Q:

Do states have different IFTA tax rates?

A:

Quick Answer

States have different international fuel tax agreement tax rates, and quarterly state rate summaries are available online as of 2015, states the International Fuel Tax Association. The American-Canadian agreement permits carriers to sign up and pay motor fuel taxes in their home jurisdictions, states the Virginia Department of Motor Vehicles.

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Do states have different IFTA tax rates?
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Full Answer

Under the International Fuel Tax Agreement, a motor carrier files a single tax return every three months. The return covers all of the states and provinces through which the carrier travels. The carrier receives tax credits for any fuel overpurchases. Another agreement benefit is that a carrier no longer has to obtain a separate fuel tax permit for every jurisdiction in which it operates, according to the Virginia Department of Motor Vehicles.

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