How to Register for IFTA in Illinois

To set up an International Fuel Tax Agreement (IFTA) account in Illinois, carriers must apply through the Illinois Department of Revenue (IDOR). Motor carriers based in Illinois that operate qualified motor vehicles in at least one other IFTA jurisdiction are required to register to simplify fuel tax reporting. A qualified vehicle is defined by the FMCSA as having two axles and a gross vehicle weight exceeding 26,000 pounds, having three or more axles regardless of weight, or being used in combination with a total weight exceeding 26,000 pounds. DispatchTool assists Illinois carriers by automating the collection of GPS-based mileage data and fuel purchase records across state lines, reducing the administrative burden of manual logging. The platform generates detailed reports that match Illinois Form IFTA-100 and IFTA-101 requirements, ensuring that dispatchers and owner-operators have the exact figures needed for quarterly submissions. To streamline your record-keeping for the next tax quarter, you can create a DispatchTool account to start tracking IFTA-eligible miles automatically.

Determining Eligibility for Illinois IFTA

Before applying, you must confirm that Illinois is your 'Base Jurisdiction.' According to the Illinois Department of Revenue, your fleet must be based in Illinois, the operational control and records must be maintained or available in the state, and your qualified motor vehicles must accrue miles on Illinois highways. A qualified motor vehicle is any power unit used for transporting persons or property that exceeds 26,000 lbs GVW or has three or more axles. If you only operate within the borders of Illinois, you do not need an IFTA license; instead, you may be subject to the Illinois Motor Fuel Use Tax without the multi-state reporting benefits.

The Application Process and Form MFUT-15

To open an account, you must complete Form MFUT-15, the Application for Motor Fuel Use Tax License and Decals. This form can be filed electronically through MyTax Illinois, the state's online tax portal. During registration, you must provide your Federal Employer Identification Number (FEIN) or Social Security Number, your USDOT number, and a physical Illinois business address. Unlike some states that charge a high flat fee, Illinois provides the IFTA license and the initial set of two decals for a fee of $0.00, though you must remain in good standing with all state tax liabilities to receive them. Processing times typically range from 7 to 14 business days.

Receiving and Displaying IFTA Decals

Once your application is approved, the IDOR will issue one IFTA license and two decals for each qualified motor vehicle. The license is a paper document that must be photocopied; the original should be kept in your business records while a copy must be placed in the cab of each vehicle. The two decals must be permanently affixed to the exterior of the cab, one on each side. These decals are valid for one calendar year, expiring on December 31. Illinois provides a two-month grace period through the end of February for displaying the new year's decals, provided you have already submitted your renewal application by December 31.

Quarterly Tax Filing Requirements

Illinois IFTA licensees are required to file Form IFTA-100 (IFTA Quarterly Fuel Tax Return) and Form IFTA-101 (IFTA Quarterly Fuel Tax Schedule) four times per year. The deadlines are April 30, July 31, October 31, and January 31. On these forms, you must report total miles traveled in all jurisdictions and total gallons of fuel consumed. Even if you did not operate your vehicle during a specific quarter, the state requires you to file a 'Zero Report' to avoid a $50.00 late filing penalty or 10% of the tax due, whichever is greater. Failure to file can lead to the revocation of your IFTA license and your IRP registration.

Record Keeping and Audit Standards

The Illinois Department of Revenue requires carriers to maintain detailed records for a minimum of four years from the filing date. These records must include Individual Vehicle Mileage Records (IVMR), which track the date of trip, trip origin and destination, routes traveled, and odometer readings at state lines. You must also keep original receipts or invoices for all tax-paid fuel purchases. Receipts must clearly show the number of gallons, the type of fuel, the price per gallon, and the specific vehicle unit number. Inadequate record-keeping often results in the disallowance of tax-paid credits during an audit, which can cost carriers thousands of dollars in back taxes and interest.

Calculating Tax Due or Credits

The tax you owe is calculated by determining the total fuel consumed in each jurisdiction based on your fleet's average MPG. You then compare the tax-paid fuel purchased in that state against the tax consumed. For example, if the Illinois tax rate is $0.47 per gallon for diesel and your vehicle consumed 1,000 gallons in Illinois but you only purchased 800 gallons there, you owe tax on the 200-gallon difference. Conversely, if you purchased more fuel in a state than you consumed, you will receive a credit. These credits can be used to offset liabilities in other states or carried forward to future quarters.

IFTA Renewal and Account Maintenance

Annual renewal in Illinois is performed through the MyTax Illinois portal. Renewals open in October for the following calendar year. To be eligible for renewal, you must have filed all quarterly reports for the previous four quarters and paid all outstanding tax liabilities. If your account is flagged for missing returns, the system will block your decal order. It is also your responsibility to update the IDOR if you change your business name, address, or the number of vehicles in your fleet. Closing an account requires filing a final tax return and checking the 'Cancel License' box on Form IFTA-100.

Sources

Illinois Department of Revenue - Motor Fuel Use Tax (2024) — https://tax.illinois.gov/business/registration/motorfuel.html International Fuel Tax Association, Inc. (IFTA) (2025) — https://www.iftach.org/ FMCSA - International Fuel Tax Agreement (2024) — https://www.fmcsa.dot.gov/registration/licensing/international-fuel-tax-agreement-ifta

Frequently asked

What is the cost of IFTA decals in Illinois?

Currently, the Illinois Department of Revenue does not charge a fee for IFTA licenses or the initial set of annual decals. However, carriers must be registered for the Motor Fuel Use Tax and be in compliance with all state filings to receive them.

What happens if I miss the IFTA filing deadline in Illinois?

Missing the quarterly deadline results in a penalty of $50.00 or 10% of the net tax due, whichever is greater. Interest is also charged at a rate of 1% per month on any unpaid tax balance.

Can I use a temporary permit instead of registering for IFTA?

Yes, if you do not wish to register for IFTA, you must purchase a $40.00 Single Trip Permit for each state you enter. In Illinois, these permits are valid for 96 hours and are more expensive than an annual license for regular interstate carriers.

Do I need IFTA for a truck that stays under 26,000 lbs?

No, if your vehicle's gross vehicle weight (GVW) and registered weight are both 26,000 lbs or less, and it only has two axles, it does not meet the definition of a qualified motor vehicle under IFTA rules.

How do I add more trucks to my Illinois IFTA account?

You can request additional decals at any time during the year by logging into your MyTax Illinois account and submitting a request for additional decals. The state will mail the new decals to your primary business address.