How are IFTA taxes calculated?

How to Calculate IFTA Tax: Fuel Tax Reporting

  1. Total Miles Driven in Each State/Province X ÷ Overall Fuel Mileage = Fuel Consumed in Each State/Province X.
  2. Fuel Tax Required in Each State/Province X – Fuel Tax Paid in Each State/Province X = Fuel Tax Still Owed to Each State/Province.
  3. Extra Tips for IFTA Fuel Tax Reporting.

How do you calculate IFTA gallons?

First, you need to calculate how many gallons of fuel you burnt per mile traveled (fuel mileage).

  1. Add up the total number of gallons of fuel you have purchased (while you’re at it, jot down how much fuel tax you paid in each state – more on this in later)
  2. Add up the total number of miles traveled across all states.

What is IFTA mileage?

International Fuel Tax Agreement miles or IFTA miles are all miles or kilometres your vehicle ran throughout the quarter in each IFTA-only jurisdiction, including empty or deadhead miles, mileage for moving around the yard or to the mechanic shop, and personal conveyance miles.

What does surtax mean on IFTA?

The surcharge that you find on your fuel tax report is a tax not paid at the pump. You pay the surcharge tax later – when you file your IFTA quarterly return. Essentially, the philosophy behind your fuel taxes is your heavy vehicle causes more damage to the roads than smaller vehicles.

How much tax do I pay on a fuel card?

Use of a fuel card for business purposes is not classed as a taxable benefit and you won’t have to pay tax on a fuel card unless it is used to cover the cost of the fuel for personal travel.

What are taxable Miles?

If the employer pays a mileage rate that exceeds the 2022 IRS business rate (i.e. the federal rate), then the amount over 58.5 cents per mile (multiplied by the mileage) will be considered taxable income.

What is Indiana surcharge on IFTA?

Indiana’s fuel tax rate will change effective July 1, 2021. Rates will increase from $0.31 to $0.32 per gallon of gasoline, $0.51 to $0.53 per gallon of special fuel, and $0.51 to $0.53 per gallon of alternative fuel as noted in the chart below.

What is Virginia surcharge?

That surcharge is now 3.5 cents per gallon in Virginia. Bennett estimated that the new charge will amount to 5 cents/gallon on July 1 this year, 5 cents on July 1, 2020, and 6.8 cents in July 2021. Bennett said the current base number for Virginia is 20.3 cents per gallon, plus the 3.5 cents surcharge.

Do I get taxed on a company fuel card?

If employees use a fuel card to cover all or part of any private travel, including journeys to and from work, then they are in effect using company funds to pay for their personal expenses. This makes it a taxable benefit on which the employee is taxed.

How does company fuel tax work?

The company fuel tax is also known as fuel benefit and it arises when an employer meets the cost of the fuel for a company car or van or the employee is reimbursed for the cost of any fuel used.