Understanding the 2nd Quarter IFTA Tax Rate Changes for 2023
It’s hard to believe we are already in the second quarter of 2023, but here we are! With your trucking business in full swing, there are a lot of moving parts…literally!
One of the requirements you’ll need to keep up with is IFTA reporting with your jurisdictions. Mastering your IFTA reporting is another way to stay ahead of the curve and avoid any additional stress when the next reporting deadline rolls around.
Plus, TruckLogics is here to help you!
A Quick Overview of IFTA
The International Fuel Tax Agreement (IFTA) is a tax agreement among the 48 contiguous states in the US and 10 Canadian provinces. Under this agreement, motor carriers who operate in more than one jurisdiction are required to report and pay taxes on fuel consumed within each jurisdiction.
IFTA tax rates are updated quarterly, and the 2nd quarter IFTA tax rate changes were recently announced. In this blog, we will discuss these changes and what they mean for motor carriers.
Are there any Changes to the IFTA Rates for Q2 of 2023?
Effective April 1, 2023, the following changes have been made to the IFTA tax rates. However, the tax rate schedule is not final until June 1, 2023. The states with updated tax rates are as follows (in USD).
|S. No||State/Province||Fuel Type||1st Quarter 2023||2nd Quarter 2023|
It’s important to note that these changes only apply to the 2nd quarter of 2023. The IFTA tax rates are subject to change every quarter based on the average retail price of fuel in each state.
Will these Changes Impact your Trucking Company?
What do these changes mean for you? Good question! If you operate in states or jurisdictions where the tax rate increases, you will pay more taxes on the fuel. Conversely, if you operate in any of the states or jurisdictions where the tax rate is decreasing, you will pay less in taxes.
TruckLogics Streamlines Your IFTA Reporting
With TruckLogics, managing your business and generating your 2nd Quarter IFTA report is hassle-free. You don’t have to be concerned about changes in tax rates because we take care of updating them automatically. Simply enter your mileage and fuel data, and we’ll handle everything else for you.