To understand an IFTA mileage calculator, you must first know what the IFTA is. The International Fuel Tax Agreement (IFTA) is an arrangement between the US and Canada to simplify how commercial fleets report fuel use. Motor carriers that operate in multiple jurisdictions can use an IFTA mileage calculator to simplify tax reporting.
What Is an IFTA State Mileage Calculator?
An IFTA state mileage calculator is a tool that truck drivers and trucking companies use. It can calculate a truck’s miles driven in each state for International Fuel Tax Agreement (IFTA) reporting.
The calculator typically requires the following information:
- Start and end points of each trip
- Any fuel purchase records for the trip
You may also need to enter details such as the type of vehicle and date. The calculator will then use this information to calculate the mileage driven in each state. The resulting data is essential for IFTA compliance, as drivers must pay fuel taxes in the states and provinces where they operate.
How Does an IFTA Fuel Mileage Calculator Work?
An IFTA fuel mileage calculator is a tool that helps commercial truck drivers calculate the fuel mileage they drive in each state. It considers the miles driven and the fuel consumed in each state.
The calculator then uses this information to calculate the average fuel mileage for each state per quarter. This information is important for IFTA reporting, as it determines the amount of fuel tax owed to each state.
If a motor carrier owes more fuel tax than they have paid, they will need to pay the difference. If they have paid more fuel tax than they owe, they receive a refund.
How Do I Use an IFTA Mileage by State Calculator?
Here is an example of how to use an IFTA mileage by state calculator. For the purposes of this example, we’re using IFTA Free Calculator.
Let’s say you are a truck driver who drives from Los Angeles, CA, to Dallas, TX. You drive 1,500 miles along the way. You purchase 50 gallons of diesel in each state you drive through.
On the IFTA mileage by state calculator, you would enter the following information:
- The starting zip code of your trip: Los Angeles, CA, 90012
- The ending point of your trip: Dallas, TX, 75207
The calculator will then ask how many gallons of fuel you purchased in each state you passed through. Once you plug in your fuel purchases, it will calculate how much tax or credit is due in each state. Here are the results of our imaginary trip:
| State | Taxable Miles | Taxable Gallons | Tax-Paid Gallons | Net Taxable Gallons | Tax or Credit Due |
| AZ | 392 | 54 | 50 | 4 | $1.04 |
| CA | 228 | 32 | 50 | -18 | -$15.35 |
| NM | 165 | 23 | 50 | -27 | -$5.67 |
| TX | 658 | 91 | 50 | 41 | $8.20 |
| TOTAL | 1443 | 200 | 200 | 0 | -$11.78 |
You can then use this data, compiled over a three-month period, to pay any taxes due to each state and claim any refunds owed to you.
How to Calculate IFTA Mileage
There are two options for calculating IFTA mileage. First, you could do this manually. You would need to track the miles you’ve driven in each state or province during the appropriate period. You would also need to calculate the fuel you’ve purchased in each state or province during the same period. You would then use this data to calculate how much fuel tax you should have paid to each jurisdiction and compare that to how much you actually paid.
Of course, there is a far easier way to manage this. An IFTA mileage calculator can do all the math for you. It will then tell you how much you owe to each jurisdiction, as well as how much credit you can claim.
Use Bestpass to Reduce Fleet Costs
Fuel is a considerable expense for commercial fleets. IFTA taxes and tolls add to the costs. Fortunately, there is a simple way to reduce your spending without sacrificing efficiency. Toll management solutions from Bestpass can help you keep your costs under control and streamline your budget. Contact us today to learn more about how we can help.
