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What Is IFTA?

Fuel tax agreement. A plain-English trucking glossary entry for owner operators and small fleets.

IFTA: The International Fuel Tax Agreement (IFTA) is a program that lets interstate carriers report and pay fuel taxes to their base jurisdiction, which then shares the taxes among the states where the truck traveled.

Why it matters to owner operators

You file quarterly returns showing miles and fuel by state and display IFTA decals on your truck. Good mileage and fuel records make filing much easier.

Example

A carrier totals miles driven in each state and the gallons bought, then files a quarterly return to settle fuel tax.

Free tool: Try our IFTA Tax Calculator to put this into numbers.

Related terms

Compliance & Safety: Getting set up and staying compliant keeps your truck earning. We help new carriers with broker setup packets and certificates of insurance. Talk to our dispatch team or browse the full trucking glossary.

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