IFTA Reporting: Step-by-Step Filing Guide for Truckers

What Is IFTA and Why It Matters

The International Fuel Tax Agreement, or IFTA, is a tax agreement among the 48 lower US states, the District of Columbia, and 10 Canadian provinces. ¹ It simplifies fuel tax reporting for carriers operating across multiple jurisdictions by allowing you to file a single quarterly return through your base state rather than filing separately in every state you travel through.

Filing requirements verified against current IFTA Inc. guidelines and state DOT resources.

Without IFTA, you would need to buy fuel tax permits for every state you enter -- a paperwork burden that would bury most small operations. Instead, IFTA lets your base state act as a clearinghouse. You report all your miles and fuel purchases on one return, and your base state handles distributing the taxes owed to each jurisdiction.

Who Must File IFTA

IFTA filing is required if you meet both of these conditions:

1. You operate a qualified motor vehicle. A qualified motor vehicle is any vehicle used, designed, or maintained for transporting persons or property that has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds, OR has three or more axles regardless of weight, OR is used in combination when the combined weight exceeds 26,000 pounds. ⁵

2. You travel in two or more IFTA member jurisdictions. ² If your truck never leaves your home state, you do not need IFTA. The moment you cross a state line with a qualified vehicle, IFTA applies.

Most owner operators and small fleet owners hauling freight across state lines meet both criteria. If you hold your own authority and run interstate, you almost certainly need an IFTA license.

Getting Your IFTA License and Decals

You obtain your IFTA license and decals through your base jurisdiction -- the state or province where your vehicles are registered or where you have an established place of business. The application process varies by state but generally requires:

• A completed IFTA application form
• Your USDOT number and MC number
• Proof of vehicle registration
• A filing fee (typically $5-$25 depending on the state)

Once approved, you receive an IFTA license and two decals per qualified vehicle. The decals must be displayed on both sides of the cab exterior. Your license and decals are valid for the calendar year and must be renewed annually, usually by December 31 for the following year.

IFTA Quarterly Filing Deadlines

IFTA returns are filed quarterly. The deadlines are consistent every year:

Quarter	Period Covered	Filing Deadline
Q1	January 1 - March 31	April 30
Q2	April 1 - June 30	July 31
Q3	July 1 - September 30	October 31
Q4	October 1 - December 31	January 31

You must file a return for every quarter even if you did not operate during that period. A zero-mile, zero-gallon return is perfectly valid and keeps you in compliance. Failing to file -- even when you owe nothing -- triggers late penalties.

Most states now offer electronic filing through their DOT or Department of Revenue websites, and many require it. Electronic filing is faster, reduces errors, and gives you an immediate confirmation of receipt.

Step-by-Step: How to File Your IFTA Return

Filing IFTA is a straightforward process once you understand the mechanics. Here is exactly how to complete your quarterly return.

Step 1: Gather Your Mileage Records

You need total miles driven in each IFTA jurisdiction during the quarter. Acceptable mileage sources include:

• Odometer readings at each state line crossing
• ELD/GPS data with jurisdictional mile breakdowns
• Trip sheets or driver logs showing origin, destination, and route
• Toll records that confirm travel through specific states
• PC Miler or similar routing software for calculated distances

Record your beginning and ending odometer readings for each vehicle at the start and end of the quarter. The difference is your total fleet miles. Then break those total miles down by jurisdiction.

Pro tip: Many ELD platforms now offer IFTA reporting modules that automatically calculate jurisdictional miles from GPS breadcrumb data. If your ELD supports this feature, use it -- but cross-check against odometer readings quarterly to catch any discrepancies.

Step 2: Compile Your Fuel Purchase Records

Gather every fuel receipt and fuel card statement for the quarter. For each purchase, you need:

Required Data Point	Why It Matters
Date of purchase	Confirms the purchase falls within the filing quarter
Seller name and location (city, state)	Assigns the purchase to the correct jurisdiction
Number of gallons	Determines fuel purchased per jurisdiction
Fuel type (diesel, gasoline, etc.)	Different fuel types may have different tax rates
Price per gallon or total amount	Required for audit documentation
Vehicle unit number	Links the purchase to a specific qualified vehicle

Keep every receipt. IFTA requires you to retain fuel records for four years from the filing date or the due date of the return, whichever is later. ³ State auditors will request these records if you are selected for an audit.

Step 3: Calculate Your Fleet MPG

This is the foundation of the IFTA calculation. Your fleet miles per gallon (MPG) determines how fuel consumption is allocated across jurisdictions.

Fleet MPG = Total Miles Driven (all jurisdictions) / Total Gallons Purchased (all jurisdictions)

For example, if you drove 30,000 total miles during the quarter and purchased 5,000 gallons of diesel:

Fleet MPG = 30,000 / 5,000 = 6.0 MPG

This single MPG figure is used to calculate fuel consumption in every jurisdiction. IFTA assumes your truck gets the same mileage everywhere, regardless of terrain, weather, or load weight.

