IFTA shares fuel taxes across states.

Do You Qualify for IFTA?

The International Fuel Tax Agreement (IFTA) is an agreement among US states and Canadian provinces to simplify fuel tax filings. It makes fuel tax licensing and reporting requirements for interstate motor carriers easier. In essence, this program benefits carriers by consolidating licensing and reporting requirements through their base (home) state.

So, in order to qualify for IFTA, you must have a vehicle that transports people or property for compensation. This vehicle needs to meet at least one of the following conditions:

  • has three or more axles;
  • has two axles and a gross vehicle or registered gross vehicle weight of more than 26,000 pounds or 11,797 kilograms;
  • used in a combination that has a registered gross vehicle weight of 26,000 pounds or more.

Vehicles that are used for recreational purposes do not qualify for IFTA. However, a vehicle that is used for a business operation is not considered recreational. Any vehicle that you use for business purposes and that meets one of the above criteria qualifies for IFTA.

Are IFTA Filings the Only Way to Pay My Fuel Taxes?

If you qualify for IFTA but don’t want to register, you must get a fuel tax permit from each member state or province every time you travel into one. Fuel tax permits are a good option if you are usually an intrastate trucker. The permits are cheaper than IFTA registration, but after a few trips they quickly add up. Therefore, it’s best for Interstate truckers to get IFTA registration.

If you’re looking to become an interstate trucker, you’ll need to make a lot of filings to get your business off the ground. SafeLine Truck Insurance can set you up with the right insurance coverage and DOT filings to bring your business into compliance.

If you have any questions about IFTA Filings, contact us today and we’ll help answer your questions!