How to Set Up IFTA in Maryland

To set up an International Fuel Tax Agreement (IFTA) account in Maryland, you must register through the Comptroller of Maryland’s Revenue Administration Division. You qualify if your business is based in Maryland, your records are maintained or accessible in the state, and you operate qualified motor vehicles in at least one other IFTA jurisdiction. A qualified vehicle is defined as having two axles and a gross vehicle weight (GVW) over 26,000 pounds, three or more axles regardless of weight, or a combination weight exceeding 26,000 pounds. Once registered, you will receive an IFTA license and two decals for each qualified vehicle, which must be renewed annually. The system allows you to report fuel consumed and miles driven across all member jurisdictions on a single quarterly tax return. DispatchTool assists Maryland carriers by centralizing trip data and mileage by state, simplifying the calculation of totals required for your quarterly Maryland IFTA filings. You can create a DispatchTool account to start organizing your trip records for easier tax compliance.

Confirming Maryland Nexus and Vehicle Eligibility

Before applying, you must verify that Maryland is your base jurisdiction. According to the Comptroller of Maryland, your fleet must be registered with the Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA) and have a physical place of business in the state. The vehicles must be used for the transportation of persons or property. Vehicles used solely for recreation are exempt. If your vehicle has a registered gross weight of 26,001 pounds or more, or if the power unit has three or more axles, you are legally required to carry IFTA credentials when traveling outside Maryland into other U.S. states or Canadian provinces.

The Maryland IFTA Application Process

Carriers must complete Form IFTA-1, the International Fuel Tax Agreement License Application. Unlike some states that charge high registration fees, Maryland does not currently charge a fee for the IFTA license itself, but there is a cost of $5.00 per set of two decals. You must list the number of decals required for your fleet on the application. The application requires your Federal Employer Identification Number (FEIN) or Social Security Number (SSN), your USDOT number, and a valid Maryland MVA fleet account number. Processing typically takes 7 to 14 business days once the Revenue Administration Division receives the completed paperwork.

Quarterly Filing Deadlines and Requirements

Maryland IFTA returns must be filed four times per year. The deadlines are strictly enforced: April 30 for the first quarter, July 31 for the second, October 31 for the third, and January 31 for the fourth. Even if you did not operate your vehicle during a specific quarter, the Comptroller requires you to file a 'zero' return. Failure to file by the due date 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, calculated from the date the tax was originally due until the date paid.

Record Keeping and Audit Compliance

Under IFTA articles of agreement, Maryland licensees must maintain detailed records for a period of four years from the filing date. You are required to keep Individual Vehicle Distance Records (IVDR) that show the date of the trip, trip origin and destination, routes of travel, beginning and ending odometer readings, and total distance traveled in each jurisdiction. You must also retain original receipts for all tax-paid fuel purchases. Photocopies are generally not accepted during an audit. These records must verify the information reported on your quarterly tax returns and demonstrate that all applicable fuel taxes have been paid to the correct jurisdictions.

Annual License and Decal Renewal

Maryland IFTA licenses and decals expire on December 31 of each year. The Comptroller provides a two-month grace period through February 28 of the following year, provided you have submitted your renewal application by December 31. During this grace period, you may display either the previous year's decals or the new year's decals. To be eligible for renewal, your account must be in good standing with no delinquent tax returns or outstanding balances. If you add a new vehicle to your fleet mid-year, you must submit a supplemental application to receive additional decals at the $5.00 per set rate.

Electronic Filing via Maryland's IFTA Portal

Maryland encourages carriers to use the IFTA e-File system for faster processing. Through the Comptroller's online portal, you can file your quarterly tax returns, pay taxes due via Electronic Funds Transfer (EFT), and request additional decals. Electronic filing reduces calculation errors that frequently occur on paper forms. When filing, you must enter the total miles driven in Maryland, the total miles driven in all other jurisdictions, and the total gallons of fuel purchased. The system automatically applies the current tax rates for each jurisdiction to calculate your net tax due or credit.

Sources

Comptroller of Maryland - Motor Fuel Tax (2024) — https://www.marylandtaxes.gov/business/motor-fuel/index.php IFTA, Inc. - Maryland Jurisdiction Information (2024) — https://www.iftach.org/ Maryland Department of Transportation MVA (2024) — https://mva.maryland.gov/businesses/Pages/default.aspx

Frequently asked

What is the cost for Maryland IFTA decals?

Maryland charges $5.00 for each set of two decals. Each qualified motor vehicle in your fleet requires one set of decals, which must be placed on both sides of the cab.

How long does it take to get Maryland IFTA stickers?

Once your application is received and processed by the Comptroller of Maryland, it typically takes 7 to 14 business days for the decals to arrive by mail.

What happens if I forget to file my Maryland IFTA return?

Late filing triggers a penalty of $50.00 or 10% of the tax due, whichever is greater. Additionally, interest accrues at a rate of 1% per month on the unpaid tax balance.

Do I need IFTA if I only drive within Maryland?

No, if you operate exclusively within the state of Maryland, you do not need an IFTA license. IFTA is only required for qualified motor vehicles that travel into other member jurisdictions.

Can I get a temporary IFTA permit in Maryland?

Yes, if you need to travel immediately and do not have an IFTA license, you can purchase a 72-hour trip permit for $70.00 to cover fuel tax requirements temporarily.