How to Calculate IFTA
Calculating IFTA may seem complicated at first, but the process becomes much easier when you understand the basics.
Step 1: Track Total Miles
Record every mile your truck travels during the quarter.
Accurate odometer readings are critical because they form the foundation of your IFTA report.
Step 2: Track Fuel Purchases
Keep receipts for every fuel purchase.
Each receipt should include:
- Date
- State
- Gallons purchased
- Price paid
Step 3: Calculate Average MPG
Use the following formula:
MPG = Total Miles ÷ Total Gallons
For example:
- Total Miles: 12,000
- Total Gallons: 2,000
- Average MPG = 6.0
Step 4: Determine Miles Driven by State
Every state must receive a mileage allocation.
Example:
- Montana: 4,000 miles
- Wyoming: 3,000 miles
- Idaho: 2,000 miles
- Utah: 3,000 miles
Step 5: Complete Your Quarterly Report
Once mileage and fuel totals are known, state tax rates are applied to determine whether taxes are owed or credits are due.
Why Drivers Struggle With IFTA
The calculations themselves are not difficult.
The challenge is maintaining accurate records throughout the quarter.
Most problems occur because drivers:
- Lose receipts
- Forget mileage entries
- Wait until the end of the quarter
How Truck Mile Mate Helps
Truck Mile Mate makes it easy to:
- Record state mileage
- Track fuel purchases
- Review totals
- Export reports
Instead of sorting through paperwork, drivers can keep everything organized in one place.
Frequently Asked Questions
Is there an easy way to calculate IFTA?
Yes. Digital tracking tools can calculate totals automatically as data is entered.
Can spreadsheets be used?
Yes, but spreadsheets require manual updates and can lead to errors.
What is the most important record?
Accurate mileage records and fuel receipts are the two most important pieces of information.