IFTA Rate Changes by Quarter: What Shifts, What Stays, and Why It Matters
Not tax advice. WheelsAndAxle builds preparation worksheets only. You bear sole responsibility for checking all figures with your base jurisdiction before filing. Talk to a CPA or tax professional for guidance on your specific situation.
Every quarter, the IFTA fuel tax rates can shift. Some states change their rate every year like clockwork. Others have not touched theirs in over 30 years. If you run miles in more than a few states, those small per-gallon swings add up fast on your worksheet.
This post breaks down how the IFTA rate matrix works, which states change most, and what you need to watch each quarter.
Where the Rates Live: The IFTA Tax Rate Matrix
IFTA, Inc. keeps a master table of fuel tax rates for all 58 member jurisdictions — 48 U.S. states plus 10 Canadian provinces. The table covers 15 fuel types, from diesel and gasoline to propane, CNG, LNG, and even hydrogen and electricity.
You can pull it up any time at iftach.org/taxmatrix4.
The matrix uses a color code:
- Green means a jurisdiction has checked in and confirmed its rates for the quarter — even if the rate did not change.
- Yellow means the jurisdiction both confirmed and changed its rate from the prior quarter.
- No color means the jurisdiction has not yet responded.
Each quarter has a finalization deadline — roughly two months into the quarter. Until that deadline, the matrix banner reads "This matrix is not final until [date]." For Q2 2026, that deadline is June 2, 2026.
Source: IFTA, Inc. Tax Rate Matrix
Good to know: IFTA, Inc. does not set or check the rates. Their own disclaimer says: "IFTA, Inc. is not responsible for the accuracy of the information. Each jurisdiction is solely responsible." The rates come straight from the states and provinces.
How Often Do Rates Change?
It depends on the state. Some tie their fuel tax to a price index or a formula that shifts every year. Others set a flat rate by law and leave it until the legislature acts.
Here is what a handful of key states do:
Texas — Flat Since 1991
Texas has held its diesel tax at $0.20 per gallon since 1991. The rate is set by statute and does not move unless the legislature passes a new law.
Source: Texas Comptroller — Motor Fuel Taxes
Pennsylvania — Highest in the Country
Pennsylvania's diesel rate is $0.741 per gallon — the steepest of any IFTA jurisdiction. The rate adjusts each year on January 1 based on the average wholesale price of fuel.
Source: Pennsylvania Department of Revenue — Motor Fuel Tax
California — Annual CPI Adjustment
California sets its diesel rate at $0.466 per gallon (as of July 1, 2025). It adjusts once a year on July 1 using the California Consumer Price Index.
Source: CDTFA — Tax Rates — Special Taxes and Fees
Kentucky — Wholesale Price Formula
Kentucky ties its rate to the average wholesale price (AWP) of fuel, surveyed by the state. Since House Bill 299 (2015), the rate adjusts each July 1. The current diesel base rate is $0.220 per gallon, plus a $0.105 surcharge reported as a separate line on IFTA returns.
Source: Kentucky Department of Revenue — Motor Fuels Tax
Georgia — Fuel Efficiency Formula
Georgia adjusts its rate each January 1. The current diesel rate is $0.373 per gallon. House Bill 170 (2015) set up an automatic formula: as the average fuel economy of new vehicles in Georgia rises, the per-gallon rate goes up to keep road funding roughly steady per mile driven.
Source: Georgia DOR — Calculating Tax on Motor Fuel
New York — PBT Component Shifts Annually
New York's IFTA rate has two main parts:
| Piece | Rate (2026) |
|---|---|
| Excise tax (Article 12-A) | $0.080/gal — flat, does not change |
| Petroleum Business Tax (Article 13-A) | $0.1405/gal — adjusts each January 1 |
The PBT rate moves each year based on the Producer Price Index for Refined Petroleum Products published by the Bureau of Labor Statistics. When oil prices fall over the measurement window, the PBT drops — and vice versa.
Source: NY Tax Dept — Publication 908
Oregon — $0 IFTA Rate
Oregon does not tax diesel by the gallon for heavy trucks. Instead, it uses a weight-mile tax — a per-mile charge based on your truck's weight. If you are enrolled in Oregon's weight-mile program, your IFTA rate for Oregon is effectively $0.00. The weight-mile tax is reported and paid separately through ODOT's Motor Carrier system, not through IFTA.
