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Fuel tax holiday or dyed diesel in the tank: what to report on your IFTA return

A fuel tax holiday does not cancel your IFTA return. You still report every mile and every gallon; what changes is how the holiday state's miles and fuel are taxed. For Georgia's suspension (September 29 through November 5, 2026), Georgia miles go in total miles but not taxable miles and tax-free Georgia gallons go in total gallons but not tax-paid gallons, while Ohio's cut (October 4, 2026 through January 2, 2027) shows up as a split rate. Red-dyed diesel is different: the federal order of October 5, 2026 does not change state fuel tax, and IFTA, Inc. says most states that allow it on the road still tax it, so you pay that tax through the return.

The return for the third quarter of 2026 is due Monday, November 2, 2026, and it already carries the first two days of Georgia's suspension and any dyed diesel you burned in late September. The fuel you buy now lands on the fourth quarter return, due Monday, February 1, 2027, so the receipts and dated mileage you keep this month decide what that return can show.

The Georgia and Ohio cuts are real, and you do not apply for them

Georgia's guidance says IFTA carriers traveling in Georgia are exempt from its motor fuel excise tax for the suspension period. Ohio's diesel rate is down from 47 cents a gallon to one-hundredth of one cent. Neither state's notice asks you to apply for anything: the relief comes through how those miles and gallons are reported on the return you already send every quarter. On 100 gallons burned on Ohio roads, that is one cent of Ohio tax instead of $47.

Why a tax break at the pump can still leave tax on the return

IFTA settles fuel tax by where you drove, not where you fueled. The return works out the gallons you burned in each state from your miles and your fleet miles per gallon, then gives you credit for the gallons you bought in that state with its tax in the price. The IFTA Articles of Agreement (R1010.100) allow that tax-paid credit only when the purchase price includes fuel tax paid to a member jurisdiction. Fuel bought with no state tax in the price earns no credit, so the miles you run on it in other states are still taxed at those states' rates. The relief follows the miles you drive in the holiday state, not the fuel stop you make there.

The states have not all done the same thing. Georgia suspended its motor fuel excise tax, so its guidance treats Georgia miles in the suspension period as non-taxable. Ohio kept the tax and cut the gasoline and diesel rate to one-hundredth of one cent per gallon, so Ohio miles stay on the return at a split rate. Indiana's holiday covers gasoline and gasohol only: its notice says the reduced rate does not apply to diesel fuel. And most state orders on red-dyed diesel lift a penalty, not the tax.

The federal piece is Executive Order 14435, signed October 5, 2026. It tells the Treasury Secretary to decide within 5 days whether the law allows relief and, if so, to defer payment of the federal fuel taxes it names (26 U.S.C. 4041) incurred from October 5 through December 31, 2026, without penalties or interest. It also has Treasury direct the IRS to announce that it will not impose the dyed fuel penalty of 26 U.S.C. 6715 when dyed diesel is sold for use or used on the highway in that period. Defer is the order's word: Treasury's guidance has to name the date by which the postponed taxes must be paid. The federal tax on diesel is 24.4 cents a gallon.

IFTA, Inc.'s executive director spelled out what the order does not do in a letter of October 8, 2026. It does not override state laws prohibiting dyed diesel on public highways, each state must issue its own order to permit it, and a carrier that buys dyed diesel where it is allowed may face penalties on entering a state where it is not. Most states that have issued orders do not exempt dyed diesel from fuel use tax. The letter counted 11 jurisdictions with orders at that date and said carriers must wait for Treasury's guidance to understand the order's full effect.

