What is IFTA Tax and Reporting?

September 26, 2025

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The International Fuel Tax Agreement (IFTA) is an agreement among 48 U.S. states and 10 Canadian provinces that simplifies how fuel taxes are reported for carriers operating across state or provincial lines. Instead of filing separate tax returns in each jurisdiction, motor carriers file a single quarterly report through their base jurisdiction.


This report covers fuel purchases, miles driven, and tax owed to each member location based on where the fuel was used. Knowing what IFTA is helps companies stay organized, avoid overpaying or underreporting taxes, and stay in good standing with regulators.


Understanding IFTA tax and reporting is part of a larger compliance strategy. Carriers who operate in multiple jurisdictions need to track mileage, maintain fuel receipts, and file on time every quarter. Inaccuracies or late filings can lead to penalties or increased scrutiny during a
DOT audit.

Why IFTA Tax and Reporting Matters

IFTA reporting affects a company’s ability to operate across multiple jurisdictions. Each state and province uses fuel tax revenue to maintain its infrastructure. IFTA creates a system that divides the tax based on where the fuel was used, not where it was purchased.


For trucking companies, this requires precise tracking of both mileage and fuel data. Common errors include mismatched trip logs, missing fuel receipts, and inaccurate miles-per-gallon calculations. These mistakes can lead to fines, revoked licenses, or failed audits. During a DOT compliance review, IFTA records are often reviewed alongside driver logs, vehicle inspections, and other operational data.

International fuel tax.

Accurate IFTA reporting reduces risk and supports uninterrupted operations. National Fleet Services helps carriers stay compliant by maintaining clean records and making sure all mileage and fuel data are ready for quarterly filings.

How IFTA Tax is Calculated Across Jurisdictions

IFTA tax is calculated using a combination of miles driven, fuel purchased, and each jurisdiction’s tax rate. The process starts with calculating your fleet’s average miles per gallon. That figure is then used to estimate how much fuel was consumed in each state or province.


Once fuel use per jurisdiction is known, each location’s current tax rate is applied. The goal is to make sure each member jurisdiction receives its share of tax based on where the fuel was used, not just where it was bought.


To calculate IFTA tax accurately, carriers need:


  • Total miles traveled in all jurisdictions


  • Total gallons of fuel purchased during the quarter


  • A breakdown of miles and fuel per jurisdiction



  • Updated tax rates for each state or province


Knowing how these elements work together helps carriers stay in compliance and avoid misreporting. 

IFTA Reporting Requirements and Deadlines

Carriers licensed under IFTA must file a fuel tax report every quarter, even if no miles were traveled or no fuel was purchased during that time.


Each report must include:


  • Total miles traveled in all IFTA jurisdictions


  • Total gallons of fuel purchased


  • A breakdown of miles and gallons by jurisdiction


  • The fleet’s average miles per gallon for the quarter

Reports are submitted through the base jurisdiction, which then calculates the tax owed or credits due. That jurisdiction handles payment distribution to other member states or provinces.


Filing deadlines are as follows:


  • Q1 (January to March): due April 30


  • Q2 (April to June): due July 31


  • Q3 (July to September): due October 31


  • Q4 (October to December): due January 31

Late filings may lead to penalties, interest charges, or suspension of your IFTA license. Keeping accurate records and tracking data in real time makes it easier to meet deadlines and reduce reporting stress.

Common IFTA Compliance Challenges for Trucking Companies

Quarterly IFTA reporting can create challenges for carriers that rely on manual tracking or incomplete records. Some of the most frequent issues include:

  • Missing or incorrect mileage data

    Inaccurate odometer readings and inconsistent trip logs make it difficult to report true miles per jurisdiction.

  • Lost fuel receipts

    Fuel purchases must be backed by clear documentation. Missing or faded receipts can lead to underreported fuel use.

  • Inconsistent data across systems

    Discrepancies between ELD logs, dispatch records, and fuel card reports can cause reporting delays or trigger audits.

  • Using outdated tax rates

    Each jurisdiction updates its fuel tax rate regularly. Applying the wrong rate may result in miscalculated tax liability.

  • Overdue filings

    Busy operations sometimes miss reporting deadlines. Even one late submission can lead to penalties or license suspension.

These issues increase the risk of audit findings and added costs. Carriers that address reporting gaps early and use consistent tracking methods have fewer compliance problems over time.

Simplifying IFTA Reporting with Fleet Management Software

Managing IFTA reporting manually can take up valuable time and leave room for errors. Fleet management software reduces that workload by automating mileage tracking, syncing fuel purchases, and applying the correct tax rates for each jurisdiction. It also stores records in one place, making quarterly filings faster and more accurate.


DOTFocused, the fleet management platform from National Fleet Services, is built to simplify compliance tasks like IFTA reporting. The system captures miles by jurisdiction, organizes fuel receipts, and generates ready-to-file reports each quarter. It also helps carriers stay organized for audits by keeping all IFTA data aligned and accessible.


When paired with compliance support from National Fleet Services, this software gives carriers the tools and guidance needed to reduce risk and stay ready year-round.


Need help simplifying IFTA tax reporting? Request a demo of DOTFocused today and see how National Fleet Services can help you stay compliant, reduce audit risk, and keep your operation moving.

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