South Dakota IFTA Fuel Tax

IFTA Reporting and Filing Requirements in South Dakota

Who Needs IFTA Registration In South Dakota?

If South Dakota is your base jurisdiction, you must register for an International Fuel Tax Agreement (IFTA) license if you operate a qualified motor vehicle in two or more IFTA member jurisdictions. A South Dakota IFTA license allows you to report and pay fuel taxes through a single quarterly tax return filed with the South Dakota Department of Revenue – Motor Carrier Services instead of filing separate fuel tax returns in each jurisdiction where you operate.

A qualified motor vehicle is one that meets any of the following criteria:

• Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds.
• Has three or more axles, regardless of weight.
• Is used in combination with another vehicle where the combined gross vehicle weight exceeds 26,000 pounds.

To qualify for IFTA registration in South Dakota, South Dakota must be your base jurisdiction. Generally, this means:

• Your qualified motor vehicles are registered in South Dakota.
• The use of your vehicles is controlled from a location in South Dakota.
• Your vehicle records are maintained or can be made available in South Dakota.
• At least one vehicle in your fleet travels within South Dakota.

Carriers that operate only within South Dakota are not eligible for IFTA. Recreational vehicles are also not considered qualified motor vehicles under IFTA.

For complete eligibility requirements and licensing information, visit the South Dakota Department of Revenue – Motor Carrier Services page and the South Dakota Motor Carrier Handbook – IFTA

What Are the IFTA Reporting Requirements In South Dakota?

If South Dakota is your base jurisdiction for the International Fuel Tax Agreement (IFTA), you must file an IFTA quarterly tax return with the South Dakota Department of Revenue – Motor Carrier Services for every calendar quarter. All South Dakota IFTA license holders must file a return even if no taxable miles were traveled or all miles traveled during the quarter were within South Dakota.

Each South Dakota IFTA quarterly tax return should include:

• Total distance traveled by qualified motor vehicles.
• Total fuel consumed during the reporting period.
• Distance traveled in each IFTA member jurisdiction.
• Fuel consumed in each jurisdiction.
• Tax-paid gallons purchased.
• The fuel tax due or credit based on the applicable IFTA tax rates.

South Dakota requires IFTA returns and payments to be submitted electronically.

To support your quarterly filings, maintain accurate records for each qualified motor vehicle, including:

• Individual Vehicle Distance/Fuel Reports (IVDFRs).
• Fuel receipts and invoices.
• Bulk fuel records, if applicable.
• Records supporting over-the-road fuel purchases.

Fuel and distance records must provide enough information to verify the mileage and fuel reported for each qualified motor vehicle and jurisdiction. South Dakota requires IFTA records to be retained for four years, described by the state as the current tax year plus the three previous years, and made available if requested during an audit.

For reporting requirements and recordkeeping guidance, visit the South Dakota Department of Revenue – Motor Carrier Services page and the South Dakota Motor Carrier Handbook – IFTA.

How Do You File An IFTA Report In South Dakota?

Motor carriers licensed under South Dakota IFTA must file a quarterly IFTA tax return with the South Dakota Department of Revenue – Motor Carrier Services. South Dakota requires IFTA returns and payments to be submitted electronically through Motor Carrier Connect.

1. Gather Your Records

   Before filing your South Dakota IFTA quarterly tax return, collect the records needed to accurately report your fuel use and distance, including:

   • Total distance traveled by qualified motor vehicles.
   • Distance traveled in each IFTA member jurisdiction.
   • Total fuel consumed during the quarter.
   • Tax-paid gallons purchased in each jurisdiction.
   • Individual Vehicle Distance/Fuel Reports (IVDFRs).
   • Fuel receipts and invoices.
   • Bulk fuel records, if applicable.

   South Dakota requires enough distance and fuel documentation to support the information reported on your quarterly return. These records must also be available if your IFTA account is selected for an audit.

2. Log In And Complete Your Return

   Sign in to South Dakota Motor Carrier Connect using your account credentials and select “File IFTA Return.”

   South Dakota provides a detailed guide to using the Motor Carrier Connect System.

   Once logged in:

   • Select “Fuel Summary” for the reporting period.
   • Enter your total distance traveled and total fuel consumed.
   • Report any non-IFTA miles, if applicable.
   • Enter the miles traveled and gallons purchased in each jurisdiction.
   • Complete the required information for each fuel type.
   • Select “Save and Calculate Taxes” and review the Return Summary.
   • Submit your return and pay any balance due electronically.

   If you had no miles or fuel to report for the quarter, Motor Carrier Connect provides a “Set No Operations” option.

3. File Every Quarter

   South Dakota generally requires all IFTA license holders to file a tax return for every quarter, even if no taxable miles were traveled or all miles traveled during the reporting period were within South Dakota. Filing and payment must be completed electronically.

