How to File IFTA: Complete Step-by-Step Guide for 2025

The International Fuel Tax Agreement (IFTA) requires trucking companies operating in multiple states or provinces to file quarterly fuel tax reports. If you're new to IFTA or want to streamline your process, this guide covers everything from basic requirements to advanced tips.

What is IFTA?

The International Fuel Tax Agreement (IFTA) is a tax collection agreement between 48 US states and 10 Canadian provinces. It simplifies the reporting and payment of fuel taxes for motor carriers that operate in multiple jurisdictions.

Without IFTA, a trucker driving from Texas to California would need to stop at each state border, purchase fuel permits, and file separate tax returns in each state. IFTA eliminates this by allowing carriers to:

• File one quarterly report with their base jurisdiction
• Have taxes distributed to all states traveled
• Pay or receive credits based on where fuel was purchased vs. consumed

Who Needs to File IFTA?

You need an IFTA license and must file quarterly if your vehicle:

• Is used, designed, or maintained for transporting persons or property
• Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds (11,797 kg), OR
• Has three or more axles regardless of weight, OR
• Is used in combination when the combined weight exceeds 26,000 pounds
• Travels in at least two IFTA member jurisdictions

IFTA Filing Deadlines 2025

IFTA returns are due quarterly, by the last day of the month following the quarter:

Step-by-Step: How to File IFTA

Step 1: Gather Your Data

Before you can file, you need to collect:

• Total miles driven in each state/province - From trip logs, GPS tracking, or odometer readings
• Total fuel purchased in each state/province - From fuel receipts or fuel card statements
• Vehicle information - Fleet MPG (miles per gallon)

Step 2: Calculate Your Fleet MPG

Your fleet MPG (miles per gallon) is crucial for IFTA calculations:

Step 3: Calculate Taxable Gallons Per State

For each state you drove in, calculate how many gallons you consumed:

Step 4: Determine Tax Due or Credit Per State

For each state, compare taxable gallons (consumed) to tax-paid gallons (purchased):

• If taxable gallons > tax-paid gallons: You owe tax to that state
• If tax-paid gallons > taxable gallons: You get a credit from that state

Step 5: Complete the IFTA Return Form

Your base jurisdiction provides the IFTA return form. You'll need to complete:

1. Carrier information and license number
2. Reporting period (quarter and year)
3. For each jurisdiction traveled:
   • Total miles
   • Taxable gallons
   • Tax-paid gallons
   • Net taxable gallons
   • Tax rate
   • Tax due or credit
4. Summary totals
5. Previous credits (if any)
6. Total amount due or refund

Step 6: Submit and Pay

Submit your return to your base jurisdiction by the deadline. Most states offer:

• Online filing - Usually the fastest option
• Mail - Send completed form with payment
• Third-party software - Services like FleetCollect can generate and help file returns

IFTA Tax Rates by State (Q4 2025)

Here are the current diesel fuel tax rates for major states:

View complete IFTA tax rate matrix →

Common IFTA Filing Mistakes to Avoid

How Software Makes IFTA Filing Easier

Manual IFTA filing typically takes 4-8 hours per quarter. IFTA software can reduce this to under 30 minutes by automating:

• Mileage tracking - GPS automatically logs miles by state
• Fuel logging - Digital receipt capture with location
• MPG calculation - Automatically computed from your data
• Tax rate lookup - Current rates automatically applied
• Report generation - Quarterly reports ready to file

IFTA Record Keeping Requirements

You must keep records for at least 4 years from the filing date. Required records include:

• Distance records showing routes of travel
• Fuel purchase receipts with date, location, gallons, and price
• Quarterly IFTA returns filed
• Payment records

What Happens in an IFTA Audit?

IFTA audits examine your records to verify accuracy. Auditors will compare:

• Reported miles vs. documented miles
• Fuel purchases vs. receipts
• Fleet MPG reasonability
• Tax calculations accuracy

If discrepancies are found, you may owe additional taxes plus penalties and interest. Accurate record-keeping and GPS tracking software are your best defenses.

Frequently Asked Questions

Do I need to file if I didn't travel to other states this quarter?

Yes, you must file a return every quarter as long as you hold an IFTA license, even if you didn't travel outside your base jurisdiction. Report zeros for states not traveled.

Can I file IFTA myself or do I need an accountant?

You can file yourself if you keep good records. Many owner-operators and small fleets file without professional help. IFTA software makes self-filing even easier.

What if I made a mistake on my return?

File an amended return as soon as you discover the error. Contact your base jurisdiction for their amendment process. It's better to self-report errors than have them discovered in an audit.

How do I handle fuel purchased with cash (no receipt)?

Without receipts, you cannot claim tax-paid credits for that fuel. Always get and keep receipts. If you frequently pay cash, consider switching to a fuel card for automatic documentation.