How to Set Up Your IFTA Account in Montana

To set up an International Fuel Tax Agreement (IFTA) account in Montana, you must apply through the Montana Department of Transportation (MDT) Motor Carrier Services (MCS) division. This registration is mandatory for any motor carrier based in Montana that operates a qualified motor vehicle in at least one other IFTA jurisdiction. A qualified vehicle is defined 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 a combination with a combined weight exceeding 26,000 pounds. Montana does not charge a fee for the annual IFTA license or the two required vehicle decals, a policy that differs from many other states that charge between $10 and $50 per set. The registration process can be completed via the Montana MDT e-Part electronic system or by submitting Form MCS-001. DispatchTool simplifies this regulatory burden by automatically compiling the distance-by-state data and fuel purchase records required for your quarterly Montana IFTA tax returns. You can streamline your compliance workflow and reduce manual data entry errors by creating a DispatchTool account to manage your fleet's mileage tracking.

Determining Your Montana IFTA Eligibility

Before applying, you must verify that Montana is your base jurisdiction. According to the MDT, your fleet must have qualified motor vehicles that are registered in Montana and have an established place of business in the state where operational control and records are maintained. A qualified motor vehicle is one used, designed, or maintained for the transportation of persons or property and meets specific weight thresholds. If your truck weighs exactly 26,000 pounds or less and only has two axles, you are not required to participate in IFTA unless you opt-in for convenience. If you operate exclusively within Montana boundaries, you do not need an IFTA license and should instead pay tax at the pump for all operations.

The Montana IFTA Application Process

The primary method for setup is the MDT e-Part system, which is the state's online portal for motor carrier services. If you prefer paper, you must download and complete Form MCS-001, the Application for IFTA License and Decals. The form requires your Federal Employer Identification Number (FEIN) or Social Security Number, your USDOT number, and a detailed list of your equipment. Unlike many states, Montana provides the original license and the two exterior decals for each vehicle at no cost to the carrier. Once your application is processed, the MDT will mail your decals, which must be displayed on both sides of the vehicle cab. You must also carry a photocopy of the current year's IFTA license inside the cab at all times to avoid citations.

Record Keeping Requirements for Montana Carriers

Montana law requires carriers to maintain detailed records for four years from the filing date. You must track every mile driven by state or province using Individual Vehicle Distance Records (IVDR). These records must include the date of the trip, trip origin and destination, routes of travel including highway numbers (such as I-15 or I-90), and odometer readings. Additionally, you must keep all original fuel receipts or invoices. These documents must show the number of gallons purchased, the type of fuel, the price per gallon, and the location of the station. Failure to maintain these records can result in the MDT assessing tax based on a standard 4.0 miles per gallon (MPG) for the entire fleet, which often leads to significant overpayment.

Quarterly Filing Deadlines and Procedures

Once set up, you are required to file quarterly tax returns even if you had no taxable activity during the period. The deadlines are strictly enforced: April 30 for Q1, July 31 for Q2, October 31 for Q3, and January 31 for Q4. If a deadline falls on a weekend or legal holiday, the return is due the next business day. Montana requires electronic filing for most carriers through the e-Part portal. The return calculates the net tax due or credit by comparing the tax paid at the pump against the tax consumed based on mileage in each jurisdiction. If you file late, Montana imposes a penalty of $50 or 10% of the tax due, whichever is greater, plus interest charged at a rate of 1% per month.

Montana Fuel Tax Rates and Surcharges

Montana’s current fuel tax rate is $0.2975 per gallon for special fuel (diesel) and $0.33 per gallon for gasoline, as reported by the MDT for 2024-2025. When driving in other states, you will encounter varying rates. For example, neighboring Idaho may have a different rate, and states like Pennsylvania often exceed $0.70 per gallon. The IFTA system acts as a clearinghouse; if you buy 100 gallons in Montana but drive those miles in a state with a higher tax rate, you will owe the difference. Conversely, if you buy fuel in a high-tax state and drive in a low-tax state, you will receive a credit. Montana processes these credits and applies them to future quarters or issues a refund if requested for amounts over $10.

Renewing Your Montana IFTA License

IFTA licenses in Montana expire on December 31 of each year. The MDT typically opens the renewal period in October or November via the e-Part system. You must be in good standing—meaning all quarterly returns are filed and all taxes, penalties, and interest are paid—to receive your new credentials. There is a two-month grace period (January and February) for displaying the new year's decals, provided you have already submitted your renewal application. However, you must have the current year's license in the cab starting January 1. If you add a new vehicle to your fleet mid-year, you must log into e-Part to request additional decals, which Montana provides for free.

Sources

Montana Department of Transportation (2024) — https://www.mdt.mt.gov/business/mcs/ifta.aspx IFTA, Inc. (2025) — https://www.iftach.org/ Montana Code Annotated 15-70-121 (2023) — https://leg.mt.gov/bills/mca/title_0150/chapter_0700/part_0010/section_0210/0150-0700-0010-0210.html

Frequently asked

How much does it cost to get IFTA decals in Montana?

Montana is one of the few states that does not charge a fee for IFTA licenses or decals. Both the initial set and subsequent renewals are provided at $0 cost to the carrier.

What is the penalty for late IFTA filing in Montana?

The penalty for late filing is $50.00 or 10% of the total tax due, whichever is greater. Interest also accrues at a rate of 1% per month on any unpaid balance.

Do I need IFTA if I only drive in Montana?

No. If your operations are strictly intrastate (within Montana borders), you do not need an IFTA license. You simply pay the fuel tax at the time of purchase at the pump.

How long must I keep my fuel receipts in Montana?

You must retain all fuel receipts and distance records for a period of 4 years from the date the quarterly return was filed or was due to be filed.