HVUT vs. IFTA: Understanding the Differences

Purpose of Each Tax

HVUT (Heavy Vehicle Use Tax) funds highway maintenance through an annual federal tax collected by the IRS. It's based on vehicle weight and applies to trucks with a taxable gross weight of 55,000 pounds or more that operate on public highways.

IFTA (International Fuel Tax Agreement) reconciles fuel taxes among states and provinces. It ensures that fuel taxes are distributed fairly based on where fuel is purchased and where miles are driven, rather than where the vehicle is registered.

Both apply to heavy commercial vehicles, but they serve different purposes and are administered by different agencies. HVUT is a federal tax, while IFTA is an agreement between states and provinces in the United States and Canada.

Key Differences in Filing Requirements

HVUT is filed annually using IRS Form 2290, with the tax year running from July 1 through June 30. The filing deadline is typically the last day of the month following the month the vehicle was first used.

IFTA requires quarterly returns filed with your base jurisdiction. Returns are due on the last day of the month following each quarter (April 30, July 31, October 31, and January 31).

Schedule 1 from Form 2290 proves HVUT payment and is required for state vehicle registration. IFTA decals displayed on your vehicles and quarterly returns prove fuel tax compliance during roadside inspections.

HVUT is a fixed amount based on weight categories, while IFTA tax owed or refunded varies based on fuel purchases, miles driven in each jurisdiction, and the difference between fuel tax rates.

Who Must File Each Tax

HVUT applies to vehicles with a taxable gross weight of 55,000 pounds or more that operate on public highways. This includes owner-operators, fleet managers, and anyone who owns or leases heavy commercial vehicles.

IFTA applies to commercial vehicles with two axles weighing over 26,000 pounds, or any vehicle with three or more axles, that operate in multiple IFTA member jurisdictions. You must register in your base jurisdiction and display IFTA decals.

Some vehicles may be subject to one tax but not the other. For example, a vehicle under 26,000 pounds may still need HVUT if it weighs over 55,000 pounds, but wouldn't need IFTA registration.

Compliance Tips for Managing Both

Coordinate HVUT and IFTA calendars to prepare documentation together. While they have different deadlines, gathering vehicle information, mileage records, and payment methods can be done simultaneously.

Use fleet management software to track mileage and payments for both obligations. Many ELD systems and fleet management platforms can export data in formats needed for both HVUT and IFTA reporting.

Keep separate records for each tax obligation. HVUT requires Schedule 1 storage and vehicle weight documentation, while IFTA requires fuel receipts, trip sheets, and mileage records by jurisdiction.

Understand that paying one tax doesn't exempt you from the other. Both are separate obligations, and failure to comply with either can result in penalties, vehicle impoundment, or loss of operating authority.

Common Mistakes to Avoid

Assuming HVUT covers fuel taxes—it doesn't. IFTA is a separate requirement for interstate fuel tax compliance, and both must be paid independently.

Using the wrong base jurisdiction for IFTA. Your base jurisdiction is where your vehicles are registered and where operational records are maintained, not necessarily where your business is incorporated.

Missing deadlines for either tax. HVUT late filing penalties are 4.5% per month, while IFTA late filing can result in interest charges and potential license revocation.

Not keeping proper documentation. Both taxes require detailed records that must be maintained for several years and may be requested during audits or roadside inspections.