IFTA License & Decals

What is an IFTA License and Decal?

The International Fuel Tax Agreement (IFTA) is a cooperative agreement among 48 U.S. states and 10 Canadian provinces that simplifies fuel tax reporting for carriers operating in multiple jurisdictions. Instead of keeping up with every state’s fuel tax rules, you file a single quarterly return through the state where you are based. When you register, your state will issue: One (1) IFTA license , a copy of which will go in every qualified truck you operate and Two (2) IFTA decals per qualified vehicle, to be placed on each side of your vehicle, so that inspectors can verify you are registered under IFTA. Without valid IFTA credentials, you may be stopped, fined, or even risk having your vehicle designated Out of Service.

You need an IFTA license and decals if you operate commercial motor vehicles (CMVs) that:

  • Have a gross vehicle weight (GVW) (or registered GVW) over 26,000 lbs
  • Have three or more axles on the power unit, regardless of weight
  • Travel in two or more IFTA jurisdictions (states or Canadian provinces).

You do not need IFTA credentials if you:

  • Only operate intrastate (within one state)
  • Drive a recreational vehicle (RV) for personal use
  • Drive vehicles that are government-owned

Registering saves you time and money and lets you file a single consolidated quarterly return covering all member states and provinces.

Your IFTA license and vehicle decals must be valid before you begin any interstate operations with a qualifying vehicle. Once registered, you must:

  • Renew annually. Most states require renewal by December 31 or January 1. Mark the date on your calendar and file early to avoid year-end paperwork hassle.
  • File quarterly fuel tax returns: These are due on the last day of the month following the end of each quarter:
    • April 30 for Q1 (January–March)
    • July 31 for Q2 (April–June)
    • October 31 for Q3 (July–September)
    • January 31 for Q4 (October–December)

If you did not operate your vehicle during any particular quarter, you must still file a “zero return” in order to avoid fines & penalties. 

To apply for an  IFTA license and decals, you must go through the Department of Transportation (DOT)  of the state in which you are based. Portals and forms may vary slightly between states, but the process is largely the same in all of them:

Step 1 –  Apply
Visit your state’s IFTA portal or DMV website. Complete the IFTA license and decals application with your company details, USDOT number, and information about your qualifying vehicles.

Step 2 – Receive your credentials
Your state will issue you one IFTA license and two decals per qualified vehicle. Keep a copy of the license in every truck and apply the decals to each side of your truck’s cab.

Step 3 – Maintain accurate records
Track all miles driven in each jurisdiction and keep fuel purchase receipts, invoices, or fuel card statements that show date, gallons, and location. Hold on to these for at least four years in case of an audit.

Step 4 – File quarterly returns
Each quarter, report your total miles driven, gallons of fuel purchased, and taxes owed. File a” zero return” if no miles were driven.

Step 5 – Renew every year
Request new decals before your state’s renewal deadline so your trucks don’t get flagged or placed Out of Service.

Having your paperwork ready speeds up approval and protects you if your account is audited. Here is what most states require:

  • Proof of vehicle ownership. A title or lease agreement for each qualified truck will work.
  • Proof of commercial insurance. An active policy covering interstate operations for each vehicle.
  • USDOT or MC number. Your FMCSA registration information.
  • Mileage records – You will need to provide trip sheets, ELD logs, or GPS reports showing miles driven per jurisdiction
  • Fuel purchase records – Receipts, invoices, or fuel card statements showing gallons pumped, as well as dates and locations.

Keeping this paperwork or electronic records organized will make renewals easier and will help you pass any potential IFTA audits (should they happen).

You will pay a small state filing fee and the price of decals for each qualified truck. The real cost comes from the fuel tax you owe each quarter, based on where you drive and buy fuel.

  • Application fee: Varies by state, typically $0–$10.
  • Decals: $2–$5 per vehicle, per pair.
  • Quarterly filing: Your quarterly fuel tax will be calculated based on how many miles you drove and how much fuel you purchased during that quarter.

 

Ignoring IFTA rules gets expensive, quickly.

  • Operating without credentials: Roadside inspectors can issue citations and fines, as well as place your truck “Out of Service” until you show proof of registration.
  • Late or missing returns: Expect a $50 or 10% penalty (whichever is higher) plus interest.  Repeatedly filing late can result in a suspended IFTA account.
  • Poor or missing records: Audits can lead to back taxes, added penalties, and extra administrative work.
  • Fraudulent reporting: Intentionally misrepresenting your mileage or fuel consumption can trigger heavy fines as well as suspension or permanent revocation of your IFTA license.
Frequently Asked Questions

Questions About IFTA License & Decals? We’ve Got Answers

1.

Do intrastate carriers need an IFTA license and decals?

No. The agreement applies only to interstate carriers, so if all of your operations stay within one state, you do not need IFTA credentials.


2.

How often do I file an IFTA return?

Returns must be filed quarterly and are due on the following dates for each quarter:April 30 for Q1, July 31 for Q2, October 31 for Q3, and January 31 for Q4. Even if one or more of your trucks did not operate during that quarter, you will still need to submit a “zero return” filing to keep your account active and to avoid generating penalties.


3.

Do I need decals for every vehicle?

Yes. Each qualified vehicle must display two decals, one on each side of the cab for the entirety of the licensing period. If you add trucks mid-year, make sure to order additional decals to stay compliant.


4.

Can I use fuel card or ELD data for IFTA reporting?

Yes. Fuel card transactions and ELD (electronic logging device) data are both acceptable if they show date, location, gallons, and mileage. Many fleets use these tools to automate reports and reduce audit risk.


5.

What happens if I file late or fail to file?

Your state will charge a $50 or 10% penalty (whichever is higher) plus interest on unpaid taxes. Repeated non-filing can lead to suspension or revocation of your IFTA account, and your trucks can be placed “Out of Service” until you become compliant again.

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