What to do, in order

1
Sort the quarter's fuel into three piles
Go through your receipts and fuel card listing and mark each purchase: clear diesel with state tax in the price, clear diesel bought tax-free in a holiday state, or dyed diesel. Only the first pile can go in the tax-paid column. Georgia's guidance says to report both tax-free and tax-paid purchases, so if you cannot tell from a Georgia receipt whether tax was charged, ask the seller or Georgia's Motor Fuel Unit at 1-877-423-6711. Keep every receipt either way; what a receipt has to show is in how to file IFTA for one truck.
2
Mark your Georgia and Ohio miles by date
Pull state-by-state mileage from your ELD with dates, not just quarter totals. Georgia miles from September 29, 2026 at 12:00 a.m. through November 5, 2026 at 11:59 p.m. have to be kept apart from Georgia miles outside that window. Ohio miles from 12:01 a.m. on October 4, 2026 through 11:59 p.m. on January 2, 2027 have to be kept apart the same way. Georgia's order ends November 5 unless the Governor renews it again, so check the end date before you close the fourth quarter numbers.
3
Report every mile and every gallon
Total miles and total gallons set the miles per gallon the whole return runs on, so nothing is left off. Georgia, Ohio and IFTA, Inc. all say it: all miles traveled and all fuel purchased are reported, tax-free and dyed gallons included. Leaving gallons off makes your miles per gallon look better than it was and understates the tax everywhere else on the return. That is the kind of error an audit corrects with penalty and interest.
4
Report Georgia the way Georgia's guidance says
For activity from September 29 through November 5, 2026, Georgia's October 6 guidance gives four lines. Report Georgia miles in total miles and exclude them from total taxable miles. Report tax-free Georgia gallons in total gallons and exclude them from tax-paid gallons. On the third quarter return that covers only September 29 and 30. Your base state's form may label the columns differently (the Texas return has a Total IFTA Miles column and a Taxable Miles column for each state), so if you cannot see where non-taxable miles go, call your base state before you send it.
5
Expect a split rate for Ohio
Ohio did not zero its tax. It cut the gasoline and diesel rate to one-hundredth of one cent per gallon, and its notice says returns are still required, all miles and fuel are reported, and the return will show a split rate for the fourth quarter of 2026 and the first quarter of 2027. A split rate means the part of the quarter before the change and the part after are each taxed at their own rate, which is why the dated mileage in step 2 matters. Keep your Ohio fuel purchases separated at the same dates. Nothing about Ohio changes on the third quarter return.
6
Keep dyed diesel out of the tax-paid column
If red-dyed diesel went into a highway truck, count those gallons in total gallons but do not claim them as tax-paid, unless the tax was paid separately through another return in that state. IFTA, Inc.'s October 8 letter says the carrier then pays the applicable state fuel taxes through the IFTA return. The Texas Comptroller's October 2 letter is specific: dyed diesel bought tax-free goes in Total Gallons Purchased but not in Purchased Gallons for Texas. At the Texas rate of 20 cents a gallon, 100 gallons of dyed diesel burned on Texas roads adds $20 of Texas tax to the return.
7
Read the state order before dyed diesel goes in the tank
A state order is not a general permission. Arkansas's order, in effect September 30 through October 30, 2026, covers only Arkansas-registered farm and forestry vehicles and excludes any vehicle licensed under IFTA; Tennessee's, through October 31, 2026, covers farm and forestry hauling. IFTA, Inc. posts each order under Important Notices on iftach.org, and without one that covers you, you may still face that state's fines. On the federal side, IRS Publication 510 says the operator of the vehicle is generally liable for the 24.4 cents a gallon when dyed diesel goes into a highway truck's tank, and the order is about deferring federal tax, not forgiving it. The American Trucking Associations advised carriers to delay on-road use of dyed diesel until Treasury issues its guidance, and IFTA's executive director wrote that the advice appears accurate.
8
Send the return with full payment by the due date
The third quarter return is due Monday, November 2, 2026, because October 31 falls on a Saturday, and the fourth quarter return is due Monday, February 1, 2027 (IFTA Articles of Agreement R960.100). Full payment of the tax is due with it. Look at IFTA's Important Notices again the week you send it, because states are still adding, extending and ending orders. Keep the receipts and the dated mileage with your copy of the return: Georgia's guidance tells carriers to maintain all mileage and fuel records for the suspension period. If the date has already passed, see what a missed IFTA deadline costs.

What this costs

Reporting it yourself

$0 plus your time

Nothing new to buy: it is the same quarterly return, with the Georgia, Ohio and dyed diesel entries above. You pay your base state whatever tax the return works out.

State tax on dyed diesel burned on the highway

still owed

Paid through the return in most states that allow dyed diesel on the road, per IFTA, Inc.'s October 8, 2026 letter. In Texas that is 20 cents a gallon.

Federal tax on that dyed diesel

24.4 cents a gallon

Deferred, not forgiven, and only if Treasury finds the relief in Executive Order 14435 is authorized, for October 5 through December 31, 2026. Treasury's guidance sets the date it must be paid.

Late or underpaid return

$50 or 10%

Your base state may assess $50 or 10 percent of the delinquent tax, whichever is greater (IFTA Articles of Agreement R1220.100), plus interest.

IFTA return prepared for you (standalone, not on a plan)

$119/return

For one truck, from your ELD mileage export and fuel records; additional trucks are priced on the service page. Credited to a plan within 60 days. Included on the annual membership; month-to-month members pay $49 a return. You send it to your base state and pay the tax there yourself.

Prepare my IFTA return: $119

TenFour membership

$99/mo

Annual plan for one truck; $119 month to month. Each additional truck $59/month, every driver included, for 1 to 6 trucks; 7 or more is custom pricing. Quarterly IFTA returns are prepared for you on the annual plan, alongside every other recurring deadline.

