Mississippi IFTA Fuel Tax Compliance and Reporting

The Mississippi Department of Revenue (DOR) manages the International Fuel Tax Agreement (IFTA) for motor carriers based in the state. Under the Mississippi Code Title 27, Chapter 61, any motor carrier operating a qualified motor vehicle in two or more member jurisdictions must report fuel usage and pay applicable taxes. A qualified vehicle is defined as a power unit having two axles and a gross vehicle weight (GVW) or registered gross vehicle weight exceeding 26,000 pounds, a power unit having three or more axles regardless of weight, or a combination exceeding 26,000 pounds GVW. Mississippi-based carriers must obtain an IFTA license and two decals for each vehicle to ensure legal operation across the United States and Canadian provinces. Filing accurate reports requires precise tracking of total miles driven and total gallons of fuel purchased in every jurisdiction. DispatchTool streamlines this process by automatically logging interstate mileage and centralizing fuel receipts for owner-operators and fleets. Users can export categorized trip data to ensure that the Mississippi DOR Form 85-001 is populated with exact figures, reducing the risk of audit penalties. You can create a DispatchTool account to start organizing your quarterly mileage and fuel data for Mississippi reporting.

Mississippi IFTA Registration and Licensing

To register for IFTA in Mississippi, a carrier must have an established place of business in the state, maintain all operational records at a Mississippi location, and operate qualified motor vehicles in at least one other IFTA jurisdiction. The Mississippi Department of Revenue does not charge a fee for the annual IFTA license; however, there is a $10.00 fee per set of two decals. One decal must be placed on the lower rear exterior of each side of the vehicle cab. If a carrier operates without a valid license or decals, they may be subject to a fine of $100.00 to $500.00 under Mississippi law. Renewal for the following year begins in October, and new decals must be displayed by January 1st to avoid enforcement action.

Quarterly Filing Deadlines and Interest Charges

IFTA reports in Mississippi are due by the last day of the month following the close of the quarter. For the first quarter (January-March), the deadline is April 30. The second quarter (April-June) is due July 31. The third quarter (July-September) is due October 31, and the fourth quarter (October-December) is due January 31. If the deadline falls on a weekend or a legal holiday, the report is considered timely if postmarked or filed electronically on the next business day. Late filings incur a penalty of $50.00 or 10% of the net tax due, whichever is greater. Additionally, interest is charged on the underpayment at a rate of 1% per month, as specified by the IFTA Articles of Agreement.

Mississippi Fuel Tax Rates and Surcharges

As of 2024, the Mississippi excise tax rate on diesel fuel is $0.18 per gallon, and the gasoline tax rate is $0.18 per gallon. These rates are among the lowest in the Southeastern United States compared to neighbors like Alabama or Arkansas. Mississippi does not currently impose a fuel surcharge on top of the base excise tax. When filing the quarterly return, carriers calculate the tax due to each jurisdiction by multiplying the net taxable gallons by that state's specific rate. If a carrier purchased more fuel in Mississippi than they consumed there, they may receive a credit that can be applied to taxes owed in other states or requested as a refund.

Record Keeping Requirements for Audits

The Mississippi Department of Revenue requires carriers to maintain detailed records for a minimum of four years from the filing date. Required documentation includes Individual Vehicle Distance Records (IVDR) that list the date of trip, trip origin and destination, routes of travel, beginning and ending odometer readings, and total distance traveled by jurisdiction. For fuel, carriers must keep original receipts or invoices showing the date of purchase, name and address of the seller, number of gallons purchased, and the vehicle unit number. Summary reports must be reconciled monthly and quarterly to ensure the data matches the IFTA tax return. Failure to provide these records during an audit can result in the assessment of tax based on an average of 4.0 miles per gallon (MPG).

Online Filing via TAP (Taxpayer Access Point)

Mississippi requires all IFTA licensees to file their tax returns electronically through the Taxpayer Access Point (TAP) system. To use the system, carriers must register for a TAP account using their FEIN or SSN and their Mississippi IFTA account number. The online portal allows for the uploading of data files, electronic payment via ACH debit, and the ability to print previous returns and correspondence. Electronic filing reduces manual calculation errors and provides an immediate confirmation number. Carriers who do not have internet access must apply for a waiver from the Commissioner of Revenue to file paper returns, though these are rarely granted for modern interstate operations.

Handling Credits and Refund Claims

If the quarterly IFTA return results in a net credit—meaning the carrier paid more in fuel tax at the pump than was actually owed based on miles driven—the credit will be automatically applied to future tax liabilities. If a carrier prefers a cash refund, they must indicate this on the return or submit a written request to the Mississippi Department of Revenue. Credits expire if not used within eight calendar quarters from the date the tax was paid. Large fleets often carry credits forward to offset high-tax jurisdictions, while smaller owner-operators may request refunds to improve cash flow, especially if they primarily purchase fuel in low-tax states like Mississippi but drive in high-tax states.

Sources

Mississippi Department of Revenue (2024) — https://www.dor.ms.gov/business/ifta-international-fuel-tax-agreement International Fuel Tax Association, Inc. (2024) — https://www.iftach.org/ Mississippi Code Title 27 Chapter 61 (2023) — https://www.lexisnexis.com/hottopics/mscode/

Frequently asked

What is the penalty for not filing a Mississippi IFTA return?

The Mississippi Department of Revenue imposes a penalty of $50.00 or 10% of the total tax due, whichever is higher, for late or missing filings. In addition, interest accrues at 1% per month until the tax is paid in full.

How much does a Mississippi IFTA decal cost?

A set of two IFTA decals for one vehicle costs $10.00 in Mississippi. There is no separate fee for the IFTA license itself, which must be carried in the cab of the truck.

What vehicles are exempt from IFTA in Mississippi?

Vehicles that operate strictly within Mississippi (intrastate), recreational vehicles used for personal pleasure, and vehicles owned by the United States government or the State of Mississippi are generally exempt from IFTA requirements.

Can I get a temporary fuel permit in Mississippi?

Yes, if you do not have a permanent IFTA license, you must purchase a 72-hour temporary fuel permit for $25.00 before entering Mississippi. This permit is valid only for the state of Mississippi and does not cover other jurisdictions.

How long must I keep my Mississippi fuel receipts?

You are required by the Mississippi Department of Revenue to keep all fuel receipts and mileage records for 4 years to comply with potential audits.