IFTA Reporting: A Step-by-Step Guide

If your fleet operates across state lines, you’re likely required to file IFTA reports each quarter. The International Fuel Tax Agreement (IFTA) was created to simplify the way companies report and pay fuel taxes, but that doesn’t mean the process is always straightforward. Between tracking miles, organizing fuel purchase data, and meeting quarterly deadlines, it can be challenging to stay compliant, especially if you’re doing it all manually.

This guide walks you through IFTA reporting from start to finish. You’ll learn which companies need to file, what information to gather, how to complete each step of the process, and where to find your state’s filing requirements. By the end, you’ll know exactly what to do to meet IFTA deadlines, avoid costly penalties, and save time with the right tools and reports.

Table of Contents

• What is IFTA reporting?
• Why was IFTA created?
• Who has to file IFTA reports?
• IFTA reporting due dates 2025
• How to file an IFTA report: step-by-step
• IFTA reporting frequently asked questions
• State IFTA reporting websites and filing options
• Get free IFTA fuel reports with P-Fleet
  
  

What Is IFTA Reporting?

The International Fuel Tax Agreement is a cooperative agreement that was made between 48 US states and 10 Canadian provinces. This regulation allows carriers to pay their fuel taxes across states and jurisdictions, using a fuel tax license. Members of the IFTA cooperative act together to collect and administer all taxes related to fuel usage. With IFTA, a carrier is only required to file one tax report that covers all jurisdictions. Currently, only two states, Alaska and Hawaii, are not members of IFTA.  Northwest Territories, Nunavut and Yukon Territory are the three provinces in Canada that are also not members.

Why Was IFTA Created?

To better understand IFTA, it is important to know why it was created. Before IFTA was created, truckers had the laborious task of obtaining a fuel permit for every single state they entered since each state had its own tax system. Truckers who traveled across the country often lost valuable time, paid fees, and burned more fuel.

Fleet owners and managers also had to file fuel tax reports in every state. They would spend countless hours performing clerical work to ensure they met the demands of the law, inconsistencies with rules, filing periods, and reporting requirements. With IFTA in place, fleets can now file one IFTA report per quarter with their base jurisdiction and IFTA works out the tax distributions among member states. It has been estimated to save trucking fleets millions of dollars each year in administrative costs alone.

Who Has to File IFTA Reports?

IFTA Qualified Company

A company needs an IFTA license if it meets meet all three of the following conditions:

• They are headquartered in an IFTA member state.
• They operate across more than one member state.
• They operate IFTA qualifying vehicles.

IFTA Qualified Vehicle

An IFTA qualifying vehicle is one that is used to transport people or property and matches one of the following descriptions:

• Has two axles and a gross weight over 26,000 pounds or 11,797 kilograms.
• Has three or more axles regardless of its weight.
• Is used in combination, when the weight of such combination exceeds 26,000 pounds or 11,797 kilograms gross weight.

What Are the IFTA Reporting Requirements?

Register with Your Base Jurisdiction

If a fleet is required to get an IFTA license, they will need to fill out the application in their base jurisdiction. There is some basic information that is required for obtaining an IFTA license, including the following:

• Registered business name
• Mailing address
• Federal business number
• USDOT number

The IFTA license application can be downloaded online. Some jurisdictions require these forms to be mailed while others allow delivery by fax or through a taxpayer services office. Once the IFTA application has been processed, trucking fleets can be given a temporary license while they are waiting for their permanent license and decals to come in the mail.

File Quarterly IFTA Reports with Your Base Jurisdiction

You must file IFTA reports every quarter for all qualifying vehicles and pay the taxes due through your base jurisdiction. Find your state’s IFTA website for detailed information on the specific requirements that apply in your state.

IFTA Reporting Due Dates 2025

Here are the IFTA reporting dates for 2025. It is important to note that filing a return late will result in late fees.

How to File an IFTA Report: Step-by-Step

For trucking fleets to calculate their IFTA reporting correctly, they will need to follow these seven steps for all IFTA qualified vehicles:

1. See if your state's IFTA form does the calculations for you (if it does, skip 2-7)
2. Track and calculate total taxable miles driven in each jurisdiction
3. Add the number of gallons of fuel purchased in each jurisdiction
4. Calculate the average miles per gallon for the quarter
5. Calculate the gallons of fuel consumed in each jurisdiction
6. Calculate the fuel tax owed or refund amount for each jurisdiction
7. Calculate the total IFTA tax owed or refund amount
   
   

Step 1: See if Your State's IFTA Form Does the Calculations for You (If It Does, Skip 2-7)

Before you start manually calculating your IFTA report, check if your state offers an online IFTA filing form. Many states provide digital filing tools that automatically calculate your totals, saving you time, reducing errors, and making the process much easier. If your state does, you just need to enter the following information and you can skip steps 2-7:

• Total miles driven
• Total taxable miles driven in each state
• Number of gallons purchased in each state

To gather this information, many fleets use a combination of fleet management software and a fuel card with IFTA reporting capabilities. An ELD (electronic logging device) or telematics system can generate a simple report showing total miles driven in each jurisdiction, while your fuel card can supply a summary of all fuel purchased by IFTA qualified vehicles by jurisdiction. Together, these two reports give you everything you need to complete your state’s online IFTA filing form.

