Fuel tax
Fuel tax is the per-gallon tax levied by each state and by the federal government on diesel, reconciled across states for interstate carriers through IFTA.
Last reviewed · by the fleetchart dispatch desk
Rates vary by jurisdiction, so the price at the pump differs partly because the tax differs. Buying fuel in a low-tax state does not avoid the tax — IFTA reconciles it against where the miles were run.
What it does affect is cash timing and, where a state's rate is very low, the credit position on the quarterly return.