Get Started

When you do not need us

If you ran no miles in Georgia or Ohio inside those windows and never put dyed diesel in a highway truck, nothing about your return changes this quarter. If you did, the state instructions above are the whole job, and a carrier whose ELD exports miles by date can do it in an evening with the fuel card listing. Your base state's IFTA office is the place for questions about its form. Nobody has to buy a service to get the Georgia or Ohio relief.

Where we are useful is the reconciliation. From your ELD mileage export and fuel records we prepare the quarterly return, which this quarter means cutting Georgia and Ohio miles at the right dates, keeping tax-free and dyed gallons out of the tax-paid column and checking miles against gallons state by state, and a person reviews it before it reaches you. You send the return to your base state and pay the tax there yourself. We do not decide whether dyed diesel is worth it for your operation, and we are not tax advisors.

See how IFTA return preparation works

When this is not your situation: If you run only inside Texas and hold no IFTA license, there is no IFTA return to put this on: ask the Texas Comptroller how to report and pay state tax on dyed diesel used on the road. If you are in an IFTA audit or disputing an assessment, that is between you and your base state, and a tax professional if the amount is large. Tell us either one up front and we will say plainly whether we are the right help.

Questions people ask at this point

Do I still have to file IFTA during a fuel tax holiday?

Yes. Georgia, Ohio and Indiana each say returns are still required for the quarters their holidays touch, and the IFTA Articles of Agreement (R930.100) require a return every quarter even if no taxable fuel was used. All miles and all fuel go on it so that your miles per gallon is right.

How do I report a fuel tax holiday on my IFTA return?

It depends on what the state did. Georgia suspended its tax, so Georgia miles in the suspension period go in total miles but not taxable miles, and tax-free Georgia gallons go in total gallons but not tax-paid gallons. Ohio cut its rate instead, so Ohio miles and gallons stay on the return at a split rate. Either way, every mile and every gallon is still reported.

How do I report Georgia miles on IFTA during the fuel tax suspension?

Georgia's October 6, 2026 guidance covers September 29, 2026 at 12:00 a.m. through November 5, 2026 at 11:59 p.m. Report Georgia miles in total miles, exclude them from total taxable miles, report tax-free Georgia gallons in total gallons and exclude them from tax-paid gallons. Georgia calls these non-IFTA miles and tells carriers to keep all mileage and fuel records for the period. If your base state's form has more than one place they could go, ask your base state which to use.

How does the Ohio fuel tax holiday affect IFTA?

From 12:01 a.m. on October 4, 2026 through 11:59 p.m. on January 2, 2027, Ohio's rate is one-hundredth of one cent per gallon instead of 38.5 cents for gasoline and 47 cents for diesel. Ohio says returns are still required, all miles traveled and fuel purchased are reported, and the return will show a split rate for the fourth quarter of 2026 and the first quarter of 2027.

Is red dyed diesel legal on the highway now?

Not everywhere, and not for everyone. The federal order of October 5, 2026 deals with the federal tax and the federal penalty for October 5 through December 31, 2026, on terms Treasury sets. IFTA, Inc. says it does not override state laws, each state must issue its own order, and a carrier may face penalties on entering a state that has not. Several state orders cover only farm and forestry hauling, and the federal penalty is normally the greater of $1,000 or $10 a gallon.

Do I pay state fuel tax on dyed diesel through IFTA?

In most states that allow it, yes. IFTA, Inc.'s letter of October 8, 2026 says most states with orders do not exempt dyed diesel from fuel use tax, the gallons cannot be claimed as a tax-paid purchase, and the carrier pays the applicable state fuel taxes through the IFTA return. Nebraska and Georgia are the exceptions the letter names. For Texas, the Comptroller says to count the gallons in Total Gallons Purchased but not in Purchased Gallons.

Does Texas have a fuel tax holiday?

No. The Governor's proclamation of September 28, 2026 suspended Texas's restrictions and penalties on dyed diesel; it did not suspend the diesel tax. The Comptroller's October 2 letter says the proclamation does not change licensure, reporting obligations or the taxability rules for dyed diesel, and the Texas diesel rate on the IFTA tax rate matrix is 20 cents a gallon.

Is the federal tax on red dyed diesel forgiven or only deferred?

Only deferred, and only if Treasury finds the law allows it. Executive Order 14435 tells Treasury to defer payment of the federal taxes it names for October 5 through December 31, 2026, without penalties or interest, and to publish the date by which postponed taxes must be paid. It also tells Treasury to explore ways, including legislation, to eliminate the obligation. Until that happens, treat the 24.4 cents a gallon as owed later.

Sources

Last reviewed October 11, 2026. TenFour is a compliance service, not a law firm, and is not affiliated with FMCSA or any government agency. Regulations and enforcement postures change, verify anything time-sensitive against the sources above before you act on it.

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