What Are Non-Taxable and Exempt IFTA Miles?

Now that the IFTA first quarter has officially come and gone, it’s time to start getting those IFTA reports together. And when you’re doing those reports, figuring out which miles are taxable and which aren’t can be a daunting task.

So check out the guide below to non-taxable IFTA miles to see which of your miles are going to cost you and which miles you don’t need to report!

What Do I Need on my IFTA Report?

On your IFTA report, you will need to include the following information:

• Total Miles- The total miles traveled in each jurisdiction for each fuel type
• Total Taxable Miles- Total miles traveled in each jurisdiction minus the non-taxable miles
• Total Gallons Consumed- Divide your total taxable mileage by your estimated mpg 
• Total Gallons Purchased- Enter the total gallons purchased for all qualified motor vehicles
• Net Taxable Gallons- The difference between net gallons consumed and net gallons purchased 

What Are Non-Taxable IFTA Miles?

So what are non-taxable IFTA miles exactly? Well, non-taxable miles are miles that you drove that do not need to be included on your IFTA report. Why do these miles not need to be included on your report? Take a look.

Do you use fuel permits at all when driving? Well if you do, any mileage driven while using fuel permits is not taxable. Now, you’ll still want to include any mileage driven in your total miles section, it just won’t be included in the taxable miles section for the jurisdiction where you purchased the permit.

But what about toll miles? Are toll miles taxable? Another good question, and one would think (incorrectly, that is) that toll miles wouldn’t be taxable, since you’re basically already paying taxes on those miles, right? Wrong. Even though you have to pay to drive on toll roads, the amount you pay doesn't go towards fuel taxes. Those fees are just paid in exchange for using a particular road. So make sure you're including all toll mileage in your taxable miles.

Some other states have other rules for specific areas, vehicles, or roads that are non-taxable areas, and remember, if a state doesn’t participate in IFTA, those miles are non-taxable, too!

So hopefully now you know exactly which miles you need to include as taxable on your IFTA report, and which miles you don’t. But if you have any other questions or are still a bit confused, just give us a call at 803.386.0320 and we’ll help you out. And don’t forget, we can file your IFTA reports for you!