IFTA isn't a tax on where you buy fuel — it's a tax on where you burn it. The return reconciles the two:
- Fleet MPG = total miles in all jurisdictions ÷ total gallons consumed by your qualified vehicles for the quarter. (Consumed — if you run bulk fuel or carry meaningful tank inventory across quarter lines, that's not identical to gallons purchased.)
- Taxable gallons per state = your miles in that state ÷ fleet MPG.
- Net gallons = taxable gallons − tax-paid gallons you purchased in that state (gallons, from your receipts — not a dollar figure).
- Tax or credit = net gallons × that state's rate from the official matrix. Negative = credit. Sum across states = your return.
The three surcharge states
Indiana, Kentucky, and Virginia each have a second line on the matrix: a surcharge on every gallon you consume there. The trap: the surcharge is not reduced by fuel you bought at the pump — buying fuel in Indiana doesn't pre-pay Indiana's surcharge. It's why a driver who fuels heavily in a surcharge state can still owe money there.
Oregon is not an IFTA fuel-tax state
The matrix shows no ordinary fuel rate for Oregon: it runs a separate weight-mile tax with its own permits and reporting. Your Oregon miles still count in fleet MPG, but Oregon taxes are handled outside the IFTA rate math.
Cousins to know about
- Kentucky KYU — a weight-distance tax of $0.0285/mile for vehicles over 59,999 lb combined license weight (KRS 138.660), on top of the IFTA surcharge. Separate license, separate filing.
- New York HUT and New Mexico WDT — their own weight-distance regimes with separate registrations.
Why there's no estimator on this page yet: a calculator that skips the surcharge lines, fuel types, or Canadian rates can misstate a real return, and we'd rather give you no number than a wrong one. A full-scope diesel estimator (all jurisdictions, surcharges included, Oregon handled properly) is planned once the current quarter's official rates go final in September.
Sources: iftach.org (matrix & jurisdictions) · drive.ky.gov (KYU rate, KRS 138.660) · Reviewed July 2026