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/ProvinceFuel Type2nd Quarter 20233rd Quarter 2023
New Brunswick (NB)Gasoline0.21920.1087

Special Diesel0.28860.1545

Gasohol0.21920.1087

Propane0.14440.0670

LNG0.25240.1545

CNG0.25240.1545

Methanol0.16360.1087

E-850.21920.1087

M-850.16360.1087

A550.28860.1545

Biodiesel0.28860.1545
Prince Edward Island (PE)Gasoline0.19520.0847

Special Diesel0.27560.1415

Gasohol0.19520.0847

LNG0.25130.1527

CNG0.18260.0847

Ethanol0.19520.0847

Methanol0.13960.0847

E-850.19520.0847

M-850.14790.0847

A550.14770.0847
California (CA)Special Diesel0.85300.8930

A550.85300.8930

Biodiesel0.85300.8930
Colorado (CO)Gasoline0.24000.2500

Special Diesel0.24500.2650

Gasohol0.24000.2500

Ethanol0.24000.2500

Methanol0.24000.2500

E-850.24000.2500

M-850.24000.2500

A550.24000.2500

Biodiesel0.24500.2650
Illinois (IL)Gasoline0.65400.6850

Special Diesel0.75700.7880

Gasohol0.65400.6850

Propane0.68300.7140

LNG0.64600.6770

CNG0.54200.5730

Ethanol0.65400.6850

Methanol0.65400.6850

E-850.65400.6850

M-850.65400.6850

A550.65400.6850

Biodiesel0.75700.7880
Iowa (IA)Ethanol0.24000.2450

E-850.24000.2450

Biodiesel0.30100.2980

Electricity0.0260
Kentucky (KY)Gasoline0.24600.2870

Special Diesel0.21600.2570

Gasohol0.24600.2870

Propane0.24600.2870

LNG0.21600.2570

CNG0.21600.2570

Ethanol0.24600.2870

Methanol0.24600.2870

E-850.24600.2870

M-850.24600.2870

A550.21600.2570

Biodiesel0.21600.2570
Maryland (MD)Gasoline0.42700.4700

Special Diesel0.43450.4775

Gasohol0.42700.4700

Propane0.42700.4700

LNG0.42700.4700

CNG0.42700.4700

Ethanol0.42700.4700

Methanol0.42700.4700

E-850.42700.4700

Biodiesel0.43450.4775
Massachusets (MA)Propane0.29900.2690

LNG0.29900.2690

CNG0.29900.2690
Michigan (MI)Gasoline0.46700.4750

Special Diesel0.48600.5020

Gasohol0.46700.4750

Propane0.48600.5020

LNG0.48600.5020

CNG0.46700.4750

Ethanol0.46700.4750

Methanol0.46700.4750

E-850.46700.4750

M-850.46700.4750

A550.48600.5020

Biodiesel0.48600.5020
Missouri (MO)Gasoline0.22000.2450

Special Diesel0.22000.2450

Gasohol0.22000.2450

Ethanol0.22000.2450

E-850.22000.2450

M-850.22000.2450

Biodiesel0.22000.2450
Ohio (OH)CNG0.40000.4700
Rhode Island (RI)Gasoline0.34000.3700

Special Diesel0.34000.3700

Gasohol0.34000.3700

Propane0.34000.3700

LNG0.34000.3700

Ethanol0.34000.3700

Methanol0.34000.3700

E-850.34000.3700

M-850.34000.3700

A550.34000.3700

Biodiesel0.34000.3700
South Dakota (SD)Gasoline0.2800

Propane0.2000

LNG0.1400

CNG0.1400

Ethanol0.1400

Methanol0.1400
Utah (UT)Gasoline0.36400.3450

Special Diesel0.36400.3450

Gasohol0.36400.3450

Ethanol0.36400.3450

Methanol0.36400.3450

E-850.36400.3450

M-850.36400.3450

A550.36400.3450

Biodiesel0.36400.3450
Virginia (VA)Gasoline0.28000.2980

Special Diesel0.28900.3080

Gasohol0.28000.2980

Propane0.28000.2980

LNG0.31600.3360

CNG0.28000.2980

Ethanol0.28000.2980

Methanol0.28000.2980

E-850.28000.2980

M-850.28000.2980

A550.28000.2980

Biodiesel0.28900.3080

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!

Add a Comment

Your email address will not be published. Required fields are marked *