The International Fuel Tax Agreement lets a carrier file one fuel tax return for every member state and province instead of one in each. The price is record keeping: every mile and every gallon, by jurisdiction, every quarter. This log does the arithmetic so you can check your numbers before you file.
How it is calculated
- Total miles and total gallons for the quarter, across every state you ran.
- Fleet MPG = total miles ÷ total gallons bought.
- Taxable gallons in each state = miles in that state ÷ fleet MPG.
- Net taxable gallons = taxable gallons − gallons bought in that state.
A positive net means you burned more fuel in that state than you bought there, so you owe its tax on the difference. A negative net is a credit. The return balances the two across states, using each state's rate for that quarter.
A worked example
- Texas: 1,180 mi, 210 gal bought
- -49.2 gal
- Oklahoma: 420 mi, none bought
- +57.2 gal
- Kansas: 380 mi, 95 gal bought
- -43.2 gal
- Missouri: 260 mi, none bought
- +35.4 gal
- 2,240 mi ÷ 305 gal
- 7.34 MPG
Fuel bought in Texas and Kansas covers more than the truck burned there, so those states show credits. Oklahoma and Missouri got miles but no fuel purchases, so tax is owed there. Whether the quarter ends with a payment or a refund depends on each state's rate.
That's also why buying fuel in the right states saves money. See where on your route with the where to fuel calculator.
IFTA mileage tracking: what to keep
| Record | What it should show |
|---|---|
| Trip log | Date, start and end points, route, miles by state, unit number |
| Fuel receipts | Date, seller and address, gallons, fuel type, price, unit number |
| Odometer or ELD data | Readings that back up the trip miles |
Keep records for the period your base state requires, usually four years. The full rules are in the IFTA Articles of Agreement and Procedures Manual.
Getting good numbers in
- Log state-line crossings as they happen, or pull them from your ELD or a trailer GPS tracker report.
- Enter every fuel receipt, including small top-offs. Missing gallons lower your MPG and raise your taxable gallons.
- Power only and drayage trucks count deadhead and bobtail miles too. Every mile on a qualified vehicle goes on the return.
Working out what those miles earn? The rate per mile calculator and power only rates per mile help there, and dispatch cost shows what dispatch adds.
This log is a worksheet, not a filed return. Check the totals against your ELD and receipts, and file through your base jurisdiction.
SOURCES