Understanding the 3rd Quarter IFTA Tax Rate Changes for 2023
|It’s hard to believe the third quarter of 2023 is already underway, 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 give you a hand!
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 3rd quarter IFTA tax rate changes were recently announced. Here is a quick update on these changes and what they mean for motor carriers.
The states and provinces with updated tax rates are as follows (in USD, CAD where applicable).
State/Province | Fuel Type | 2nd Quarter 2023 | 3rd Quarter 2023 |
New Brunswick (NB) | Gasoline | 0.2192 | 0.1087 |
Special Diesel | 0.2886 | 0.1545 | |
Gasohol | 0.2192 | 0.1087 | |
Propane | 0.1444 | 0.0670 | |
LNG | 0.2524 | 0.1545 | |
CNG | 0.2524 | 0.1545 | |
Methanol | 0.1636 | 0.1087 | |
E-85 | 0.2192 | 0.1087 | |
M-85 | 0.1636 | 0.1087 | |
A55 | 0.2886 | 0.1545 | |
Biodiesel | 0.2886 | 0.1545 | |
Prince Edward Island (PE) | Gasoline | 0.1952 | 0.0847 |
Special Diesel | 0.2756 | 0.1415 | |
Gasohol | 0.1952 | 0.0847 | |
LNG | 0.2513 | 0.1527 | |
CNG | 0.1826 | 0.0847 | |
Ethanol | 0.1952 | 0.0847 | |
Methanol | 0.1396 | 0.0847 | |
E-85 | 0.1952 | 0.0847 | |
M-85 | 0.1479 | 0.0847 | |
A55 | 0.1477 | 0.0847 | |
California (CA) | Special Diesel | 0.8530 | 0.8930 |
A55 | 0.8530 | 0.8930 | |
Biodiesel | 0.8530 | 0.8930 | |
Colorado (CO) | Gasoline | 0.2400 | 0.2500 |
Special Diesel | 0.2450 | 0.2650 | |
Gasohol | 0.2400 | 0.2500 | |
Ethanol | 0.2400 | 0.2500 | |
Methanol | 0.2400 | 0.2500 | |
E-85 | 0.2400 | 0.2500 | |
M-85 | 0.2400 | 0.2500 | |
A55 | 0.2400 | 0.2500 | |
Biodiesel | 0.2450 | 0.2650 | |
Illinois (IL) | Gasoline | 0.6540 | 0.6850 |
Special Diesel | 0.7570 | 0.7880 | |
Gasohol | 0.6540 | 0.6850 | |
Propane | 0.6830 | 0.7140 | |
LNG | 0.6460 | 0.6770 | |
CNG | 0.5420 | 0.5730 | |
Ethanol | 0.6540 | 0.6850 | |
Methanol | 0.6540 | 0.6850 | |
E-85 | 0.6540 | 0.6850 | |
M-85 | 0.6540 | 0.6850 | |
A55 | 0.6540 | 0.6850 | |
Biodiesel | 0.7570 | 0.7880 | |
Iowa (IA) | Ethanol | 0.2400 | 0.2450 |
E-85 | 0.2400 | 0.2450 | |
Biodiesel | 0.3010 | 0.2980 | |
Electricity | – | 0.0260 | |
Kentucky (KY) | Gasoline | 0.2460 | 0.2870 |
Special Diesel | 0.2160 | 0.2570 | |
Gasohol | 0.2460 | 0.2870 | |
Propane | 0.2460 | 0.2870 | |
LNG | 0.2160 | 0.2570 | |
CNG | 0.2160 | 0.2570 | |
Ethanol | 0.2460 | 0.2870 | |
Methanol | 0.2460 | 0.2870 | |
E-85 | 0.2460 | 0.2870 | |
M-85 | 0.2460 | 0.2870 | |
A55 | 0.2160 | 0.2570 | |
Biodiesel | 0.2160 | 0.2570 | |
Maryland (MD) | Gasoline | 0.4270 | 0.4700 |
Special Diesel | 0.4345 | 0.4775 | |
Gasohol | 0.4270 | 0.4700 | |
Propane | 0.4270 | 0.4700 | |
LNG | 0.4270 | 0.4700 | |
