Alabama IFTA Fuel Tax

IFTA Reporting and Filing Requirements in Alabama

Who Needs IFTA Registration in Alabama?

You must obtain Alabama IFTA credentials if Alabama is your base jurisdiction before operating qualified motor vehicles in two or more IFTA member jurisdictions.

Alabama requires IFTA registration for vehicles that meet any of the following criteria:

• A vehicle with two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds
• A vehicle with three or more axles, regardless of weight
• A combination of vehicles with a combined gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds

By obtaining an Alabama IFTA license, you can file a single fuel tax return and report fuel use across all IFTA member jurisdictions instead of filing separate fuel tax returns in each state or province where you operate.

Motor carriers whose vehicles operate entirely within Alabama are exempt from IFTA registration and reporting requirements.

What Are the IFTA Reporting Requirements in Alabama?

Under the International Fuel Tax Agreement (IFTA), if Alabama is your IFTA base jurisdiction, you file one quarterly IFTA fuel use tax return with Alabama.

If you hold an Alabama IFTA license, you must file fuel tax returns with the Alabama Department of Revenue (ADOR).

Instead of filing separate fuel tax returns in every state or Canadian province where you operate, you:

• File one IFTA fuel tax return with Alabama
• Report miles traveled in each jurisdiction
• Report fuel purchased in each jurisdiction
• Calculate fuel taxes owed or credits earned based on the applicable fuel tax rates

Once your return is processed, Alabama distributes the appropriate fuel tax amounts to the other IFTA member jurisdictions where your vehicles operated.

To support accurate reporting, carriers should maintain detailed mileage records, fuel receipts, and other supporting documents for all qualified vehicles operating under their Alabama IFTA license.

How Do You File an IFTA Report in Alabama?

Alabama IFTA license holders must file fuel tax returns with the Alabama Department of Revenue (ADOR).

1. Prepare Your IFTA Report

   Before filing your return, gather the information needed to accurately report your fleet’s operations, including:

   • Total miles traveled in each IFTA jurisdiction
   • Total fuel purchased in each jurisdiction
   • Fuel receipts and supporting documentation
   • Vehicle mileage records for the reporting period

   Using complete and accurate records helps ensure your IFTA return is filed correctly and reduces the risk of reporting errors.

2. Submit Your IFTA Return

   Alabama allows carriers to manage IFTA accounts through the Alabama Motor Carrier (AMC) System.

   If you need assistance with your IFTA account or filing requirements, contact:

   Alabama Department of Revenue
   Motor Vehicle Division – Motor Carrier Services
   P.O. Box 327620
   Montgomery, AL 36132-7620
   Phone: (334) 242-9000

   After submitting your return, review all reported mileage and fuel information carefully to ensure it is complete and accurate.

What Are the IFTA License Costs and Fees in Alabama?

Alabama charges a fee for IFTA decals issued to qualified motor vehicles.

The current Alabama IFTA fee is:

• IFTA Decal Fee: $17 per decal set

Each qualified vehicle operating under an Alabama IFTA account must display the required IFTA decals. Decal requests must be submitted to the Alabama Department of Revenue and the account must be in good standing before additional decals can be issued.

Alabama also offers IRP/IFTA eFile at no cost. Carriers can file IFTA returns electronically through the Alabama Motor Carrier (AMC) System without purchasing software or paying an online filing fee.

What Are the IFTA Penalties and Interest in Alabama?

Alabama may charge penalties and interest if you fail to file a required IFTA return, file a return after the due date, or underpay fuel taxes owed.

Penalties may apply for:

• Failing to file an IFTA return
• Filing an IFTA return late
• Underpaying fuel taxes due

Under IFTA rules, the penalty is the greater of:

• $50, or
• 10% of the net tax due

Interest is charged on late payments and underpaid taxes at the rate established by the International Fuel Tax Agreement (IFTA) for the reporting period.

Alabama assesses IFTA penalties and interest in accordance with IFTA requirements and applicable state law.

How Do You Renew an IFTA License in Alabama?

Alabama IFTA licenses and decals must be renewed annually through the Alabama Motor Carrier (AMC) System.

IFTA accounts can be renewed beginning in November before the upcoming registration year.

To renew your Alabama IFTA credentials:

• Log in to the Alabama Motor Carrier (AMC) System
• Complete your IFTA renewal application
• Verify your account information
• Pay any required fees
• Ensure all required IFTA returns have been filed and any outstanding balances have been resolved

Renewing your IFTA account on time helps prevent interruptions in your operating credentials and ensures your fleet remains compliant when traveling in IFTA member jurisdictions.

If you need assistance with your renewal, contact the Alabama Department of Revenue Motor Carrier Services at (334) 242-9000.

Simplify Quarterly IFTA Reporting with eIFTA by Truckopedia

eIFTA by Truckopedia helps you eliminate the stress of manual calculations, spreadsheets, and paperwork by converting your fuel and mileage data into accurate, file-ready IFTA reports. It is designed for both owner-operators and fleets to streamline the entire quarterly fuel tax reporting process from start to finish.

With eIFTA, you can:

• Automatically apply the latest IFTA tax rates for each reporting quarter
• Organize mileage and fuel purchase data across all jurisdictions
• Calculate fuel taxes owed or credits with accuracy
• Generate reports ready for review, filing, and recordkeeping

With fewer manual steps and reduced chances of error, eIFTA helps you save time, improve accuracy, and simplify quarterly IFTA compliance.