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How to Get IFTA License? Obtaining an IFTA license is essential for trucking companies and owner-operators that operate in multiple U.S. states or Canadian provinces. If your commercial vehicle crosses state lines for business purposes, you need to comply with IFTA (International Fuel Tax Agreement) requirements to legally track and report fuel taxes.
In this guide, we’ll explain:
- What an IFTA license is
- Who needs one
- How to apply step-by-step
- What documents and fees are required
- The connection between IFTA and other registrations like IRP
- Reporting, decals, and renewal tips
What Is an IFTA License?
The International Fuel Tax Agreement (IFTA) is a tax collection agreement among the lower 48 U.S. states and 10 Canadian provinces. It simplifies fuel tax reporting for interstate motor carriers by allowing them to file one consolidated fuel tax return through their base state or jurisdiction.
When you apply for and receive an IFTA license, you’re issued:
- A single fuel tax license (you must keep a copy in each qualified vehicle)
- A pair of IFTA decals per vehicle, which must be displayed on both sides of the cab
For a comparison of IFTA with other programs like IRP, read our guide on IRP vs IFTA.
Who Needs an IFTA License?
You must apply for an IFTA license if:
- You operate a qualified motor vehicle across two or more IFTA jurisdictions
- Your vehicle:
- Has two axles and a GVW over 26,000 pounds, or
- Has three or more axles, regardless of weight, or
- Is used in a combination with a total weight exceeding 26,000 pounds
If you only operate within one state, you typically don’t need an IFTA license — but you may still need to register under IRP if you cross jurisdictions. See our article on what IRP is and how it applies for more.
Step-by-Step: How to Get an IFTA License
1. Determine Your Base Jurisdiction
This is the state where:
- Your business is registered
- Your vehicles are maintained and dispatched
- Your operational records are kept or accessible
Your IFTA account will be managed through this base jurisdiction.
2. Gather Required Documents
Each state may vary slightly, but you’ll typically need:
- USDOT Number
- Federal EIN (Employer Identification Number)
- Business address and contact info
- List of qualified vehicles
- IRP registration proof (see cab card is registration card for documentation)
- Previous fuel receipts or mileage records (if applicable)
3. Complete the IFTA Application
You’ll apply through your base state’s DMV, DOR, or similar tax authority. Many offer online applications.
Examples:
- California: CDTFA
- Texas: Comptroller of Public Accounts
- Florida: Department of Highway Safety and Motor Vehicles
4. Pay the Fees
Application fees are usually low (between $0–$10 per vehicle), but you may have:
- Annual license fees
- Decal fees
- Late registration or penalty fees (if you delay filing)
5. Receive Your License and Decals
Once approved, you’ll be sent:
- One IFTA license (make a copy for each vehicle)
- Two IFTA decals per vehicle
- Place one on each side of the cab
Keep these with your cab card and registration when operating.
Ongoing IFTA Requirements
✅ Quarterly Fuel Tax Reporting
You must file IFTA fuel tax returns every quarter, showing:
- Miles traveled per jurisdiction
- Gallons of fuel purchased and used
- Tax rates per jurisdiction
Even if you have no operations or fuel purchases, you must file a zero return to remain compliant.
✅ Maintain Accurate Records
You must keep:
- Trip sheets or ELD logs
- Fuel receipts
- IFTA license copies
- Cab cards and IRP documentation
✅ Renewal and Decal Replacement
IFTA licenses and decals must be renewed annually (typically by December 31). States may issue penalties for expired decals.
For help organizing your documents, review our compliance tips in the transportation compliance guide.
Common Mistakes to Avoid
- Applying too late: Some states take weeks to issue IFTA decals. Plan ahead.
- Failing to file returns: Even if you had no miles, failing to file can result in fines or license revocation.
- Mismatched records: Make sure your IRP mileage and IFTA reports match. Learn how these systems work together in what is IRP.
FAQs About IFTA Licensing
What is the difference between IRP and IFTA?
IRP handles vehicle registration, while IFTA handles fuel tax reporting. Both apply to interstate trucking and are linked through your cab card and apportioned plates. See IRP vs IFTA for a full breakdown.
Can owner-operators apply for IFTA?
Yes, as long as you operate qualified vehicles across IFTA jurisdictions and meet registration and insurance requirements.
Do I need IFTA if I drive locally?
No, IFTA only applies if you operate in more than one member state or province.
Conclusion: Fuel Tax Compliance Starts with IFTA
Getting your IFTA license is not just a bureaucratic task — it’s a legal requirement that simplifies fuel tax compliance and ensures your trucking business can operate smoothly across state lines. When combined with IRP registration and an up-to-date cab card, your license keeps your operation on the right side of both transportation compliance and revenue reporting laws.
