The IFTA tax per mile is not a single, fixed rate; instead, it varies significantly by state or province, as each jurisdiction determines its own specific fuel tax rate. Therefore, there is no one exact answer to the question without specifying the jurisdiction.
Understanding IFTA Tax Rates
The International Fuel Tax Agreement (IFTA) is a cooperative agreement among U.S. states and Canadian provinces to simplify the reporting of fuel use taxes by interstate motor carriers. Instead of paying fuel taxes directly to each jurisdiction where fuel is consumed, IFTA-licensed carriers report all their fuel use and miles traveled in each jurisdiction on a single quarterly tax return. The actual tax rate per mile, however, is set individually by each member jurisdiction.
This means that the "per mile" tax is essentially the fuel tax rate imposed by a particular state or province, converted to a per-mile equivalent based on a vehicle's fuel efficiency, or more directly, applied to the net fuel consumed within that jurisdiction. When you look at IFTA tax rates, you are seeing the current fuel tax rate for gasoline or diesel in a specific state or province.
Current IFTA Fuel Tax Rates by Jurisdiction (Examples)
The IFTA fuel tax rates are subject to change, often on a quarterly basis. Below are examples of IFTA tax rates for select U.S. states, illustrating their variability. These rates reflect the fuel tax amount per gallon (or liter in Canada) that is effectively factored into the IFTA calculation for miles traveled within that jurisdiction.
| State / Province | Type | Rate (per gallon) |
|---|---|---|
| CALIFORNIA (CA) | U.S. | 0.0900 |
| COLORADO (CO) | U.S. | 0.2600 |
| CONNECTICUT (CT) | U.S. | 0.2500 |
| DELAWARE (DE) | U.S. | 0.2200 |
Note: These rates are examples and are subject to change. For the most current and comprehensive list of IFTA tax rates for all jurisdictions, it's essential to consult the official IFTA Tax Rate Matrix on the IFTA, Inc. website.
How IFTA Tax is Calculated and Reported
For IFTA purposes, the "tax per mile" isn't directly applied as a flat rate per mile driven. Instead, it's calculated based on the net fuel consumed in each jurisdiction. Here's a simplified overview:
- Mileage Tracking: Carriers must meticulously record the total miles traveled in each IFTA jurisdiction.
- Fuel Purchase Tracking: All fuel purchased (and taxed) within each jurisdiction must also be recorded.
- Net Fuel Calculation: For each jurisdiction, the total gallons of fuel purchased are subtracted from the total gallons of fuel consumed (based on miles traveled and average miles per gallon).
- Tax/Refund Determination:
- If more fuel was consumed than purchased in a jurisdiction, the carrier owes tax to that jurisdiction at its specific rate.
- If more fuel was purchased than consumed, the carrier is eligible for a credit or refund from that jurisdiction.
- Consolidated Reporting: All these calculations are consolidated into a single quarterly IFTA tax return, which simplifies the process for carriers operating across multiple states or provinces.
Why IFTA Rates Differ
IFTA rates vary because each state and province sets its own fuel tax rates to fund its infrastructure, public services, and other budgetary needs. These rates can be influenced by factors such as:
- Economic Conditions: State budgets and revenue needs.
- Infrastructure Demands: The cost of building and maintaining roads and bridges.
- Environmental Policies: Taxes or incentives related to fuel consumption.
- Legislative Decisions: Changes enacted by state or provincial governments.
This variability underscores why a single "exact" answer for the IFTA tax per mile does not exist without specifying the particular jurisdiction and the relevant reporting quarter.