CNG | 0.4270 | 0.4700 | |
Ethanol | 0.4270 | 0.4700 | |
Methanol | 0.4270 | 0.4700 | |
E-85 | 0.4270 | 0.4700 | |
Biodiesel | 0.4345 | 0.4775 | |
Massachusets (MA) | Propane | 0.2990 | 0.2690 |
LNG | 0.2990 | 0.2690 | |
CNG | 0.2990 | 0.2690 | |
Michigan (MI) | Gasoline | 0.4670 | 0.4750 |
Special Diesel | 0.4860 | 0.5020 | |
Gasohol | 0.4670 | 0.4750 | |
Propane | 0.4860 | 0.5020 | |
LNG | 0.4860 | 0.5020 | |
CNG | 0.4670 | 0.4750 | |
Ethanol | 0.4670 | 0.4750 | |
Methanol | 0.4670 | 0.4750 | |
E-85 | 0.4670 | 0.4750 | |
M-85 | 0.4670 | 0.4750 | |
A55 | 0.4860 | 0.5020 | |
Biodiesel | 0.4860 | 0.5020 | |
Missouri (MO) | Gasoline | 0.2200 | 0.2450 |
Special Diesel | 0.2200 | 0.2450 | |
Gasohol | 0.2200 | 0.2450 | |
Ethanol | 0.2200 | 0.2450 | |
E-85 | 0.2200 | 0.2450 | |
M-85 | 0.2200 | 0.2450 | |
Biodiesel | 0.2200 | 0.2450 | |
Ohio (OH) | CNG | 0.4000 | 0.4700 |
Rhode Island (RI) | Gasoline | 0.3400 | 0.3700 |
Special Diesel | 0.3400 | 0.3700 | |
Gasohol | 0.3400 | 0.3700 | |
Propane | 0.3400 | 0.3700 | |
LNG | 0.3400 | 0.3700 | |
Ethanol | 0.3400 | 0.3700 | |
Methanol | 0.3400 | 0.3700 | |
E-85 | 0.3400 | 0.3700 | |
M-85 | 0.3400 | 0.3700 | |
A55 | 0.3400 | 0.3700 | |
Biodiesel | 0.3400 | 0.3700 | |
South Dakota (SD) | Gasoline | – | 0.2800 |
Propane | – | 0.2000 | |
LNG | – | 0.1400 | |
CNG | – | 0.1400 | |
Ethanol | – | 0.1400 | |
Methanol | – | 0.1400 | |
Utah (UT) | Gasoline | 0.3640 | 0.3450 |
Special Diesel | 0.3640 | 0.3450 | |
Gasohol | 0.3640 | 0.3450 | |
Ethanol | 0.3640 | 0.3450 | |
Methanol | 0.3640 | 0.3450 | |
E-85 | 0.3640 | 0.3450 | |
M-85 | 0.3640 | 0.3450 | |
A55 | 0.3640 | 0.3450 | |
Biodiesel | 0.3640 | 0.3450 | |
Virginia (VA) | Gasoline | 0.2800 | 0.2980 |
Special Diesel | 0.2890 | 0.3080 | |
Gasohol | 0.2800 | 0.2980 | |
Propane | 0.2800 | 0.2980 | |
LNG | 0.3160 | 0.3360 | |
CNG | 0.2800 | 0.2980 | |
Ethanol | 0.2800 | 0.2980 | |
Methanol | 0.2800 | 0.2980 | |
E-85 | 0.2800 | 0.2980 | |
M-85 | 0.2800 | 0.2980 | |
A55 | 0.2800 | 0.2980 | |
Biodiesel | 0.2890 | 0.3080 |
It’s important to note that these changes only apply to the 3rd 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 3rd Quarter Changes Impact Your Trucking Company?
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. You win some, you lose some!
TruckLogics Streamlines Your 3rd Quarter IFTA Reporting
With TruckLogics, managing your business and generating your 3rd 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.
To make things even quicker, take advantage of our numerous integration options that allow you to import your fuel and mileage details from the software you already use. It doesn’t get easier than that!