IFTA

Discussion in 'Ask An Owner Operator' started by AriGab, Feb 11, 2024.

  1. AriGab

    AriGab Bobtail Member

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    Sorry I couldn't find my answer in one of the threads. I have been trying to calculate the average cost of IFTA per year or per mile. The only thing I have come close to was an article that said .34 cents per mile. Does this sound accurate? So if I drive 150,000 miles per year I will pay $51,000 per year in IFTA tax? Obviously that would be between all states.
     
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  3. AriGab

    AriGab Bobtail Member

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    Yes I understand each state is different. So if you took all the miles in each state that you drove (assuming you drove in almost every state) added them all up. Then added all the taxes for each state up would it be safe to say that over the course of the year at 150,000 miles that the average per state would be. 34 cents and you would pay $51,000 in IFTA for the year. In other words what are you O/O paying per year vs miles you drive?
     
  4. m16ty

    m16ty Road Train Member

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    There are so many variables to that. I bet I didn’t pay over $20 to IFTA last year. Some quarters I will even have a credit if it works out that I buy fuel in high tax states and run a lot in lower tax states. The way we run it’s just a small amount each quarter either way.
    IFTA isn’t charging you any extra money, you are just paying fuel tax for the fuel you burn in any given state, either at the pump or filing IFTA, however it works out.
     
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  5. Judge

    Judge Road Train Member

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  6. AriGab

    AriGab Bobtail Member

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    Thank you so much for that. I guess I am extremely confused about how IFTA works. I was under the impression that that if a state ifta tax was .34 cents and you drove 1,000 miles in that state for the year you would owe that state $340. Please help lol
     
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  7. Judge

    Judge Road Train Member

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  8. m16ty

    m16ty Road Train Member

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    If you buy fuel in a state, your fuel taxes are paid at the pump for the miles you travel in that state. If you don’t buy fuel in a state, the taxes are paid from the state where you did buy fuel. I don’t know if that makes sense, but you are only paying IFTA on the difference in tax rates between states. It’s actually one of the most “fair” taxes we pay.
     
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  9. AriGab

    AriGab Bobtail Member

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  10. Oxbow

    Oxbow Road Train Member

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    It is not per mile, it is per gallon of fuel used in each state calculated by your total mpg in all states. As mentioned, each state charges their own fuel tax (collected at the pump), and then the fuel that you used in each state is calculated by dividing the miles ran in that state by your mpg.

    The important aspect to consider when purchasing fuel in one state or another is what the actual price per gallon of fuel is. If state A has fuel at $4.00 per gallon with $.34 per gallon of that being fuel tax, and state B has fuel at $3.95 per gallon with $.28 per gallon of fuel tax, which is the cheaper fuel? State A is cheaper because $4.00 minus $.34 equals $3.66, while state B is $3.95 minus $.28 which equals $3.67.

    This is why @m16ty stated that he sometimes gets a credit, because purchased more fuel in state A than he used, and less in state B than he used.
     
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