IFTA Bond Guide
In certain states, motor fuel carriers participating in the International Fuel Tax Agreement (IFTA) program must file a surety bond.
Bond Overview
- Purpose: To guarantee tax payments and legal operations by interstate motor carriers
- Who Needs It: Motor fuel carriers participating in IFTA in certain states
- Required Amount: $1,000—$600,000, typically based on tax and reporting history
- Premium Rates: 0.5–25% based on credit score
Keep scrolling to learn more about the bonding process.
What Are IFTA Bonds?
Certain states require a surety bond for motor carriers who participate in the International Fuel Tax Agreement.
This ensures carriers will properly report fuel usage and mileage, as well as pay the appropriate excise taxes. It also holds carriers financially liable if they violate state-level regulations, which can vary by jurisdiction.
What Is the International Fuel Tax Agreement?
The International Fuel Tax Agreement includes the 48 contiguous U.S. states and 10 Canadian provinces.
Under IFTA, motor carriers can drive through any state and only submit one fuel tax return per quarter to their home jurisdiction. This allows for smooth transportation of goods across state lines and borders.
You need this license if your vehicle operates in two or more IFTA jurisdictions and meets any of the following conditions:
- 26,000+ lb gross weight
- 3+ axles
How Much Do IFTA Bonds Cost?
IFTA bond premiums vary based on the coverage amount and personal credit score. Most applicants pay 0.5–25% of the bond amount.
In Illinois and Arizona, coverage under $10,000 is available for instant purchase at a flat rate of $100.
Select your state below to get your free personalized quote today.
How Do IFTA Bonds Work?
An IFTA bond is a legal contract between three parties:
- Principal: The motor carrier purchasing the bond
- Obligee: The state agency requiring the bond
- Surety: The provider issuing the bond
You, as the principal, promise to uphold the bond terms and all applicable state laws.
If you break the bond terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs an IFTA Bond?
Although IFTA is a federal program, these bonds are only required for carriers based in the following states:
- Arizona
- Illinois
- Kansas
- Minnesota
- Texas
First-time applicants typically don’t need an IFTA bond. However, your state’s agency may ask you to file a bond depending on your compliance with state standards.
Your coverage amount can depend on failure to file reports on time, pay taxes or pass an audit.
How to Get an IFTA Bond
SuretyBonds.com processes most bond applications in one business day or less. Just follow these simple steps:
- Apply Online: Select your state and fill out the quote request form
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via mail or email
Upon receipt, sign and file the bond documentation with your state’s authority.
How Do I Renew My IFTA Bond?
IFTA bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders starting 90 days before your bond expires.
All you need to do is pay the renewal invoice and file any additional paperwork, if instructed.
How Do I Update My IFTA Bond Form?
If you need to make any small adjustments to your official bond form, such as name or address, contact us at [email protected] outlining the change.
If possible, we’ll issue a bond rider document to amend your overweight hauling bond free of charge.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit will likely increase your premium rate.
Learn more about how credit may impact your cost on our Surety Bond Cost FAQ page.
