IFTA Explained: Why You Need These Decals

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Share your fuel taxes across states with IFTA!
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There are many things that interstate truckers need to get so they can maintain compliance. The IRP is just one of a wide range of things that truckers need to do in order to stay legal on the road. If you’ve heard of the IRP, then chances are good you’ve heard of the IFTA, too. But what exactly is the IFTA, and who needs it? In this handy article, we’ll explain everything you need to know about IFTA and why you may need IFTA decals!

What is the IFTA?

“IFTA” stands for the International Fuel Tax Agreement. Like the IRP, the IFTA is an agreement between the U.S. and Canada to help various jurisdictions across North America share their tax revenue. However, as you may have guessed from the name, IFTA helps these various legal jurisdictions share the taxes on fuel purchases.

The reason that IFTA exists is that truckers only buy fuel periodically, but they drive for long stretches. Think about it this way: if you fill up in Kansas and then immediately cross into Nebraska, you’ll drive for much longer in Nebraska, but Kansas will take all the tax revenue. Those taxes go towards maintaining roads and highways, so you’re paying another state to maintain its highways while causing more wear and tear on another’s. That doesn’t exactly seem fair, does it?

Who Needs to Get IFTA Decals?

Not every trucker needs to get IFTA decals. If you only plan on operating your truck in one of the 48 contiguous U.S. states or 10 Canadian provinces, then you don’t need to worry about IFTA. However, if you do, then you’ll need to check if your vehicle qualifies for IFTA. If your vehicle meets any of the following criteria, then you’ll need to get IFTA decals.

  • Your vehicle has two axles and a gross or registered weight that exceeds 26,000 pounds.
  • It’s part of a combination whose combined weight exceeds 26,000 pounds.
  • It has three or more axles. The vehicle’s weight does not apply in this case.

If you need help getting your IFTA decals today, our sister company, DOT Operating Authority, can help you with your filing today! We can help you get your decals in the first place, as well as file your tax returns. Stay compliant out on the road by getting your IRP and IFTA registrations with us!

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