Fuel Tax Rate changes for Q2

IFTA Fuel Tax Rate

As of July 1, eight states have changed fuel tax rates to grow additional revenue for maintaining or funding road and construction projects and help reverse losses caused by vehicle fuel-efficiency at the pump.

This means fleet IFTA fuel taxes have changed in the following states:

  • California
  • Connecticut
  • Illinois
  • Indiana
  • Maryland
  • Nebraska
  • South Carolina
  • Virginia.

The International Fuel Tax Agreement (IFTA) is a program organized to collect and distribute fuel tax revenue between states and provinces based on where the fuel was used.

Do you need assistance with your International Fuel Tax Reporting (IFTA)?

Contact an IFTA Specialist at our sister company, Compliance Navigation Specialists (CNS).

Trucks heavier than 26,000 lbs that operate interstate must purchase trip by trip fuel permits or operators must have an IFTA account set up that allows the carrier to report and pay fuel taxes owed quarterly.

Setting up an IFTA account requires the carrier to keep detailed records of travel and file quarterly fuel tax reports. In addition, a few states require a mileage tax account either in lieu of or in addition to the IFTA Fuel Tax account.

Below is a summary of the fuel tax rate changes in these states.

  • California: The diesel tax has increased 2.5 cents per gallon to 38.5 cents. Excise tax collected on gas purchases has been set at 47.3 cents and the diesel rate at 36 cents.
  • Connecticut:  The excise rate will decrease 1.9 cents to 44.6 cents per gallon for the next year. The gas tax remains the same.
  • Illinois: The gas tax has increased 0.7 cents to 38.7 cents. The diesel tax rate has increased 0.7 cents to 46.2 cents.
  • Indiana:  The gas tax has increased 1 cent to 31 cents. The diesel tax rate has increased 2 cents to 51 cents.
  • Maryland: The gas tax will decrease 0.7 cents. The diesel tax will reduce 0.4 cents.
  • Nebraska: The gas and diesel tax rate will increase 3.9 cents to 33.2 cents.
  • South Carolina: The diesel and gas excise rate will increase 2 cents to 24 cents.
  • Virginia: The gas tax rate is up 5 cents to 21.2 cents. The diesel rate remains unchanged.

Managing IFTA requirements can be challenging. Between tracking receipts, managing mileage logs, matching fuel to taxes, chasing drivers and filing with the jurisdictions, it is easy to see why many companies search out solutions for the complicated process.

Let CNS, a full-service tax provider, manage the entire process for you. Our fuel tax specialists will work with you to collect your data, ensure your fuel and mileage match, prepare your filings, and even file the paperwork for you directly.

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