International Fuel Tax Agreement (IFTA) and Interstate User Diesel Fuel Tax
How To Use This Guide
The Getting Started page provides information about the licenses required, registration, and returns associated with IFTA.
The Industry Topics section provides helpful information and references.
International Fuel Tax Agreement (IFTA)
IFTA is an agreement among states in the United States and provinces in Canada that simplifies the fuel use tax reporting for motor carriers that travel both inside and outside California. The California Department of Tax and Fee Administration (CDTFA) is responsible for administering the IFTA program for motor carriers based in California.
Interstate User Diesel Fuel Tax License
People who operate diesel-powered qualified motor vehicles and whose interstate travel is restricted to Mexico and California, or people who travel in California whose business is not based in an IFTA jurisdiction, are required to obtain an Interstate User Diesel Fuel Tax License.
Imposition of Tax—Interstate User Diesel Fuel Tax
Under the Interstate User Diesel Fuel Tax program, every person using diesel fuel to operate a qualified motor vehicle within and outside California must pay a tax for every diesel fuel gallon used in California. See the Interstate User Diesel Fuel Tax page for more information.
How the Revenue is Used
The diesel fuel tax revenue is deposited into the Motor Vehicle Fuel Account in the Transportation Tax Fund to pay the refunds authorized by the Diesel Fuel Tax Law. The balance of the revenue is transferred to the Highway Users Tax Account, which is then transferred to the State Highway Account, and local shares are transferred to city and county road funds to construct and maintain public roads and mass transit systems. For further information regarding transportation funding and apportionments, visit the California Department of Transportation's Transportation Funding in California webpage.