ExpressIFTA Blog

Wednesday, June 20, 2018

Here Are the Differences Between Road Tax 2290 And IFTA

If you are new to the trucking industry, it is understandable that it is hard to remember all the various abbreviations and tax forms. So to give you an extra hand, here are the difference between road tax 2290 and IFTA.

What is Road Tax 2290?

The IRS Form 2290 or Heavy Vehicle Use Tax is a federal tax on commercial vehicles that:
  • Have a total gross weight of more than 55,000 pounds
  • Operate on public highways for more than 5,000 miles per year
Truck taxes are annually collected and used for highway construction and maintenance. For more information click here for the Federal Highway Administration website.

But what does “gross weight” mean?
  • This is the weight of your truck when it is fully equipped for a haul. This will include any equipment you usually carry such as lubricants, fuel, etc.
  • However, this does not include you and any specialized equipment you use on a blue moon like a compressor or crane.

Your HVUT tax amount is $100 plus (approximately) $22 for every 1,000 Ibs over the taxable gross weight of 55,000 lbs. The maximum HVUT tax amount you can owe is $550 if your vehicle is 75,000 pounds or more. For a more accurate HVUT tax amount click here.

Please note that your tax amount will vary greatly if your vehicle is exclusively used for logging.

What is IFTA?

IFTA, or the International Fuel Tax Agreement, is an arrangement between 48 of the United States and 10 Canadian provinces to report fuel use by motor carriers that operate in more than one jurisdiction (state).

To show you filed your IFTA return and paid your taxes you will be issued an IFTA license and IFTA stickers. The license should be kept in your truck at all times, and the IFTA stickers are displayed under your driver’s side window. 

Unlike the annual Heavy Vehicle Use Tax, your IFTA report is quarterly.
Your vehicle qualifies for IFTA reporting if you travel between states and :
  • Have two axels and a gross/registered weight of more than 26,000 lbs
  • Have a combined weight exceeding 26,000 lbs
  • Have three or more axels regardless of vehicle weight

Deadlines Up Ahead Truckers

IFTA Deadline: July 31, 2018 (2nd Quarter)
IRS Form 2290 (HVUT): August 31, 2018

If you have any questions regarding how to file your IFTA report, don’t hesitate to contact our dedicated 100% US support team. Or if you still need to file your IRS Heavy Vehicle Use Tax our sister product ExpressTruckTax is always here to help as a market leader.

Get Started Today!

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