April 5, 2026IFTA Compliance8 min read

IFTA Diesel Tax Rates by State 2026: Complete Jurisdiction Guide

Fuel tax rates vary wildly — from $0.18/gallon in Mississippi to $0.741 in Pennsylvania. Knowing these rates directly affects how much you owe or get back on your quarterly IFTA return.

Herman Armstrong

Founder, FleetCollect • Former fleet compliance manager with 8+ years experience in DOT regulations and driver qualification file management.

IFTA diesel tax rates spreadsheet showing state-by-state fuel tax calculations

Every quarter, trucking companies must file IFTA returns that account for fuel tax owed in each jurisdiction they traveled through. The tax rate in each state directly determines whether you owe money or receive a credit. This guide lists every current IFTA diesel tax rate for all 58 US and Canadian jurisdictions.

What you'll learn:

Q2 2026 diesel tax rates for all 49 US jurisdictions
Diesel tax rates for all 10 Canadian provinces
How the IFTA net tax formula works
Which states have the highest and lowest rates
How rate differences create refunds or balances owed
A worked example showing how rates affect your filing

US Diesel Tax Rates — All 49 IFTA Jurisdictions (Q2 2026)

The table below lists the current IFTA diesel fuel tax rate for every US jurisdiction. Rates are in US dollars per gallon. High rates ($0.600+) are highlighted in red; low rates ($0.195 and below) are highlighted in green.

Jurisdiction	Diesel Rate ($/gal)
Alabama	$0.290
Alaska	$0.088
Arizona	$0.260
Arkansas	$0.285
California	$1.090
Colorado	$0.205
Connecticut	$0.461
Delaware	$0.220
District of Columbia	$0.235
Florida	$0.360
Georgia	$0.359
Hawaii	$0.160
Idaho	$0.380
Illinois	$0.607
Indiana	$0.560
Iowa	$0.325
Kansas	$0.260
Kentucky	$0.246
Louisiana	$0.200
Maine	$0.312
Maryland	$0.418
Massachusetts	$0.260
Michigan	$0.280
Minnesota	$0.285
Mississippi	$0.180
Missouri	$0.195
Montana	$0.298
Nebraska	$0.278
Nevada	$0.270
New Hampshire	$0.222
New Jersey	$0.485
New Mexico	$0.210
New York	$0.321
North Carolina	$0.382
North Dakota	$0.230
Ohio	$0.385
Oklahoma	$0.190
Oregon	$0.380
Pennsylvania	$0.741
Rhode Island	$0.340
South Carolina	$0.280
South Dakota	$0.280
Tennessee	$0.270
Texas	$0.200
Utah	$0.345
Vermont	$0.320
Virginia	$0.296
Washington	$0.494
West Virginia	$0.357
Wisconsin	$0.329
Wyoming	$0.240

Rates shown are Q2 2026 (April - June). Rates are subject to change each quarter. Always verify with your base jurisdiction or IFTA Inc. before filing.

Canadian Province Diesel Tax Rates (Q2 2026)

Ten Canadian provinces participate in IFTA. Canadian rates are listed in Canadian dollars per liter (CAD/L). If you cross into Canada, these rates apply to miles driven in each province.

Province	Diesel Rate (CAD/L)
Alberta	$0.130
British Columbia	$0.277
Manitoba	$0.140
New Brunswick	$0.182
Newfoundland and Labrador	$0.165
Nova Scotia	$0.154
Ontario	$0.143
Prince Edward Island	$0.139
Quebec	$0.202
Saskatchewan	$0.150

How IFTA Tax Rates Work

IFTA uses a net tax formula to determine what you owe or are owed in each jurisdiction. Here is how it works:

Calculate your fleet MPG: Total miles driven across all jurisdictions divided by total gallons of fuel purchased.
Determine taxable gallons per state: Miles driven in each state divided by your fleet MPG gives you the taxable gallons for that state.
Calculate tax owed per state: Taxable gallons multiplied by that state's tax rate.
Subtract tax already paid: The fuel tax you paid at the pump in each state is credited against tax owed.
Net result: If you paid more tax at the pump than you owe, you get a credit. If you owe more than you paid, you owe additional tax.

The IFTA Net Tax Formula

Net Tax = (Miles in State / Fleet MPG) x State Tax Rate - Tax Paid at Pump in State

This calculation is performed for every jurisdiction you traveled through during the quarter. The totals from all jurisdictions are summed to determine your overall payment or refund.

Highest and Lowest Rate States

Highest IFTA Diesel Rates

California — $1.090/gal
Pennsylvania — $0.741/gal
Illinois — $0.607/gal
Indiana — $0.560/gal
Washington — $0.494/gal

Lowest IFTA Diesel Rates

Alaska — $0.088/gal
Hawaii — $0.160/gal
Mississippi — $0.180/gal
Oklahoma — $0.190/gal
Missouri — $0.195/gal

The difference between the highest and lowest US rates is staggering: California's $1.090 is over 12 times Alaska's $0.088. This means the same gallon of fuel consumed generates vastly different tax obligations depending on what state you are driving through.

