If you operate a trucking business that crosses state lines, you’ve probably heard of the International Fuel Tax Agreement (IFTA). But what exactly is IFTA, and do you need it for your fleet? Understanding IFTA is crucial for staying compliant, avoiding fines, and keeping your business running smoothly.
In this guide, we’ll break down what IFTA means, who needs to register for it, and how you can manage the requirements more efficiently.
What Is IFTA?
IFTA stands for the International Fuel Tax Agreement, which is an agreement between the lower 48 U.S. states and Canadian provinces to simplify the reporting of fuel use by motor carriers operating in multiple jurisdictions. Instead of filing fuel taxes separately in each state or province you travel through, IFTA lets you file a single quarterly fuel tax report through your base jurisdiction.
Your base jurisdiction (usually the state where your trucking business is registered) then handles distributing the taxes to the other states or provinces where you operated.
In simple terms, IFTA streamlines fuel tax reporting, saving carriers time and paperwork while ensuring proper fuel tax allocation.
Who Needs to Register for IFTA?
You are generally required to register for IFTA if your commercial vehicle meets these criteria:
- Travels in more than one member jurisdiction (e.g., multiple states)
- Has two axles and a gross vehicle weight over 26,000 pounds, or
- Has three or more axles, regardless of weight
If your truck stays within a single state and does not meet these thresholds, you may not need IFTA credentials. But for most interstate trucking businesses, IFTA registration is a must.
What Happens If You Don’t Comply with IFTA?
Operating across state lines without IFTA credentials can expose your trucking business to significant penalties, citations, and even the risk of being shut down. Carriers caught without proper IFTA licensing or decals can face:
- Fines and late fees
- Vehicle impoundments
- Audits and investigations
- Delays in operations
Keeping your IFTA registration current helps you avoid these issues and ensures your trucks stay on the road legally.
How to Register for IFTA
To register for IFTA, you’ll apply through your base jurisdiction (the state where your trucking business is registered). You’ll receive an IFTA license and IFTA decals for your qualifying vehicles. From there, you must file quarterly fuel tax reports, documenting fuel purchases and miles traveled in each jurisdiction.
Sounds complicated? It can be but you don’t have to do it alone.
Operating Authority specializes in helping trucking businesses like yours stay compliant with IFTA and other required registrations. We handle the paperwork so you can focus on running your business.
How Operating Authority and Logistec/TTS Can Help
Navigating IFTA requirements doesn’t have to be a headache. Through Logistec/TTS, you can get expert help managing your IFTA filings, decals, and quarterly reports. Our team takes the paperwork off your plate so you can focus on driving your business forward.
Logistec/TTS offers affordable pricing at $40 per truck per month for fleets with five or fewer vehicles, with discounted rates available for larger fleets. Setting up service is simple — just complete our easy online IFTA Service Request Form and a friendly, knowledgeable consultant will reach out to help get your account set up.