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Fuel Tax

 


IFTA/MCFT

Businesses operating motor vehicles that have:

  • Three axles or more on the power unit, regardless of weight;
  • A combination of power unit and trailing unit with a combined gross vehicle weight or combined registered weight in excess of 26,000 pounds; or
  • Any vehicle over 26,000 gross or registered vehicle weight;

and

  • operate within the state of Indiana;

must file a tax return based on fuel usage. There are some exceptions to this rule for intrastate vehicles.

Vehicles subject to this tax must be registered with the Indiana Department of Revenue's (DOR) Motor Carrier Services. Yearly renewals, decals, and license cards are required.  Quarterly tax returns must also be filed.

There are two types of vehicle fuel tax accounts:

1. International Fuel Tax Agreement (IFTA) for interstate carriers who travel in Indiana plus at least one other state outside of Indiana, including Canada; and

2. Motor Carrier Fuel Tax (MCFT) for intrastate carriers who operate only within Indiana (Indiana travel only).

If your fleet has both types of qualified vehicles with International Registration Plan apportioned plates and Indiana base plates, you will need an IFTA license for licensing and filing.

For more information, refer to the resources below, call (317) 615-7345, or e-mail IndianaMotorFuel@dor.in.gov.

Online Fuel Tax System

Motor carrier customers can manage all of their IFTA and MCFT transactions, including processing and paying quarterly tax returns, renewals and ordering additional decals, online 24/7 by using the online Fuel Tax System.

Users must have a current fuel tax account. To establish a new account, email FTSnewaccount@dor.in.gov.

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International Fuel Tax Agreement (IFTA) License

Interstate Carriers

A fuel tax account, IFTA license and IFTA decals are required if you operate interstate vehicles.

You can apply for and IFTA license by submitting an IFTA-1A Application to DOR. You will need to provide the following information when applying for the IFTA license:

  • Proof of a valid Indiana physical address and/or income tax filings with DOR (last three tax years);
  • IRP account number or copies of Indiana Farm or Transporter Plate Registrations; and
  • USDOT number issued to you, your business, or a DOT authority lease agreement.

You will need an IFTA licensing and filing requirements for your entire flet if you have vehicles with both:

  • International Registration Plan Plates and travel outside of Indiana; and
  • Indiana base plates adn travel only within Indiana.

The congressionally mandated electronic logging device (ELD) rule makes tracking, managing and sharing driving records with law enforcement more straightforward and faster. However, most ELDs fall short when it comes to paying and documenting fuel taxes and IRP. See DOR's guidance on ELDs and audit tips to help ensure you keep accurate records.

If you operate only within Indiana you may be eligible for an Interstate Motor Carrier Fuel Tax (MCFT) license.

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Indiana Motor Carrier Fuel Tax (MCFT) License

Intrastate Carriers

If you operate intrastate motor vehicles, a fuel tax account, MCFT license, and MCFT decals are required.

Commercial vehicles that travel only in Indiana are used, designed or maintained for the transportation of persons or property having:

  • Three axles or more on the power unit, regardless of weight;
  • A combination of power unit and trailing unit with a combined gross vehicle weight or combined; or
  • Any vehicle over 26,000 gross or registered vehicle weight.

Your vehicle may meet the requirements listed above, but there are some exceptions.​ The following vehicles are not required to have an MCFT license if they travel only within Indiana:

  • Vehicles operated by the United States or by an agency of states in which the state of Indiana participates;
  • School buses used privately;
  • Vehicles used in any bus operations;
  • Vehicles registered by the Bureau of Motor Vehicles as farm or under a similar law of another state
    Intercity buses;
  • Vehicles displaying dealer plates; and
  • Recreational vehicles.

You can apply for an MCFT license by submitting an MCFT-1A Application to DOR. You will need to provide the following information when applying for the MCFT license:

If your motor vehicles meet the above criteria, but leave Indiana, you need an International Fuel Tax Agreement (IFTA) license.

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