In trucking, IFTA stands for the International Fuel Tax Agreement, a cooperative agreement among the contiguous U.S. states and Canadian provinces. IFTA was created to simplify the reporting of fuel taxes for commercial vehicles that operate across multiple jurisdictions, replacing the need for separate fuel tax permits for each state or province.
Under IFTA, trucking companies report fuel taxes quarterly to their base jurisdiction—the state or province where the fleet is registered. This jurisdiction then redistributes the taxes to other states or provinces based on the number of miles driven and fuel consumed in each area. This ensures that taxes are fairly allocated to the regions where fuel is used.
To qualify for IFTA, vehicles must meet certain criteria, such as having two axles and a gross vehicle weight exceeding 26,000 pounds or having three or more axles regardless of weight. Carriers are required to maintain accurate records of fuel purchases and miles travelled in each jurisdiction.
IFTA compliance is critical for trucking companies to avoid penalties and maintain legal operations across state and provincial lines. TruckX’s fleet management solutions simplify IFTA reporting by automating mileage tracking, fuel data recording, and jurisdiction-specific calculations. By using TruckX, fleets can save time, reduce errors, and focus on their core operations while ensuring seamless compliance with IFTA requirements.
