International Fuel Tax Agreement (IFTA) Registration in Michigan

To set up an International Fuel Tax Agreement (IFTA) account in Michigan, you must register through the Michigan Department of Treasury. This agreement allows motor carriers operating in multiple jurisdictions to report and pay fuel taxes through a single base state. Carriers qualify if their Michigan-based vehicle has two axles and a gross vehicle weight exceeding 26,000 pounds, has three or more axles regardless of weight, or is used in a combination with a total weight exceeding 26,000 pounds. All operations must involve interstate travel to require an IFTA license. Michigan requires all new applicants to submit Form 2390, the IFTA License Application, either online via the Michigan Treasury Online (MTO) portal or by mail. Once approved, you will receive one license and two decals for each qualified motor vehicle. DispatchTool helps carriers manage this process by automatically tracking miles driven in Michigan and across state lines, generating the precise distance and fuel data needed for quarterly filings. To simplify your tax reporting, you can create a DispatchTool account to log trip data for your next Michigan IFTA return.

Eligibility for Michigan IFTA Registration

A carrier is eligible for IFTA in Michigan if the business is based in Michigan, fleet records are maintained or can be made available in the state, and the vehicles operate in at least one other IFTA jurisdiction. According to the Michigan Department of Treasury, a 'qualified motor vehicle' includes any power unit used, designed, or maintained for the transportation of persons or property that exceeds 26,000 pounds Gross Vehicle Weight (GVW) or Registered Gross Vehicle Weight. Vehicles with three or more axles, regardless of weight, also qualify. Farm vehicles and recreational vehicles are generally exempt unless they are used for commercial purposes.

Application Procedures and Required Documentation

Carriers must complete Michigan Form 2390 to apply for an initial license. The application requires your Federal Employer Identification Number (FEIN) or Social Security Number (SSN), your USDOT number, and a physical Michigan address. If you are a new registrant, you may be required to provide proof of residency, such as a Michigan driver's license or utility bills. The state does not charge a fee for the annual IFTA license; however, there is a $9.20 charge for each set of two decals required per vehicle. Applications can be processed online through the Michigan Treasury Online (MTO) system, which typically offers faster turnaround than paper submissions.

Quarterly Reporting Cycles and Due Dates

Once registered, Michigan IFTA licensees must file tax returns every quarter, even if no taxable miles were driven during the period. The reporting deadlines are fixed: 1st Quarter (Jan-Mar) is due April 30; 2nd Quarter (Apr-Jun) is due July 31; 3rd Quarter (Jul-Sep) is due October 31; and 4th Quarter (Oct-Dec) is due January 31. If the due date falls on a weekend or state holiday, the return is due the next business day. Failure to file by these dates results in a penalty of $50.00 or 10% of the net tax due, whichever is greater, according to the Michigan Department of Treasury.

Record Keeping and Audit Requirements

Michigan law requires carriers to maintain detailed records for four years from the filing date. These records must include Individual Vehicle Mileage Records (IVMR) showing the date of the trip, origin and destination, routes of travel, and odometer readings at state lines. You must also keep all original fuel receipts or invoices that identify the seller, the date of purchase, the number of gallons, and the vehicle plate number. The IFTA Articles of Agreement stipulate that any licensee may be audited by the base jurisdiction to verify the accuracy of reported miles and fuel consumption.

Michigan IFTA Decal Placement

Upon approval of your application, the Department of Treasury issues one IFTA license and a set of two decals for every qualified vehicle. The license remains in the cab of the truck (photocopies are acceptable), while the decals must be affixed to the exterior of the vehicle. Specifically, one decal must be placed on each side of the exterior of the cab. In Michigan, failure to display valid decals while operating a qualified motor vehicle can result in a citation and a fine, often ranging from $100 to $500 depending on local court costs and prior violations.

Renewing Your Michigan IFTA License

IFTA licenses and decals expire on December 31 of each year. Michigan provides a grace period through February of the following year, provided the carrier has submitted their renewal application by December 31. To be eligible for renewal, a carrier must be in good standing, meaning all quarterly tax returns have been filed and all tax liabilities, including interest and penalties, have been paid in full. Renewal applications are typically handled through the MTO portal, where carriers verify their fleet size and pay the $9.20 per-vehicle decal fee for the upcoming calendar year.

Understanding Interest and Late Penalties

Late filings or underpayments attract significant costs under Michigan statutes. Interest is charged on all taxes due to each jurisdiction at a rate of 1% per month, or a fraction thereof. The Michigan Department of Treasury calculates this interest from the date the tax was due until the date the payment is received. Because IFTA involves multiple jurisdictions, a single late return can result in interest charges accruing for 50+ different states and provinces simultaneously, making accurate tracking and timely submission a financial priority for owner-operators.

Sources

Michigan Department of Treasury (2024) — https://www.michigan.gov/taxes/business-taxes/ifta IFTA, Inc. Articles of Agreement (2025) — https://www.iftach.org/manuals/2025/AA/Articles%20of%20Agreement%20January%202025.pdf Michigan Legislature - Motor Carrier Fuel Tax Act (1980) — http://www.legislature.mi.gov/doc.aspx?mcl-Act-119-of-1980

Frequently asked

How much does it cost to get IFTA in Michigan?

There is no fee for the IFTA license itself in Michigan, but you must pay $9.20 for each set of two decals required for your qualified motor vehicles.

Can I get a temporary IFTA permit in Michigan?

Yes, if you are not registered for IFTA, you must purchase a 5-day fuel tax permit for $20.00 before entering Michigan. These are available through various permit services and are required for each state you pass through if you do not have a permanent IFTA license.

What happens if I lose my Michigan IFTA decals?

If your decals are lost or stolen, you must apply for replacements through the Michigan Treasury Online (MTO) portal. The replacement fee is $9.20 per set of two decals.

Do I need IFTA for a truck that only stays in Michigan?

No. If your vehicle operates 100% of the time within Michigan and never crosses state or provincial lines, you do not need an IFTA license. However, you must still comply with Michigan's Intrastate Motor Fuel Tax requirements if applicable.

How long does it take to get Michigan IFTA decals?

Applications processed through the Michigan Treasury Online (MTO) portal are typically reviewed within 7 to 10 business days, though mail delivery of the physical decals may take an additional 5 to 7 days.