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International Fuel Tax Agreement (IFTA)
Vehicles that travel interstate pay fuel tax to cover the miles traveled in each state, unless exempt. This is accomplished through the International Fuel Tax Agreement (IFTA), fuel trip permits or reciprocity agreements.
If you are based in an IFTA jurisdiction (Iowa is a member of the IFTA) and operate a qualified vehicle in two or more IFTA jurisdictions, you must comply with IFTA laws. All states except Alaska and the District of Columbia participate in IFTA. All Canadian provinces except the Yukon and Northwest Territories are also IFTA members.
Carriers from any IFTA jurisdiction operating in another IFTA jurisdiction must obtain an IFTA permit from their base state or purchase a temporary fuel permit for the jurisdiction in which they are operating.
A vehicle is qualified for IFTA if:
  1. The vehicle or combination weighs more than 26,000 pounds; or
  2. The vehicle or combination is registered for more than 26,000 pounds; or
  3. The power unit has three or more axles.
Vehicles from IFTA jurisdictions that do not meet any of the three criteria are granted fuel reciprocity when traveling through another IFTA jurisdiction.
The IFTA license costs $10. A copy of this license must be carried in each vehicle and produced on request. IFTA decals are required to be displayed on the exterior of the power unit, one on each side. IFTA decals are 50 cents for a set of two.
Options for Vehicles Based in Non-IFTA Jurisdictions
  1. Enter Iowa with 30 gallons or less of motor vehicle fuel in the supply tanks of the vehicle and purchase fuel as the vehicle travels through the state. Evidence of adequate fuel purchases must be made available for inspection by law enforcement personnel; or
  2. Purchase a $20 temporary fuel permit. The permit is valid for one trip or 72 hours, whichever comes first. Upon departure from the state, a new permit is required before re-entering.
Border States Agreement
Minnesota and Wisconsin each have an agreement with Iowa to allow IFTA qualified vehicles to operate within 30 miles of the state border without a fuel license or decal.
Nebraska and Iowa have an agreement to allow IFTA-qualified vehicles to operate without fuel license or decal within the Nebraska cities of Bellevue, Dakota City, South Sioux City and the Iowa cities of Carter Lake, Port Neal and Sioux City. An additional agreement allows travel between Nebraska City, Neb., and Hamburg, Iowa, with travel restricted in Iowa from the Nebraska state line to Hamburg on Highways 2, 275 and 333. The IFTA border commercial zone agreement between Omaha and Council Bluffs extends five miles beyond the corporate city limits.
Missouri and Iowa have an agreement to allow IFTA-qualified farm and ranch vehicles operated by private carriers, and school buses to operate within 30 miles of the state border without a fuel license or decal. This agreement does not apply to for-hire carrier vehicles.