IFTA filing guide: what carriers need to know for Q1 2026

The first quarter of 2026 is coming to an end, and that means only one thing for carriers: it’s time to file the International Fuel Tax Agreement (IFTA) report.

The IFTA is a fundamental component of the road transportation industry, with origins dating back to 1933. It is a coordination agreement among U.S. states (except Alaska and Hawaii) and Canadian provinces, designed to simplify how commercial carriers manage fuel taxes for their interstate operations.

This tax is filed quarterly, meaning four times a year. The first quarter of 2026 ends in March, so the corresponding return must be submitted no later than April 30, 2026.

If you still have questions about the IFTA process, below is a brief guide designed for all carriers.

International Fuel Tax Agreement (IFTA)

The IFTA can be described as a simplified fuel tax reporting program created to assist carriers operating in more than one state and across Canadian provinces.

In general, the IFTA consists of five key phases that every carrier should understand:

1. Registration
2. Fuel and mileage tracking
3. Quarterly filing
4. Tax calculation
5. Tax payment/refund

Before beginning the filing process, carriers must apply for IFTA registration in their base jurisdiction—that is, where their business is located. Once registered, they will receive an IFTA license, allowing them to proceed with the next steps.

During the quarterly period, carriers must keep track of fuel purchases in each jurisdiction (type, quantity, and cost), as well as the miles traveled by drivers across different jurisdictions. This can be done using GPS, electronic logging devices (ELDs), route sheets, or toll records as supporting documentation.

Once they have their license and the necessary information, carriers can proceed with quarterly filing. At this stage, they submit a single fuel tax return that combines total fuel consumption and miles traveled across all jurisdictions during the quarter. To do this, they must calculate the applicable taxes based on fuel consumed and distance traveled in each jurisdiction.

Finally, the taxpayer submits the payment to their base jurisdiction, which is responsible for distributing the appropriate amounts to each participating state or province.

Who must file IFTA?

Carriers operating in two or more jurisdictions must file IFTA if they use vehicles that meet any of the following criteria:

• Two-axle vehicles with a gross vehicle weight (GVW) exceeding 26,000 pounds (11,797 kg)
• Three-axle vehicles, regardless of weight
• Combination vehicles with a combined weight exceeding 26,000 pounds (11,797 kg)

It is important to note that this applies only to interstate vehicles. Intrastate vehicles—those operating exclusively within a single state or province—are not required to register under IFTA.

What documentation is required for IFTA?

To file your return, you must gather the following information for the period from January through March 2026:

1. Mileage by state or province – Total miles traveled by each qualified vehicle in each IFTA jurisdiction, tracked using GPS, ELDs, route sheets, or toll records as supporting documentation.
2. Fuel purchases by state or province – All fuel purchases must be supported by receipts showing the purchase date, seller’s name and address, number of gallons purchased, fuel type, total cost or price per gallon, vehicle unit number, and company or driver name.
3. Fleet fuel consumption data – Your fleet’s fuel efficiency (MPG) is the basis for all IFTA calculations. Use the following formula:

Taxable gallons = Miles traveled in the state ÷ Fleet fuel efficiency (MPG)

Additional Questions

Do you need to file if there was no activity in the first quarter of 2026?

Yes. You must file a zero return for each quarter in which you hold an active IFTA license, even if there was no activity. Failure to do so will result in penalties.

What happens if an error is discovered after filing?

In such cases, you must submit an amended return to the appropriate jurisdiction as soon as possible. Contact your base jurisdiction to learn about its specific amendment process.

How long must records be kept?

IFTA regulations require that all supporting records be retained for four years from the due date of the return. For this quarter, records must be kept until April 30, 2030.

What happens if the IFTA return is not filed?

Penalties for late filing or failure to file include:

• Late filing penalty – $50 or 10% of the net tax due, whichever is greater
• Interest on unpaid tax – Annual rate set at the IRS underpayment rate + 2% (approximately 9% for 2026), accrued monthly
• Failure to file penalty – Minimum of $50 per return; additional penalties vary by base jurisdiction
• License revocation – After more than two quarters of non-filing; all past-due returns must be submitted to reinstate it

For further questions or assistance, feel free to contact one of our agents. We’re here to help keep your operations running smoothly and safely.