IFTA Sticker Renewal: Grace Period, Decal Placement, and Penalties

IFTA sticker renewal runs on a fixed annual cycle: licenses and decals expire December 31, and every carrier operating qualified commercial vehicles across state or provincial lines has to renew through its base jurisdiction before that date to stay legal into the new year. If your account is in good standing, most jurisdictions let you finish the whole thing online in one session. The catch is what “good standing” means, and what happens in the weeks between filing and when the physical decals actually show up in the mail.

What Your Account Needs Before You Can Renew

Under the IFTA Articles of Agreement, a base jurisdiction will issue renewal credentials only if the license has not been revoked, suspended, or canceled, all tax returns have been filed, and all fuel use taxes, penalties, and interest have been paid in full.1International Fuel Tax Association. IFTA Articles of Agreement – R345 License Renewal In practice, that means the first three quarterly returns from the current year must already be filed and any balances cleared before you start the renewal application. The fourth-quarter return, covering October through December, is not due until January 31 of the following year, so it will not yet be filed when you renew in December. It still has to be filed on time to keep your standing clean going into the next cycle.

Outstanding balances are the most common reason a renewal stalls. IFTA jurisdictions charge interest on underpayments, and for 2026 the annual rate is 9%, calculated at one-twelfth of that rate per month. A small balance you meant to clean up can grow quickly and hold up your decals.

The Articles of Agreement also bar issuance to any applicant whose license is still under revocation in another member jurisdiction, or whose application contains a misrepresentation or omission. If your account was suspended for non-compliance, that has to be resolved with your base jurisdiction before any renewal can go through. Jurisdictions can also deny renewal to a carrier that has reported zero distance, or only base-jurisdiction distance, for three or more consecutive quarters. If your trucks have not actually left your home state in that timeframe, expect to be asked for proof of interstate travel before credentials are reissued.1International Fuel Tax Association. IFTA Articles of Agreement – R345 License Renewal

What to Have Ready Before You File

Once your account is clear, pull together what the application will ask for:

  • Your IFTA account number and USDOT number for identity verification.
  • An accurate vehicle count with VINs for every qualified motor vehicle in your fleet. Each vehicle gets one set of two decals.
  • The current business address on file with your base jurisdiction, so the physical decals arrive at the right location.
  • Fuel type information if your fleet uses anything beyond standard diesel, such as propane, natural gas, or ethanol blends.

How to Submit the Renewal

Most base jurisdictions handle IFTA renewals through their online motor carrier portal. The specific screens vary by state, but the flow is the same: log in, verify or update the VINs associated with your account, confirm how many decal sets you need, review your account information, and submit. Some jurisdictions pre-populate the vehicle list from the prior year, so you only add or remove trucks that changed.

Payment methods depend on the jurisdiction. Electronic fund transfers and credit or debit cards are the most common options online, and a handful of jurisdictions still accept mailed paper applications with a check. Decal fees are modest, though the exact amount varies.

After submission, save the confirmation code or receipt. If your renewal was filed on time and the account is in good standing, some jurisdictions automatically approve the application and queue decals for mailing; others review first. Either way, keep the confirmation number in case a question comes up during processing.2International Fuel Tax Association. Carrier Information

The January and February Grace Period

The IFTA license period runs from January 1 through December 31. Physical decals often do not arrive by New Year’s Day even when the renewal was filed on time, so the Articles of Agreement build in a two-month grace period covering January and February.3International Fuel Tax Association. IFTA Articles of Agreement – R655 Grace Period

During those two months, a carrier can legally travel through IFTA jurisdictions by displaying either valid current-year or prior-year IFTA credentials. A carrier can also operate under a valid single-trip permit issued by the jurisdiction it is traveling through.4International Fuel Tax Association. IFTA Credential Grace Period The grace period protects only carriers who have actually submitted a renewal application. If you have not filed, running on expired decals is a violation regardless of the date.

By March 1, the grace period ends. Every qualified vehicle must display the new year’s decals and carry a copy of the current IFTA license in the cab. After that, each non-compliant vehicle is exposed to penalties from whichever jurisdiction the driver happens to be passing through.

