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!