Step 4: Allocate Fuel Consumption by Jurisdiction

For each state or province you traveled through, calculate the gallons consumed:

Gallons Consumed in Jurisdiction = Miles in That Jurisdiction / Fleet MPG

Continuing the example above with 6.0 MPG:

Jurisdiction	Miles Driven	Gallons Consumed (Miles / 6.0 MPG)	Gallons Purchased	Net Gallons (Purchased - Consumed)
Texas	12,000	2,000	2,800	+800 (credit)
Oklahoma	6,000	1,000	400	-600 (tax owed)
Kansas	4,500	750	800	+50 (credit)
Missouri	4,500	750	600	-150 (tax owed)
Arkansas	3,000	500	400	-100 (tax owed)
Totals	30,000	5,000	5,000	0

When the net gallons column is negative, you consumed more fuel in that jurisdiction than you purchased there, so you owe that state's fuel tax on the shortfall. When positive, you purchased more than you consumed, so you receive a credit.

Step 5: Apply Tax Rates and Calculate Amount Owed

Each jurisdiction sets its own fuel tax rate. ⁶ Your IFTA return form includes the current rates, and your base state's filing system will have them built in if you file electronically.

Multiply the net gallons for each jurisdiction by that state's tax rate:

• Negative net gallons (consumed more than purchased): You owe tax. Multiply the deficit gallons by the tax rate.
• Positive net gallons (purchased more than consumed): You get a credit. Multiply the surplus gallons by the tax rate.

The credits and debits across all jurisdictions are netted together. If the total comes out negative, you owe a payment. If positive, you receive a refund or a credit toward future filings.

Step 6: Submit Your Return and Payment

File through your base state's online portal or by mailing the paper return. If you owe money, payment is typically due at the same time as the return. Most states accept electronic payment through ACH transfer or credit card.

After filing, keep a copy of the submitted return and the confirmation receipt with your records.

Tracking Miles and Fuel: Best Practices

Accurate record-keeping throughout the quarter makes filing day simple. Poor records make it a nightmare -- and put you at risk during audits.

Mileage Tracking Methods

The FMCSA and IFTA Inc. accept several methods for documenting jurisdictional miles: ³

• Individual vehicle distance records (IVDRs): The most audit-friendly method. Record the beginning and ending odometer reading for each trip, along with the route taken and state line crossings.
• ELD/GPS tracking: Increasingly common and highly accurate. GPS breadcrumb data provides a verifiable record of exactly where your truck traveled and how many miles accumulated in each state.
• Routing software calculations: Tools like PC Miler can calculate jurisdictional miles based on origin-destination pairs. Auditors accept these calculations, especially when paired with supporting documentation like fuel receipts or toll records.

Whichever method you use, maintain it consistently. Switching methods mid-quarter or using different methods for different trips creates confusion during audits.

Fuel Purchase Documentation

Your fuel records serve two purposes: they prove how many gallons you purchased in each jurisdiction, and they validate the total gallons figure used in your MPG calculation. Every gallon must be accounted for.

The bare minimum for each fuel purchase:

• Date
• Seller name and address (city and state)
• Number of gallons
• Fuel type
• Unit number of vehicle fueled

Missing any of these data points on a receipt can cause that purchase to be disallowed during an audit -- meaning you lose the credit for fuel purchased in that state.

Common IFTA Mistakes and Penalties

IFTA audits catch the same mistakes over and over. Avoid these and you will stay out of trouble.

Mistake 1: Sloppy or Missing Records

The number one audit finding is incomplete documentation. Missing fuel receipts, gaps in mileage records, or illegible trip sheets can result in the auditor recalculating your returns using their own estimates -- which rarely work in your favor.

Mistake 2: Forgetting Deadhead and Empty Miles

Every mile your qualified vehicle travels counts toward IFTA, not just loaded miles. Deadhead runs, bobtail moves, trips to the shop, and personal conveyance in a CMV all generate jurisdictional miles that must be reported.

Mistake 3: Rounding or Estimating Mileage

Guessing that you drove "about 3,000 miles in Ohio" is a red flag for auditors. Use actual odometer readings, GPS data, or routing software. Estimates invite recalculation.

Mistake 4: Missing the Filing Deadline

Even if you owe nothing, a late return triggers penalties.

Penalty Type	Typical Range	Details
Late filing penalty	$50 - $500 per quarter	Varies by base jurisdiction
Interest on taxes owed	0.4% - 1% per month	Accrues from the original due date
Percentage-based penalty	10% - 25% of tax due	Some states add this on top of the flat fee
License revocation	After repeated non-filing	Lose your IFTA license entirely

A revoked IFTA license means you cannot legally operate across state lines. Getting it reinstated requires paying all back taxes, penalties, and interest -- plus reapplying from scratch.

Mistake 5: Not Filing Zero Returns

If your trucks sat idle for a quarter, you still must file. A zero return takes five minutes and costs nothing. Skipping it creates a compliance gap that cascades into penalties and potential license issues.

How Fuel Cards Simplify IFTA Reporting

One of the most overlooked advantages of using a fleet fuel card is automated IFTA data collection. The right fuel card eliminates most of the manual record-keeping headaches described above.

