IFTA Tax Rates by State (Q1 2026)

Each IFTA jurisdiction (state or province) sets its own fuel tax rate. These rates are compiled by IFTA, Inc.into a quarterly tax rate matrix. The rates represent the tax per gallon of fuel consumed in that jurisdiction. When you file your IFTA return, you multiply the net taxable gallons in each state by that state's rate to determine tax due or credit owed.

Rates change every quarter. Some states adjust their fuel tax rates quarterly (often tied to fuel price indexes), while others change rates annually or by legislative action. Pennsylvania, for example, has the highest diesel tax rate in the nation at approximately $0.741 per gallon, while Mississippi and Oklahoma are among the lowest. You must always use the rate that was in effect during the quarter you are filing, not the current rate.

The official IFTA tax rate matrix is published by IFTA, Inc. approximately one month before each quarter begins. You can access the official matrix at iftach.org. The rates below are approximate and provided for reference; always verify against the official source before filing.

The spread between the highest and lowest IFTA rates is significant — Pennsylvania charges over 4 times more per gallon than Mississippi or Oklahoma. This creates real strategic implications for your fueling decisions. While you should never go out of your way to buy fuel in a low-tax state (the extra miles cost more than the tax savings), being aware of rates helps when you have flexibility in where you fuel.

For example, if you are driving from Ohio to New York through Pennsylvania, consider fueling up in Ohio ($0.3850/gal) before entering Pennsylvania ($0.7410/gal). The tax savings on a 200-gallon fill-up would be approximately $71.20. Over a quarter, these decisions add up.

Remember: IFTA redistributes tax based on where you drive, not where you fuel. Buying fuel in a low-tax state just means you get a smaller credit for that state's purchases, but you still owe the high-tax state for miles driven there. The net effect is the same in total, but you benefit from cash flow timing since tax-paid gallons reduce your immediate out-of-pocket.