What is the International Fuel Tax Agreement (IFTA)?
What is the International Fuel Tax Agreement (IFTA)?
This article explains that the International Fuel Tax Agreement (IFTA) is a cooperative system among U.S. states and Canadian provinces designed to simplify how interstate trucking companies report and pay fuel taxes. Instead of filing separate tax reports in every jurisdiction they travel through, carriers obtain a single license in their “base” state and submit one quarterly report covering all travel. The base jurisdiction then distributes the appropriate taxes to each region based on miles driven and fuel used. IFTA reduces administrative burden, ensures taxes are paid where fuel is consumed (not just purchased), and streamlines compliance for fleets operating across multiple jurisdictions.