   Certain low-mileage carriers may qualify for annual reporting. If your total distance traveled in IFTA jurisdictions outside South Dakota is less than 5,000 miles during the calendar year and you have at least one year of IFTA filing history, you may request permission from the South Dakota Department of Revenue to report annually. The request must be submitted before filing your first-quarter return, and approval is required. Approved carriers must still file four separate quarterly returns at the end of the year.

   For additional filing guidance and recordkeeping requirements, visit the South Dakota Department of Revenue – IFTA page and the South Dakota Motor Carrier Handbook – International Fuel Tax Agreement (IFTA).

What Are the IFTA License Costs And Fees in South Dakota?

The South Dakota Department of Revenue – Motor Carrier Services charges an annual fee for an IFTA license and decals.

The current South Dakota IFTA fees are:

Each qualified motor vehicle operating under a South Dakota IFTA license must display one decal on each side of the cab and carry a copy of the current IFTA license while traveling in IFTA member jurisdictions.

If your decals are lost, damaged, or you need additional information about your IFTA credentials, contact the South Dakota Department of Revenue – Motor Fuel Tax Program for assistance.

What Are the IFTA Penalties and Interest in South Dakota?

If you file your South Dakota IFTA return late, fail to file a required return, or underpay the fuel tax due, you may be subject to penalties and interest.

Under IFTA rules, South Dakota may assess a penalty of $50 or 10% of the delinquent tax, whichever is greater, for failing to file a return, filing a return late, or underpaying the tax due.

For fleets based in a U.S. jurisdiction, the 2026 IFTA interest rate is 9% annually, calculated monthly at one-twelfth of the annual rate. The rate is adjusted each year and may change for future reporting periods.

Failure to file or pay can also result in additional enforcement action. South Dakota may issue an estimated jeopardy assessment when a required return remains unfiled, suspend or revoke an IFTA license, withhold refunds, and pursue collection of unpaid taxes, penalties, and interest.

To avoid penalties and interest, file each required IFTA return and pay the full amount due by the quarterly filing deadline.

How Do You Renew An IFTA License In South Dakota?

South Dakota IFTA licenses must be renewed annually through the South Dakota Department of Revenue – Motor Carrier Services. Each October, South Dakota sends IFTA license holders a renewal notice for the following calendar year. Renewals are completed online through South Dakota Motor Carrier Connect.

1. Review Your IFTA Account Before renewing your South Dakota IFTA license, verify that your account information is accurate and up to date, including:
   
   
   • Business name and address.
   • Contact information.
   • Existing IFTA license information.
   • Qualified motor vehicle information.
   • Number of IFTA decal sets required for the next license year.
   South Dakota requires carriers to verify their existing license information and order the appropriate number of decals during the online renewal process.
2. Ensure Your Account Is Eligible For Renewal Before your IFTA license can be renewed, make sure you have:
   
   
   • Filed all required IFTA tax returns.
   • Paid all outstanding IFTA taxes.
   • Resolved any outstanding IFTA audit balances.
   • Kept your IRP account in good standing, if applicable.
   • Paid required Unified Carrier Registration (UCR) fees.
   • Completed the annual Agreement to Retain Records and File Returns in a Timely Manner for IFTA and IRP.
   South Dakota may also deny renewal if you no longer meet the state’s IFTA operating requirements, including if you report travel only within South Dakota or file zero-distance returns for the previous 12 months.
3. Renew Your IFTA License Log in to South Dakota Motor Carrier Connect to complete your renewal, verify your license information, and order IFTA decals for each qualified motor vehicle.
   
   Once the renewal requirements and applicable fees are completed, you can access your renewed IFTA license and receive new decals for the upcoming license year.
   
   Keep a copy of the current IFTA license in each qualified motor vehicle and display one current decal on each side of the cab when operating in IFTA member jurisdictions. South Dakota IFTA credentials are issued for a calendar year, and carriers should complete renewal before the new license year begins.
   
   For additional renewal guidance, visit the South Dakota Department of Revenue – Motor Carrier Services page or the South Dakota Motor Carrier Handbook – IFTA.

Simplify South Dakota IFTA Reporting with eIFTA by Truckopedia

Preparing quarterly South Dakota IFTA returns does not have to be complicated. eIFTA by Truckopedia helps owner-operators and fleet managers turn mileage and fuel purchase data into accurate, file-ready IFTA reports.

With eIFTA, you can:

• Generate accurate South Dakota IFTA reports in minutes
• Calculate fuel taxes using current IFTA tax rates
• Track mileage and fuel purchases across IFTA member jurisdictions
• Reduce manual calculations and reporting errors
• Keep your records organized for quarterly filing and IFTA audits

Whether you operate one truck or manage a fleet across multiple IFTA member jurisdictions, eIFTA helps simplify quarterly fuel tax reporting so you can spend less time on paperwork and more time on the road.