IFTA is a lifesaver for truckers and fleets, cutting down the stress of fuel tax reporting. But what exactly is IFTA, and how does it make your job easier? Let’s break it down and show you how RouteMate can help simplify the process even more.
What is IFTA?
The International Fuel Tax Agreement (IFTA) is a deal between 48 U.S. states and 10 Canadian provinces. It allows trucking companies to handle fuel taxes with a single license instead of separate permits for each state or province.
Before IFTA, you’d have to stop at ports of entry to buy permits — costing you time and patience. Now, you just track your miles and fuel, file one form quarterly, and you’re good to go. Your home state does the math and splits the tax money with other states.
For trucking companies, this means fewer headaches and lower admin costs.
Who Needs IFTA?
Not every vehicle is IFTA-qualified. International Fuel Tax Agreement defines a qualified motor vehicle as a vehicle built and used to transport property or people. These motor vehicles must have three or more axles or two axles and a gross weight of over 26,000 pounds.
Additionally, these vehicles must operate in at least two states of the U.S. and/or Canadian provinces that are members of the International Fuel Tax Agreement. As we have mentioned, 48 contiguous states of the U.S. and all 10 provinces of Canada are members of the agreement. Alaska, Hawaii, and the District of Columbia are not members.
How does IFTA work?
Drivers are required to track how much fuel they use and how far they drive in each jurisdiction. The company reports this information quarterly, and member jurisdictions share the tax revenue accordingly. Here’s how it plays out:
- Track your miles and fuel: Keep a record of how far you drive and how much fuel you use in each state or province.
- File quarterly reports: Send in your IFTA report every quarter. Even if you didn’t drive, an IFTA report should be sent every quarter, no matter whether you haul and buy fuel or not.
- Keep your receipts: Save fuel receipts and detailed trip logs to avoid any audit trouble.
It’s simple on paper, but in reality, tracking everything manually can be a hassle. That’s where RouteMate comes in.
IFTA Quarters
To avoid penalties, you need to send your IFTA every quarter. Check the deadlines:
- Q1: April 30
- Q2: July 31
- Q3: October 31
- Q4: January 31
In case you need help with reporting, RouteMate is here for you.
Simplify IFTA with RouteMate
It can be difficult to track every mile a vehicle travels in each jurisdiction accurately. However, with RouteMate, fuel tax reporting is a breeze. Here are the top 3 reasons why you should automatize IFTA with RouteMate:
Simplified fuel tax reporting
RouteMate automates the calculation process for you. We keep all the necessary data for IFTA reports with our ELD devices, which eliminates human errors and ensures accurate reporting.
AI-based IFTA calculation
Even unplugged miles are logged and calculated, so your IFTA report is 100% accurate. The unplugged miles are added to the total distance and distance traveled in each state with our AI calculation solution.
Save days of administrative work
Why spend days filing reports when RouteMate can do it in minutes? Whether you’ve got one truck or a whole fleet, we make it easy.
Final Word
The International Fuel Tax Agreement is an important part of fleet compliance, along with the ELD mandate and Hours of Service management. Thankfully, this whole process can be simplified by using a fleet management solution to report on accurate GPS location and time in each location of fleet vehicles. As you are probably aware, paper records leave a lot of room for mistakes, such as missing paperwork, entry errors, late fillings, etc.
Make IFTA reporting easier – contact our sales team instantly and get rid of the administrative burden right now.
FAQ
What is IFTA?
The International Fuel Tax Agreement (IFTA) is a pact between the lower contiguous 48 states and the 10 Canadian provinces. This agreement allows inter-jurisdictional commercial motor carriers to use a single fuel tax license to report and pay fuel tax.
Why is IFTA important?
IFTA is important because it helps fleets stay compliant while saving everyone a great deal of time, money, and paperwork. In addition, the taxes are collected and paid so the states can use this money to improve highway conditions.
Which states are not included in the IFTA?
Alaska, Hawaii, and the District of Columbia are not included in the International Fuel Tax Agreement.
Who is IFTA qualified?
Commercial vehicles with three or more axles, or two axles and a gross weight over 26,000 pounds, used to transport goods or passengers are IFTA qualified.
Can RouteMate help with IFTA reports?
Absolutely. Route Mate simplifies the whole IFTA reporting process. It automates the calculation process, saves time, and offers reliable and accurate data regarding the miles driven.
