How to Track IFTA and Fuel Taxes Easily as an Owner-Operator

For owner-operators, managing fuel taxes can be one of the more frustrating parts of running a trucking business. The International Fuel Tax Agreement (IFTA) was designed to simplify the process, but if you’re not organized, it can quickly become a time-consuming burden.

Understanding how IFTA works and setting up a solid system to track your fuel use and miles driven will save you time, reduce errors, and help you avoid costly penalties during audits.

What Is IFTA?

The International Fuel Tax Agreement is a cooperative agreement among the lower 48 U.S. states and Canadian provinces. It allows owner-operators to report and pay fuel taxes based on the miles they drive in each jurisdiction, instead of buying individual permits for every state or province they travel through.

Under IFTA, you file a quarterly report showing:

• Total miles driven in each jurisdiction

• Total gallons of fuel purchased

• Where that fuel was purchased

The idea is to ensure fuel taxes are distributed fairly to each state or province based on where the fuel was actually consumed—not just purchased.

Why Accurate Tracking Matters

Poor recordkeeping or guesswork can trigger audits, result in penalties, or even suspend your IFTA license. It’s not uncommon for owner-operators to underestimate the level of detail required, especially early on.

That’s why consistent, accurate tracking—miles, fuel receipts, and trip routes—is critical. The sooner you set up a reliable system, the easier your quarterly filings will be.

Start With a Simple System

While many owner-operators eventually move to electronic solutions, even a simple spreadsheet or paper logbook can be effective in the beginning. The key is consistency. Log every fill-up, record odometer readings at each state line, and save every receipt.

Tracking manually requires discipline, but once it becomes part of your routine, it only takes a few minutes each day.

For those hauling across multiple states regularly, a GPS-enabled mileage tracker can eliminate much of the manual effort and reduce errors. Many ELDs now include IFTA tracking as a feature, making it easier to stay compliant without juggling separate systems.

Keep Every Fuel Receipt

Fuel receipts are more than just a formality. They’re required for your IFTA filings and essential if you’re ever audited. Each receipt should include the date, location, number of gallons, and total cost.

Make sure the receipts are legible and stored somewhere safe—whether that’s in a folder in your cab or scanned into a digital system.

It’s also worth noting that credit card statements alone are not accepted as proof of fuel purchase. The original itemized receipt is the only acceptable documentation for IFTA purposes.

Record Miles by Jurisdiction

This is where many new owner-operators make mistakes. IFTA requires a breakdown of total miles driven in each individual state or province—not just total miles overall.

If you’re relying on manual tracking, jotting down your odometer reading at every state line is a must. If you’re using GPS-based software or ELD integrations, most of this is done automatically, but it’s still your responsibility to review and ensure accuracy.

Be especially careful with out-of-route miles, detours, or personal trips. All miles count toward your IFTA reporting—even those not directly tied to a paying load.

File Quarterly Reports On Time

IFTA reports are due four times per year—April, July, October, and January. Each filing requires a detailed report of your miles and gallons, even if you didn’t drive during the quarter.

Missing deadlines or underreporting can lead to fines and possible suspension of your IFTA license. Some jurisdictions even charge interest on late payments, so it’s not something to let slide.

If you’re overwhelmed by the process, consider outsourcing your IFTA filings to a qualified tax service. While there’s a cost involved, it can save hours of work and provide peace of mind during audits.

Automate Where You Can

Technology has come a long way, and today’s owner-operators have access to apps and software that drastically simplify IFTA tracking. These tools can log your location, record fuel purchases, calculate miles per jurisdiction, and even auto-generate quarterly reports.

Some options integrate directly with your ELD, meaning all the data you need is pulled in real time without extra input. It’s not mandatory to go digital, but for those running multi-state routes often, automation can reduce both human error and workload.

Final Thoughts

Tracking IFTA and fuel taxes may never be the most exciting part of the job, but it doesn’t have to be a constant headache. The more proactive and organized you are, the easier it becomes. Whether you choose a basic manual system or a fully automated setup, the goal remains the same: accurate, timely reporting that keeps your operation running without interruption.

Staying ahead of IFTA compliance isn’t just about avoiding fines—it’s about running a smooth, professional business that’s built to last.