Where the Decals Go

Each qualified motor vehicle receives one pair of decals from the base jurisdiction. The decals are not interchangeable between trucks. The Articles of Agreement require one affixed to the exterior on each side of the cab.5International Fuel Tax Association. IFTA Articles of Agreement – R625 Display of Decals Enforcement officers at weigh stations and roadside inspections look for these to confirm IFTA participation, so a visible placement saves time on both sides.

Each vehicle also has to carry a copy of the current IFTA license (often called a cab card) inside the cab. The base jurisdiction issues one license for the fleet, and the carrier is responsible for copying it and placing a copy in every qualified vehicle.2International Fuel Tax Association. Carrier Information Some jurisdictions issue temporary decals or a temporary authority letter to bridge the gap between approval and delivery.

What Happens If You Miss the Deadline

Operating a qualified motor vehicle without valid IFTA decals draws real penalties. Amounts vary by jurisdiction, but they typically include a traffic citation plus a monetary fine that can reach $1,000 or more for a first offense. Repeat violations are steeper. These are per-vehicle fines, so a fleet running five non-compliant trucks through a single jurisdiction can face five separate penalties.

The bigger risk is losing the license entirely. Failure to comply with IFTA requirements gives your base jurisdiction grounds to suspend or revoke your license.6International Fuel Tax Association. IFTA Articles of Agreement – R420 License Suspension and Revocation A revoked license shuts down interstate operation unless you purchase individual trip permits for every jurisdiction you enter, which is far more expensive than maintaining IFTA credentials.

Reinstatement after revocation is possible but adds cost. The base jurisdiction may charge a reinstatement fee and can require you to post a fuel tax bond large enough to cover potential liabilities across all member jurisdictions.7International Fuel Tax Association. IFTA Articles of Agreement – R430 License Reinstatement That bond alone can tie up thousands of dollars.

Trip Permits as a Fallback

If you find yourself without valid decals and need to move a truck through another jurisdiction immediately, temporary trip permits are the backup. They are issued by individual jurisdictions or through third-party permitting companies, and they authorize a single trip for a limited number of days (typically five). Costs vary but generally run between $25 and $75 per permit, per state. For a route crossing six or seven states, that adds up fast, which is why trip permits work as emergency coverage but do not substitute for proper IFTA licensing.

Trip permits are also the only legal option for carriers whose IFTA license has been revoked or who never obtained one. During the January and February grace period, a valid trip permit from the jurisdiction you are entering satisfies compliance if you cannot display current or prior-year decals.4International Fuel Tax Association. IFTA Credential Grace Period

Which Vehicles Actually Need Decals

Not every truck in a fleet needs IFTA credentials. A vehicle qualifies if it has two axles and a gross or registered gross weight over 26,000 pounds, has three or more axles regardless of weight, or is used in combination with others when the combined gross weight exceeds 26,000 pounds. Recreational vehicles such as motor homes, pickup trucks with campers, and buses used exclusively for personal travel do not count as qualified motor vehicles, even if they exceed the weight threshold. That exemption disappears the moment the vehicle is used in connection with a business.2International Fuel Tax Association. Carrier Information

Leased Trucks and Independent Contractors

Fleets that use leased trucks or independent contractors have an extra wrinkle at renewal. The general rule depends on the length of the lease and whether there is a written agreement designating who reports and pays fuel taxes.8International Fuel Tax Association. IFTA Articles of Agreement – R500 Lessors/Lessees and Household Goods Carriers

For short-term rentals of 29 days or less from a company that regularly leases vehicles without drivers, the leasing company is responsible for fuel taxes unless two conditions are met: a written rental contract assigns tax responsibility to the lessee, and the lessor has a copy of the lessee’s valid IFTA license. For long-term leases of 30 days or more involving independent contractors, the parties can designate in writing who handles reporting. Without a written agreement, the lessee (the carrier) is responsible by default.

This matters at renewal because the vehicles covered under your IFTA license need to match what you are actually operating. If you have added leased trucks or brought on independent contractors whose vehicles now run under your authority, your decal order needs to reflect that. If a contractor left and took their truck with them, do not order decals for a vehicle no longer in your fleet.