Automatic State-by-State Fuel Tracking

When you swipe a fuel card at the pump, the transaction automatically records the date, location (city and state), gallons, fuel type, price, and unit number. Every data point an IFTA auditor wants is captured electronically without you writing anything down.

Cards from providers like TCS Fuel Card, RTS Fuel Card, and Comdata are specifically designed for the trucking industry and include IFTA reporting as a core feature. They categorize every fuel purchase by jurisdiction and generate exportable reports at the end of each quarter.

IFTA-Ready Quarterly Reports

Most trucking fuel cards let you download or print a quarterly fuel summary that breaks out total gallons purchased by state -- exactly the format your IFTA return requires. Instead of sorting through a shoebox of paper receipts, you log into your fuel card portal, pull the report, and transfer the numbers to your return.

Some fuel card platforms go further by integrating directly with IFTA filing software, pre-populating the fuel purchase side of your return automatically.

For a deeper look at how to choose and use fuel cards strategically, read our fuel card strategy guide. And if you want to see the actual dollar savings different fuel cards offer based on your monthly gallons and routes, run the numbers through our fuel card savings calculator.

Audit-Ready Documentation

During an IFTA audit, the auditor will request fuel purchase records going back up to four years. Fuel card records stored electronically in your card provider's portal are far easier to produce than boxes of faded paper receipts. Electronic records are also harder to dispute -- they carry timestamps, GPS coordinates, and transaction IDs that paper receipts cannot match.

If you use a fuel card for 100% of your fuel purchases, your audit preparation is essentially done before it starts. The card provider's records serve as a complete, verifiable fuel purchase history for every quarter.

Software Tools That Simplify IFTA

Beyond fuel cards, several software tools can reduce IFTA filing from a multi-hour chore to a quick review-and-submit process.

ELD Platforms with IFTA Modules

Many ELD providers now include IFTA reporting as a built-in feature or add-on module. These tools use your truck's GPS data to automatically calculate jurisdictional miles, eliminating the need for manual trip sheets or odometer logs.

Popular ELD platforms with IFTA capabilities include:

• Motive (formerly KeepTruckin): Automated IFTA mileage reports by jurisdiction with exportable data
• Samsara: GPS-based jurisdictional mile tracking with quarterly report generation
• ELD Rider / BigRoad: IFTA-specific reporting tools included in their driver apps

The key advantage of ELD-based IFTA reporting is that mileage tracking happens passively. You do not need to remember to log state line crossings or record odometer readings -- the GPS handles it continuously.

Dedicated IFTA Filing Software

Standalone IFTA software handles the calculation and filing process. You enter your mileage and fuel data (or import it from your ELD and fuel card), and the software calculates your tax liability, generates the return, and in some cases files electronically on your behalf.

Accountants and Tax Services

If IFTA feels overwhelming or you want professional assurance that your filings are accurate, many trucking-focused accountants and bookkeeping services handle IFTA as part of their quarterly tax work. The cost is typically $50-$150 per quarter per vehicle -- a reasonable price for peace of mind, especially during your first year of filing.

For small fleets with 5 or more trucks, outsourcing IFTA can free up hours of administrative time each quarter that you can spend dispatching, driving, or managing your operation.

IFTA Audit Survival Guide

IFTA audits are conducted by your base state and typically cover a three to four year lookback period. ³ Being selected for an audit does not mean you did anything wrong -- audits are routine and random. But preparation determines whether the experience is painless or costly.

What Auditors Look For

• Mileage records that match your reported jurisdictional miles
• Fuel purchase records with all required data points for every transaction
• Consistency between your reported MPG and your actual fuel economy
• Total miles that reconcile between your IFTA return, odometer readings, and supporting documents

How to Prepare

Maintain organized records throughout the year rather than scrambling when an audit notice arrives. Keep your fuel receipts or fuel card statements, mileage logs, and filed IFTA returns in a dedicated folder (physical or digital) for each quarter. If your records are clean and consistent, most audits are completed without any adjustments.

If the auditor finds discrepancies, they will recalculate your returns. Any additional tax owed will include interest from the original due date. Significant underreporting can also result in penalties.

Take Control of Your IFTA Compliance

IFTA reporting is one of those tasks that feels intimidating until you do it a few times. The calculation is simple math. The deadlines are predictable. And the tools available today -- from fuel cards that auto-track purchases by state to ELD platforms that calculate jurisdictional miles from GPS data -- make the process far easier than it was even five years ago.

The biggest risk is not the complexity of IFTA itself. It is neglecting the basics: tracking your miles, keeping your fuel receipts, and filing on time every quarter. Get those three things right and IFTA becomes a routine 30-minute task four times a year instead of a source of stress and penalties.

If you are still managing fuel purchases with a personal credit card or cash, switching to a trucking-specific fuel card is the single most impactful step you can take for IFTA compliance -- and for your bottom line. The right card pays for itself through per-gallon discounts while simultaneously generating the IFTA-ready reports you need each quarter.

Compare fuel cards with IFTA integration to find the best option for your operation and routes.