What is IFTA fuel tax?

Short answer

IFTA is the International Fuel Tax Agreement. It lets a qualifying motor carrier report travel and fuel use in participating jurisdictions through its base jurisdiction. It is not governed by 40 CFR 60.4214, which concerns stationary engines.

In plain English

For operations covered by IFTA, a carrier obtains its license and decals from its base jurisdiction, keeps distance and fuel records, and files quarterly fuel-tax returns there. The base jurisdiction distributes the tax among the participating jurisdictions. The agreement, its manuals, and the base jurisdiction's tax instructions govern qualification, exemptions, reporting, and deadlines.

What to do

• Confirm your vehicle and cross-jurisdiction operation qualify with your base jurisdiction.

• Use that jurisdiction's current filing instructions and rates.

• Keep distance by jurisdiction and supporting fuel receipts; do not calculate an individual tax bill from this overview.