Step 2: Track and Calculate Total Taxable Miles Driven in Each Jurisdiction

GPS or ELD software can track this for a fleet and provide a simple report that summarizes the necessary information. For fleets tracking this manually, this can be time consuming if they do not have a good process for recording mileage reports. Fleets must be extremely organized or they could find it problematic to calculate the number of miles for each state and be subject to an IFTA audit. Drivers must document their odometer readings each time they cross a state line. Failure to do so could make calculating the miles driven in each state very difficult, if not impossible.

Using the odometer readings at each state line, they can calculate the miles driven in that state. This must be completed for all IFTA vehicles and jurisdictions. While taxable miles are usually the same as the total miles driven, a few jurisdictions allow for mileage exceptions. Some jurisdictions allow for fuel trip permit miles to be deducted from the total.

Step 3: Add the Number of Gallons of Fuel Purchased in Each Jurisdiction

Fleets will need to know the total gallons of fuel that were purchased in each jurisdiction. It is important to note that drivers must submit the original receipts or a qualified fuel card invoice for their fuel purchases. These documents must contain the following pieces of information:

• Date of the fuel purchase
• Seller’s name and location
• Type of fuel that was purchased
• Vehicle’s plate number
• Number of gallons of fuel purchased
• Price for each gallon
• Truck driver’s name

Fleets need to be careful to ensure they include all fuel purchases for the quarter. This is one of the most important pieces of information, and omissions and mistakes can be costly. Some fuel card companies, like P-Fleet, will provide their customers with a free IFTA filing fuel report that details and summarizes all fuel purchases by vehicle by state to simplify this process.

Step 4: Calculate the Average Miles Per Gallon for the Quarter

This calculation is fairly simple since the Total Miles Driven in step 1 and the Total Gallons Purchased in step 2 have been determined:

• Average Miles Per Gallon = Total Miles Driven ÷ Total Gallons Purchased

For example, if a fleet drove 25,000 miles and purchased a total of 5,000 gallons of fuel, then their average miles per gallon is 5.00 (25,000 ÷ 5,000 = 5.00 mpg). It is important to note that the miles per gallon should be rounded to two decimal points.

Step 5: Calculate the Gallons of Fuel Consumed in Each Jurisdiction

Determine the number of gallons consumed in each jurisdiction:

• Fuel Consumed in the State = Total Miles Driven in the State ÷ Average Fuel Mileage

The above formula must be used for each state or province that the fleet operated in during the quarter.

Step 6: Calculate the Fuel Tax Owed or Refund Amount for Each Jurisdiction

The amount of fuel tax the fleet owes or is owed by each jurisdiction is calculated by the following formulas:

• Net Taxable Gallons (may be a negative number) = Gallons Consumed – Gallons Purchased
• Tax Owed or Refund Amount = Net Taxable Gallons x Tax Rate

If a jurisdiction that was travelled in has a fuel tax surcharge, then they must calculate the additional tax owed. Since these surcharges are not paid at the pump, they owe the tax on Gallons Consumed:

• Surcharge Tax Owed = Gallons Consumed x Surcharge Rate

Most IFTA Reporting will require inclusion of the Surcharge Calculation on a separate line of the fuel tax report. The fuel tax a fleet owes is dependent on the current rates for each quarter. This information can be found on the International Fuel Tax Agreement website. These rates are subject to change until the next quarterly due date, so there is no need to perform this calculation until the quarter is over and the filing is due.

Step 7: Calculate the Total IFTA Tax Owed or Refund Amount

Add all the Fuel Tax Owed and Refund Amounts from each jurisdiction in step 5 to calculate the Total Amount Owed or Refund Amount for your IFTA reporting return.

Following the steps in this IFTA reporting guide will help fleet owners and managers better understand what is involved with obtaining a license and what needs to be included when filing quarterly returns. When in doubt, visit the IFTA website for more detailed information, including the tax rates for each quarter.

IFTA Reporting Frequently Asked Questions

• What is the penalty for filing your IFTA report after the due date? Late payments are subject to a $50 penalty or 10% of taxes owed, whichever is greater. Late filings are also subject to a daily interest rate which changes periodically.
• How do I file an IFTA report? Some jurisdictions have online filing requirements while others allow for mailed returns. If the return is filed electronically, then it is considered received on the date it was submitted. If the return is filed by mail, then it is considered received by the postmark date.
• What if a fleet only operated in a single state for the quarter? They still must file a quarterly IFTA report for that quarter.
• What are the alternatives to registering for an IFTA license? Fleets can purchase fuel trip permits to travel through member jurisdictions.
• When do IFTA decals expire? Decals expire on December 31 of each year, but there is a two-month grace period that extends into the next year.
• Does DEF fuel need to be reported for IFTA? No, DEF does not need to be reported for IFTA because DEF is not considered a fuel used to propel a qualified vehicle, it’s classified as an emission control additive.
• Does reefer fuel need to be reported for IFTA? No, reefer fuel does not need to be reported for IFTA because it isn’t used to propel a qualified vehicle, it’s used to power the refrigeration unit.

State IFTA Reporting Websites and Filing Options

Get Free IFTA Fuel Reports with P-Fleet

With P-Fleet's Voyager and CFN fuel cards you'll get free IFTA fuel reporting. We'll give you a report that lists all diesel transactions by state and summarizes the total diesel gallons purchased in each state for the quarter. Then all you have to do is get your mileage information from your telematics or ELD software to file your IFTA report. You can apply online for a fuel card to get started, or take a self-guided tour of P-Fleet’s fuel card portal to see how our tools make fuel reporting easier.