rate, including surcharges and special components, is applied correctly to your mileage data. You do not need to research which states have surcharges or special calculations.
• Historical rates preserved: FleetLegend retains historical rate tables so you can recalculate or file amendments for previous quarters using the rates that were in effect during that period.
• Combined with telematics data: When paired with Motive or Samsara integration, FleetLegend automatically calculates mileage by jurisdiction from GPS data and applies the correct rates, generating a complete, audit-ready IFTA report with minimal manual input.

The combination of automatic mileage tracking, fuel card import, and rate syncing means that what used to take hours of spreadsheet work can be completed in minutes. Learn more about FleetLegend's IFTA features.

Frequently Asked Questions

How often do IFTA tax rates change?

IFTA rates can change at the start of any quarter (January 1, April 1, July 1, or October 1). In practice, most states change rates once per year or less frequently. However, a handful of states with variable-rate components (California, Indiana, Virginia, Georgia) may adjust rates every quarter. Always check the published rates for the specific quarter you are filing before submitting your return.

Do I need to look up rates separately for diesel and gasoline?

Yes. Diesel and gasoline have different tax rates in every state. If your fleet includes IFTA-qualified vehicles that use gasoline (such as certain medium-duty trucks), those vehicles must be reported on a separate fuel-type schedule using the gasoline rates. The vast majority of IFTA-qualified vehicles use diesel, so most carriers only need the diesel rate table.

Should I plan my fueling around IFTA tax rates to save money?

In theory, purchasing more fuel in high-tax states (to build credits) and less in low-tax states (where you owe tax anyway) balances out. In reality, the tax is built into the pump price, so you pay it regardless. The fuel purchase simply determines whether the tax flows as a credit on your IFTA return or as a higher pump price. Route efficiency, fuel discounts through fleet fuel programs, and reducing deadhead miles will save you far more money than trying to optimize around IFTA rates. Focus on the lowest total cost per gallon (pump price), not the tax rate alone.

Where can I find the official IFTA rate tables?

The official rate tables are published by IFTA, Inc. at iftach.org. Your base jurisdiction's IFTA filing portal also provides the correct rates for each quarter. If you use FleetLegend, rates are synced automatically and you do not need to look them up manually.

Conclusion

Understanding IFTA tax rates by state helps you file accurate quarterly returns and appreciate why jurisdiction-level mileage tracking matters so much. A 1,000-gallon difference between a high-rate state like Pennsylvania and a low-rate state like Mississippi represents over $550 in tax liability. While you cannot realistically optimize routes around tax rates, you must track every mile accurately to ensure you are paying the correct amount to each jurisdiction. FleetLegend automatically syncs current quarter tax rates and applies them to your GPS-verified mileage data, generating accurate IFTA calculations without manual rate lookups.