Tennessee IFTA Fuel Tax

IFTA Reporting and Filing Requirements in Tennessee

Who Needs IFTA Registration in Tennessee?

You need a Tennessee IFTA license if Tennessee is your base jurisdiction and you operate one or more qualified motor vehicles in Tennessee and at least one other IFTA member jurisdiction.

IFTA allows eligible Tennessee-based carriers to report fuel use taxes through one quarterly return filed with Tennessee rather than filing separate fuel tax returns in every IFTA member jurisdiction where they operate.

Under the International Fuel Tax Agreement, a qualified motor vehicle is a vehicle used, designed, or maintained to transport people or property that meets at least one of the following conditions:

• 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 when the gross vehicle weight or registered gross vehicle weight of the combination exceeds 26,000 pounds

If your vehicles meet these requirements and operate in two or more IFTA member jurisdictions, you must obtain an IFTA license and display valid IFTA decals unless you use valid trip permits for occasional travel.

You generally do not need a Tennessee IFTA license if:

• Your vehicles operate only within Tennessee
• Your vehicles do not meet the definition of a qualified motor vehicle
• You operate recreational vehicles used exclusively for personal pleasure and not in connection with a business
• You obtain the required fuel-use trip permits for occasional travel outside Tennessee instead of maintaining an IFTA license

What Are the IFTA Reporting Requirements in Tennessee?

If you hold a Tennessee IFTA license, you must file a quarterly IFTA fuel tax return reporting the distance traveled and fuel purchased for your qualified motor vehicles.

Under IFTA, Tennessee acts as your base jurisdiction for fuel tax reporting. Instead of filing separate fuel tax returns in every state or province where your vehicles operate, you:

• File one quarterly IFTA return with Tennessee
• Report total miles traveled in IFTA and non-IFTA jurisdictions
• Report taxable miles traveled in each IFTA jurisdiction
• Report tax-paid fuel purchases by jurisdiction
• Calculate fuel taxes owed or credits earned using current IFTA tax rates

To complete your quarterly return, you must maintain accurate records of:

• Miles traveled in each jurisdiction
• Fuel purchased for qualified motor vehicles
• Tax-paid fuel receipts and invoices
• Vehicle and trip distance records
• Supporting mileage and fuel documentation

Tennessee requires IFTA license holders to file a return for every quarter, even if there was no activity during the reporting period.

If your vehicles did not operate during the quarter, you must still file a zero-mile return.

Carriers must retain the records supporting their IFTA returns for at least four years from the return’s due date or filing date, whichever is later. Records must be made available if requested for an audit.

How Do You File an IFTA Report in Tennessee?

The Tennessee Department of Revenue allows carriers to file quarterly IFTA returns online through the Tennessee Taxpayer Access Point (TNTAP) or by submitting Form IFT-506.

1. Prepare Your IFTA Report

   Before filing your quarterly return, gather:

   • Miles traveled in each IFTA jurisdiction
   • Fuel purchase records
   • Tax-paid fuel receipts
   • Vehicle mileage and trip records
   • Supporting documentation for all reported fuel and mileage data

2. Submit Your IFTA Return Online

   Once your report is ready:

   • Log in to your TNTAP account.
   • Select your IFTA account and the applicable reporting quarter.
   • Enter the required mileage and fuel information.
   • Review the return for accuracy.
   • Submit the return electronically.
   • Pay any tax due through TNTAP.

   TNTAP accepts online payments by ACH debit or credit card. Credit card payments may include an additional third-party processing fee.

3. Submit Via Paper Filing

   Carriers may also complete the Tennessee IFTA Tax Return Form IFT-506 and its Fuel Tax Computation Worksheet.

   Mail the completed and signed return, along with any payment due, to:

   Tennessee Department of Revenue
   Vehicle Services Division
   500 Deaderick Street
   Nashville, TN 37242

   Tennessee requires every IFTA license holder to file a return each quarter, even when no miles were traveled or no taxable fuel was used during the reporting period.

What Are the IFTA License Costs and Fees in Tennessee?

Tennessee’s current IFTA application and motor carrier guidance do not list a fee for obtaining or renewing a standard IFTA license or receiving the required annual stickers.

Approved carriers receive:

• One IFTA license
• Two IFTA stickers for each qualified motor vehicle
• Annual renewal credentials

Additional stickers may be requested through TNTAP. However, Tennessee’s current guidance does not state whether a separate fee applies to additional stickers.

Carriers remain responsible for:

• Quarterly IFTA reporting
• Fuel taxes owed
• Penalties and interest for late filing or payment
• A $100 reinstatement fee if a revoked IFTA license must be reinstated

Carriers that do not hold IFTA credentials and enter Tennessee only occasionally may obtain a 7-Day Temporary Fuel Use Permit. The permit costs $30 per vehicle, plus applicable wire service fees, and must be obtained before entering Tennessee. It is valid for no more than seven consecutive days and only for the vehicle listed on the permit.

What Are the IFTA Penalties and Interest in Tennessee?

Tennessee assesses penalties and interest when IFTA returns are filed late or fuel taxes are not paid by the due date.

The standard IFTA penalty is the greater of:

• $50, or
• 10% of the net tax due

This penalty may apply even when:

• No tax is owed
• The return results in a credit balance
• There was little or no activity during the reporting period

In addition:

• Interest accrues on unpaid fuel tax balances
• Interest begins after the filing due date
• Interest continues until the balance is paid in full

Failure to maintain accurate mileage and fuel records may also result in additional assessments during an audit.

To avoid penalties and interest, carriers should:

• File quarterly returns on time
• Maintain complete fuel and mileage records
• Pay any fuel tax due by the filing deadline

How Do You Renew an IFTA License in Tennessee?

Tennessee IFTA licenses must be renewed annually through the Tennessee Taxpayer Access Point (TNTAP). Carriers can renew their IFTA account online using the same system used for quarterly filing and account management.

To renew your Tennessee IFTA license:

• Log in to your TNTAP account.
• Review and update your business information if necessary.
• Complete the IFTA Application and indicate that the filing is a renewal.
• Submit the renewal request.
• Receive your new license and decals for the upcoming year.

Renewals may also be completed using the official Tennessee IFTA Application form.

Before renewing, carriers should ensure:

• All quarterly IFTA returns have been filed.
• Any outstanding taxes, penalties, or interest have been paid.
• Account information is current and accurate.

Simplify Your IFTA Reporting with eIFTA by Truckopedia

Skip manual calculations and generate accurate, file-ready IFTA reports in minutes. eIFTA by Truckopedia helps you organize mileage and fuel data, calculate fuel taxes automatically, and prepare reports ready for filing with your base jurisdiction.

With eIFTA, you can:

• Import mileage and fuel purchase data with ease
• Automatically apply the latest IFTA tax rates for each quarter
• Instantly calculate taxes owed or credits due
• Generate file-ready IFTA reports for review and submission

Whether you’re an owner-operator or managing a fleet, eIFTA helps reduce reporting errors, save time, and simplify quarterly IFTA compliance.