Not all miles cost the same in IFTA taxes. A mile driven in Pennsylvania costs you over four times more in fuel tax than a mile driven in Mississippi. For drivers running regular multi-state routes, knowing which states are expensive and which are cheap — and planning fuel stops accordingly — can mean hundreds of dollars per quarter.
The Most Expensive IFTA States (Q1 2026 Diesel)
These states have the highest diesel IFTA rates. Every mile you drive here consumes a larger share of your quarterly tax budget:
| State | Diesel Rate | Notes |
|---|---|---|
| Pennsylvania (PA) | $0.7410/gal | Highest diesel rate in the US |
| Indiana (IN) | $0.5400/gal | Major I-70/I-65 freight corridor |
| Washington (WA) | $0.4940/gal | West Coast freight hub |
| New Jersey (NJ) | $0.4850/gal | Rate up 4.2¢ in Q1 2026 |
| Ohio (OH) | $0.4700/gal | Major crossroads state |
| Illinois (IL) | $0.4670/gal | Chicago freight hub |
| Connecticut (CT) | $0.4610/gal | Northeast corridor |
| California (CA) | $0.3890/gal diesel / $0.5790 gas | Highest gasoline rate in US |
The Cheapest IFTA States (Q1 2026 Diesel)
These states give you the lowest fuel tax cost per mile driven and the best credit-generation per gallon purchased:
| State | Diesel Rate | Notes |
|---|---|---|
| Mississippi (MS) | $0.1800/gal | Lowest diesel rate in the US |
| Oklahoma (OK) | $0.1900/gal | I-40 corridor fuel stop |
| Missouri (MO) | $0.1950/gal | Central crossroads |
| Texas (TX) | $0.2000/gal | Major interstate fuel state |
| Louisiana (LA) | $0.2000/gal | Gulf Coast routes |
| Colorado (CO) | $0.2050/gal | Mountain West gateway |
| Oregon (OR) | $0.0000/gal | Weight-mile tax instead of per-gallon |
The Pennsylvania Problem
Pennsylvania deserves special mention because it combines the highest diesel rate in the US ($0.741/gal) with some of the most heavily-used freight corridors in the country. I-80 crosses Pennsylvania east to west. I-78, I-76, and I-81 are major north-south freight routes. Most East Coast carriers cannot realistically route around Pennsylvania.
For a truck consuming 100 gallons in Pennsylvania, the IFTA tax is $74.10 to Pennsylvania alone. The same 100 gallons in Mississippi owes $18.00. The $56.10 difference per 100 gallons is real money across a quarter of driving. The strategic response is to carry as much fuel into Pennsylvania as possible from cheaper neighboring states (New York at $0.259, Maryland at $0.368, or Ohio at $0.470 — all cheaper than PA).
Rate Differences by Region
Northeast: Generally the most expensive IFTA region. Pennsylvania, New Jersey, Indiana, Ohio, Illinois, and Connecticut all exceed $0.40/gal. The Northeast also has two surcharge states (Virginia and New York) adding mandatory extra charges.
South and Gulf Coast: Consistently the cheapest region. Mississippi, Oklahoma, Texas, Louisiana, Missouri, and Arkansas form a block of sub-$0.30 rates that make this region excellent for strategic fueling before heading north or east.
West: Mixed. California is expensive at $0.389/gal diesel. Washington at $0.494/gal is one of the highest. But Nevada ($0.270/gal), Arizona ($0.260/gal), and Colorado ($0.205/gal) are relatively cheap, making the Mountain West a reasonable fueling corridor.
Midwest: Highly variable. Indiana ($0.540) and Illinois ($0.467) are very expensive. But Missouri ($0.195), Kansas ($0.260), Nebraska ($0.283), and Iowa ($0.325) are moderate to cheap.
How Rate Differences Affect Your Quarterly Bill
Here is a concrete illustration. Two identical trucks drive 10,000 miles each in Q2 2026, split evenly between Texas and Pennsylvania (5,000 miles each). Both have a fleet MPG of 6.5. The only difference is fueling strategy:
- Truck A buys all 1,538 gallons in Pennsylvania (expensive)
- Truck B buys all 1,538 gallons in Texas (cheap)
In both cases, each truck consumes roughly 769 gallons in Texas and 769 gallons in Pennsylvania based on miles driven. The IFTA tax owed to Pennsylvania is the same for both trucks ($570 based on consumed gallons). But Truck A pre-paid at $0.741/gal (over-paying PA) while Truck B pre-paid at $0.200/gal (generating a TX credit). Truck B's out-of-pocket cost at the pump was dramatically lower per gallon, and the quarterly net IFTA payment reflects that.
Use the Rate Table Every Quarter
Rates change quarterly — sometimes significantly. New Jersey's rate jumped 4.2 cents in Q1 2026. Michigan's increased 1.7 cents. The ranking between states shifts with each quarterly update. Check our full tax rates page at the start of each new quarter to update your fueling strategy. The state that was second-cheapest last quarter may have moved up the ranking after a rate increase.