Source: ODOT — Interstate Operations / IFTA
Surcharges: The Hidden Extra Line
Three states add a surcharge on top of their base diesel rate. On your IFTA worksheet, these show up as a separate line item — not folded into the main rate.
| State | Base Diesel Rate | Surcharge | Total |
|---|---|---|---|
| Virginia | $0.327/gal | $0.143/gal | $0.470/gal |
| Kentucky | $0.220/gal | $0.105/gal | $0.325/gal |
| Indiana | n/a (propane only) | Propane surcharge | Varies |
Virginia's surcharge comes from the Motor Carrier Road Tax (§ 58.1-2701). The base diesel tax is collected at the pump. The surcharge is not collected at the pump — it is a separate per-gallon tax on fuel used in Virginia by qualified motor carriers. Both the base rate and the surcharge adjust each July 1.
Source: Virginia DMV — Fuels Tax Rates
Kentucky's surcharge is also reported as a separate IFTA line. Both parts adjust on July 1 each year.
Source: IFTA, Inc. Tax Rate Matrix — Surcharge Rows
Watch out: If you only look at the base rate and miss the surcharge, your worksheet will be short. WheelsAndAxle pulls both the base rate and any surcharge from the IFTA rate matrix, so nothing slips through.
The Canadian Exchange Rate
For Canadian provinces, the IFTA matrix converts rates to U.S. dollars using a fixed exchange rate. This rate is the U.S. Federal Reserve Board noon Eastern time rate on the third Monday of the month before the quarter starts.
For Q1 2026, the exchange rate was U.S. $1.00 = C$1.3765 (C$1.00 = U.S. $0.7265).
The rate is locked for the full quarter — it does not float day-to-day. If the Canadian dollar drops between quarters, the U.S.-dollar rate for Canadian provinces goes down, and you owe less per gallon of Canadian fuel.
Source: IFTA, Inc. Tax Rate Matrix — Exchange Rate
What Changed in Q1 2026?
Each quarter, IFTA, Inc. publishes a "Tax Changes" view showing only the jurisdictions that shifted. For Q1 2026, 10 jurisdictions changed rates:
- Delaware
- Illinois
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Carolina
- Utah
- West Virginia
Most of these are states with annual January 1 adjustments tied to price indexes or wholesale formulas. Texas, with its fixed rate, was not on the list — and has not been for over 30 years.
Source: IFTA, Inc. Tax Rate Changes — Q1 2026
Why This Matters for Your Bottom Line
A few cents per gallon might not sound like much. But if you run 120,000 miles a year at 6 MPG, that is 20,000 gallons. A $0.05 rate swing in a state where you run heavy miles means a $1,000 difference on your annual fuel tax.
Here is what shifts quarter to quarter — and what stays flat:
| Pattern | States | What to expect |
|---|---|---|
| Fixed by law | TX, AK, AZ, FL, many others | No change until the legislature acts |
| Annual CPI or price index | CA, PA, NY, KY, GA, VA | Shifts once a year, usually Jan 1 or Jul 1 |
| Quarterly adjustments | Rare — most states are annual or fixed | Check the matrix each quarter |
| Weight-mile (no fuel tax) | OR | $0 IFTA rate, separate weight-mile bill |
The bottom line: Check the IFTA rate matrix at the start of each quarter. Look for yellow rows — those are the states that changed. If you run miles in those states, your per-gallon cost just shifted.
Where to Look Each Quarter
- IFTA Tax Rate Matrix — iftach.org/taxmatrix4 — the master table, updated as jurisdictions check in.
- Tax Changes view — iftach.org/taxmatrix4/TaxChange.php — shows only the states that changed.
- Your base jurisdiction's website — your state DOT or DOR page for current IFTA rates and any surcharges.
- WheelsAndAxle — we pull the latest rates into your worksheet so you do not have to look them up yourself.
Quick Recap
- 58 jurisdictions, 15 fuel types — rates published at iftach.org.
- Some states (like Texas) have not changed in 30+ years. Others (like New York and Pennsylvania) shift every January.
- Three states add a surcharge (Virginia, Kentucky, Indiana) as a separate line on your IFTA worksheet.
- The Canadian exchange rate is locked once per quarter using the Federal Reserve noon rate.
- 10 states changed rates in Q1 2026 — mostly states with annual January adjustments.
- Check the matrix each quarter. Look for yellow rows. That is where the money moved.
All rates and rules in this post are sourced from state government websites (.gov) and IFTA, Inc. (iftach.org). WheelsAndAxle is a preparation aid — not a CPA, tax advisor, or filing service. Always check figures with your base jurisdiction before filing.
Disclaimer: WheelsAndAxle generates IFTA worksheets as preparation aids only. We are not a tax advisor, CPA, or filing service. Users bear sole responsibility for verifying all figures with their base jurisdiction before filing.
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