Colorado IFTA Fuel Tax

IFTA Reporting And Filing Requirements In Colorado

Who Needs IFTA Registration In Colorado?

You must register for the International Fuel Tax Agreement (IFTA) if you operate qualified motor vehicles in two or more IFTA member jurisdictions and Colorado is your base jurisdiction.

Colorado 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 a Colorado IFTA license, you can file a single quarterly fuel tax return and report fuel use across all IFTA member jurisdictions instead of filing separate fuel tax returns in each state or Canadian province where your qualified vehicles operate.

Motor carriers whose qualified motor vehicles operate entirely within Colorado generally do not need IFTA registration or file IFTA fuel tax returns.

If you’re unsure whether your business or vehicles qualify for IFTA registration, review the Colorado IFTA Application Process. If you need additional assistance, contact the Colorado Department of Revenue Fuel Tax Unit for official guidance.

What Are the IFTA Reporting Requirements In Colorado?

If Colorado is your base jurisdiction for the International Fuel Tax Agreement (IFTA), you must file an IFTA fuel tax return with the Colorado Department of Revenue every quarter, even if you did not operate your qualified motor vehicles or purchase taxable fuel during the reporting period.

Instead of filing separate fuel tax returns in every IFTA member jurisdiction where your fleet operates, you will:

• File one quarterly IFTA fuel tax return with Colorado
• Report the total miles traveled in each IFTA member jurisdiction
• Report tax-paid fuel purchased in each jurisdiction 
• Calculate the net fuel tax due or credit based on the applicable IFTA tax rates
• Pay any tax due or receive eligible credits through your Colorado IFTA account

Colorado distributes the appropriate fuel tax to the other IFTA member jurisdictions on your behalf, eliminating the need to file separate fuel tax returns in each jurisdiction.

To support accurate reporting, you should maintain complete mileage records, fuel receipts, trip reports, and other supporting documentation for every qualified motor vehicle operating under your IFTA account. Colorado generally requires these records to be retained for four years from the return due date or filing date, whichever is later.

For additional reporting requirements, recordkeeping guidance, and filing instructions, visit the Colorado IFTA Filing Information page or review the Colorado IFTA Recordkeeping Requirements.

How Do You File an IFTA Report In Colorado?

Colorado IFTA license holders must file quarterly fuel tax returns with the Colorado Department of Revenue.

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 member jurisdiction
   • Total taxable fuel purchased in each jurisdiction
   • Fuel receipts and supporting documentation
   • Vehicle mileage records for the reporting period

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

2. Submit Your IFTA Return

   Colorado supports online IFTA filing through Revenue Online. Log in to your account to file your quarterly IFTA return, make payments, view your filing history, and manage your IFTA account.

   If you are unable to file online, Colorado also provides the IFTA Fuel Tax Return (Form DR 0122) for eligible paper filings.

   After submitting your return, review all reported mileage, fuel purchases, and tax calculations to ensure the information is complete and accurate before the filing deadline.

   If you need assistance with your IFTA return or Revenue Online account, review the Colorado IFTA Filing Information or contact the Colorado Department of Revenue Fuel Tax Unit for official guidance.

What Are the IFTA License Costs And Fees in Colorado?

Colorado does not charge a fee to apply for an IFTA license or receive your initial set of IFTA decals.

The current Colorado IFTA fees are:

• IFTA License Fee: No fee
• Initial IFTA Decals: No fee

To receive or renew your IFTA credentials, your account must be in good standing. This means all required IFTA returns must be filed and any outstanding tax liabilities must be resolved before the Colorado Department of Revenue issues your license or decals.

If you need additional decals, replacement decals, or have questions about your IFTA account, visit the Colorado IFTA Program, the decals page, or contact the Colorado Department of Revenue Fuel Tax Unit for assistance.

What Are the IFTA Penalties And Interest In Colorado?

Colorado may assess penalties and interest if you fail to file a required IFTA return, file your return after the due date, or fail to pay the fuel tax owed.

Penalties may apply for:

• Failing to file an IFTA return
• Filing an IFTA return after the due date
• Failing to pay the full amount of fuel tax due

Under the International Fuel Tax Agreement (IFTA), the penalty is the greater of:

• $50, or
• 10% of the net tax due

In addition to the penalty, interest is charged on any unpaid tax from the due date until the tax is paid in full. The applicable interest rate is determined under the IFTA and is updated periodically. A fraction of a month is treated as a full month when calculating interest.

To avoid penalties and interest, file your quarterly IFTA return and pay any tax due by the applicable deadline. 

Colorado IFTA licenses and decals must be renewed annually through the Colorado Department of Revenue.

Renewal notices are issued to eligible carriers before the beginning of the new registration year. To receive your new IFTA license and decals without interruption, submit your renewal before your current credentials expire on December 31.

To renew your Colorado IFTA account:

1. Log in to Revenue Online

2. Complete your IFTA renewal application

3. Verify your account information

4. Ensure all required IFTA returns have been filed and any outstanding tax liabilities have been paid

To remain eligible for renewal, your IFTA account must be in good standing. This includes filing all required quarterly IFTA returns and resolving any outstanding balances before the Colorado Department of Revenue issues your new license and decals.

Colorado participates in the IFTA grace period. Carriers may continue operating with prior-year IFTA credentials through February 28 while obtaining their new license and decals. Beginning March 1, all qualified motor vehicles must display current-year IFTA decals and carry a valid IFTA license.

If you need assistance with your renewal or account status, visit the Colorado IFTA License Renewal page or contact the Colorado Department of Revenue Fuel Tax Unit for official guidance.

Simplify Quarterly IFTA Reporting with eIFTA by Truckopedia

Preparing quarterly IFTA reports doesn’t have to be complicated. eIFTA by Truckopedia helps owner-operators and fleet managers simplify fuel tax reporting by converting mileage and fuel purchase data into accurate, file-ready IFTA reports.

With eIFTA, you can:

• Generate accurate IFTA reports in minutes
• Automatically calculate fuel taxes using the latest IFTA tax rates
• Track mileage and fuel purchases across all IFTA member jurisdictions
• Reduce manual calculations and reporting errors
• Maintain organized records to support IFTA compliance and audits

Whether you’re filing your Colorado IFTA return or managing a fleet that operates across multiple jurisdictions, eIFTA makes quarterly fuel tax reporting faster, easier, and more accurate.