How Rates Affect Your IFTA Refund

The key insight for IFTA filers is this: where you buy fuel matters as much as where you drive. The interplay between purchase location and driving location determines whether you get money back or owe more.

Buy fuel in a high-tax state, drive in low-tax states = refund. You paid a high tax rate at the pump but only owe the lower rate for miles driven elsewhere. The difference comes back as a credit.
Buy fuel in a low-tax state, drive in high-tax states = you owe. You paid a low rate at the pump but owe the higher rate for miles in those states. You must pay the difference.

Common Scenario

A carrier based in Pennsylvania ($0.741/gal) who buys most fuel in-state but drives significant miles through the Southeast (rates around $0.180-$0.290) will typically receive credits on their IFTA return, since they overpaid at the pump relative to what they owe in lower-rate states.

When Do IFTA Rates Change?

IFTA tax rates can change every quarter. Each jurisdiction independently sets its fuel tax rate, and changes typically take effect on the first day of each calendar quarter:

Q1: January 1
Q2: April 1
Q3: July 1
Q4: October 1

Not every state changes rates every quarter — many hold steady for years at a time. But some states (like Indiana, Kentucky, and Virginia) have variable-rate formulas tied to fuel prices, meaning their rates fluctuate more frequently.

IFTA Inc. publishes the official rate table before each quarter begins at iftach.org. Always use the rates that were in effect during the quarter you are filing for, not the current quarter's rates.

How to Use These Rates: A Worked Example

Let's walk through a simplified example to see how different tax rates create a net payment or refund.

Example: PA to TX Round Trip

Fleet MPG: 6.0
Miles in Pennsylvania: 500
Miles in Texas: 1,200
Fuel purchased in PA: 150 gallons (tax paid: 150 x $0.741 = $111.15)
Fuel purchased in TX: 100 gallons (tax paid: 100 x $0.200 = $20.00)

Step 1: Calculate taxable gallons per state

PA: 500 miles / 6.0 MPG = 83.33 taxable gallons
TX: 1,200 miles / 6.0 MPG = 200.00 taxable gallons

Step 2: Calculate tax owed per state

PA: 83.33 gal x $0.741 = $61.71 owed
TX: 200.00 gal x $0.200 = $40.00 owed

Step 3: Calculate net per state

PA: $61.71 owed - $111.15 paid = -$49.44 (credit)
TX: $40.00 owed - $20.00 paid = +$20.00 (owe)

Net result:

-$49.44 + $20.00 = -$29.44 refund. The carrier receives $29.44 back because they overpaid fuel tax in Pennsylvania relative to the low-tax miles driven in Texas.

Frequently Asked Questions

When do IFTA tax rates change?

IFTA tax rates can change quarterly. Each jurisdiction sets its own rate, and updates typically take effect at the beginning of each calendar quarter (January, April, July, October). Always verify rates before filing your return.

Which state has the highest IFTA diesel tax rate?

As of Q2 2026, California has the highest IFTA diesel tax rate at $1.090 per gallon. Pennsylvania is second highest at $0.741 per gallon, followed by Illinois at $0.607 per gallon.

Which state has the lowest IFTA diesel tax rate?

Alaska has the lowest IFTA diesel tax rate at $0.088 per gallon. Hawaii ($0.160) and Mississippi ($0.180) also have notably low rates.

Do Canadian provinces have different IFTA rates than US states?

Yes. Canadian IFTA rates are listed in Canadian dollars per liter, not US dollars per gallon. The 10 participating Canadian provinces each set their own rates. When filing IFTA, these rates are converted to a common basis for net tax calculations.

How do IFTA tax rates affect my refund or amount owed?

If you buy fuel in a high-tax state but drive most of your miles in low-tax states, you will likely receive a credit. Conversely, if you buy fuel in low-tax states but drive in high-tax states, you will owe additional tax. The difference between the tax paid at the pump and the tax owed based on miles driven determines your net refund or payment.

Where can I find the official IFTA tax rates?

Official IFTA tax rates are published by IFTA Inc. at iftach.org before each quarter. Your base jurisdiction's department of revenue or motor carrier division also publishes current rates. IFTA software like FleetCollect automatically uses the correct rates for each quarter.

Are IFTA rates different for gasoline vs diesel?

Yes. Most jurisdictions have different tax rates for diesel and gasoline. The rates listed in this guide are specifically for diesel fuel, which is what the vast majority of IFTA-qualified vehicles use. If you operate gasoline-powered vehicles, check your jurisdiction for the applicable gasoline rate.

Do some states charge IFTA surcharges on top of the base rate?

Yes. Some states like Indiana, Kentucky, and Virginia impose additional surcharges or fees on top of the base IFTA diesel tax rate. These surcharges are reported separately on the IFTA return and can change independently from the base rate.

Stop Looking Up Rates Manually

FleetCollect automatically tracks your miles by state, logs fuel purchases, and applies the correct tax rates for each quarter. Generate your IFTA return in minutes, not hours.

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