Opening a trucking business requires more than just a truck; it requires strict adherence to compliance rules. For any operation that crosses state lines, obtaining your International Fuel Tax Agreement (IFTA) license and decals is one of the very first things you need to do.
IFTA is the agreement that streamlines fuel tax reporting, whereby you only need to file one quarterly fuel tax return with your home state, known as the base jurisdiction. Getting this basic registration right is key to an audit-ready operation. Here is your detailed guide to IFTA registration in 2025.
Before you initiate the application process, it is important that your vehicle be a Qualified Motor Vehicle. A QMV is the threshold beyond which registration under IFTA becomes mandatory. Your commercial vehicle MUST register for IFTA if it:
Has three or more axles, regardless of weight, OR
Is used in combination, such as a tractor and trailer, where the combination GVW rating exceeds 26,000 pounds.
If your vehicle meets these criteria, it must be registered.
Your base jurisdiction is the one state or province in which your Qualified Motor Vehicles are registered and where you keep or can make available the operational records of your fleet. It is the only jurisdiction where you will file your IFTA reports.
Which Agency? The applicable government agency for IFTA is different in each state. It could be the Department of Revenue, Motor Carrier Services, or the Department of Motor Vehicles, often through a special fuel tax division.
The easiest way to get started is to search the internet for "IFTA application [Your State Name] Motor Carrier Services" or "IFTA registration [Your State Name] Department of Revenue." Most jurisdictions now make electronic filing and registration available through a dedicated online portal.
Having the required business and vehicle documentation available as you sit down to complete the online application will assure a smooth, quick submission.
Once you submit your application along with any required fees-which may include license fees and decal fees-the state will process your request.
Registration is just the beginning; the work will be in the quarterly returns. Owner-operators entering the business should immediately move away from any manual method and switch on to a unified tracking system.
Modern compliance systems are important because they ensure the accuracy of the two principal inputs needed for every quarterly fuel tax return:
This automated data ingestion process will ensure that administrative effort is minimized, as well as the risk of audit penalties due to possible human error in data entry associated with IFTA, thereby setting up your new business for long-term operational efficiencies.
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