IFTA Tax Rates in Michigan (2026)
Michigan taxes diesel and gasoline at 52.4 cents per gallon for 2026 — a 51.0-cent base rate plus a 1.4-cent inflation adjustment, following the biggest fuel tax overhaul in the state's history. Here is what carriers owe per mile, how the rate landed here, and how to buy fuel smartly against Indiana, Ohio and Wisconsin.
By the HaulMath editorial team · Updated $1
Key numbers at a glance
| Fuel | Michigan tax rate | Effective period and basis |
|---|---|---|
| Diesel (clear) | 52.4¢ per gallon | Jan 1 – Dec 31, 2026: 51.0¢ base + 1.4¢ inflation adjustment, per the Michigan Department of Treasury |
| Gasoline | 52.4¢ per gallon | Jan 1 – Dec 31, 2026: same base and adjustment as diesel |
| Alternative fuels (LPG, CNG, LNG equivalents) | 52.4¢ per gallon equivalent | 2026 rate; verify the exact Btu-equivalent basis on the Treasury rate page |
| Federal excise (not part of IFTA) | 24.4¢ diesel / 18.4¢ gasoline | Paid at the pump; excluded from your IFTA settlement |
IFTA tax rates in Michigan
The table below shows the Michigan rates your base state uses when it processes your quarterly IFTA return. Rates below are as of Q4 2026 — confirm the current official IFTA matrix before filing, because the inflation adjustment moves the rate each January 1.
| Fuel | Michigan tax rate | Effective period and basis |
|---|---|---|
| Diesel (clear) | 52.4¢ per gallon | Jan 1 – Dec 31, 2026: 51.0¢ base + 1.4¢ inflation adjustment, per the Michigan Department of Treasury |
| Gasoline | 52.4¢ per gallon | Jan 1 – Dec 31, 2026: same base and adjustment as diesel |
| Alternative fuels (LPG, CNG, LNG equivalents) | 52.4¢ per gallon equivalent | 2026 rate; verify the exact Btu-equivalent basis on the Treasury rate page |
| Federal excise (not part of IFTA) | 24.4¢ diesel / 18.4¢ gasoline | Paid at the pump; excluded from your IFTA settlement |
How the rate got here: for years Michigan charged 31 cents per gallon plus a 6% sales tax on fuel purchases. The 2025 legislation (House Bill 4183) ended that split — diesel stepped up to the 51-cent base on October 1, 2025, gasoline followed on January 1, 2026, and the annual inflation indexing lifted both to 52.4 cents for calendar 2026. The old 6% sales tax on motor fuel was eliminated in the same overhaul, which is why pump-price comparisons from 2024 and earlier no longer work. For history, the January 1 – December 31, 2025 rate was 31.0 cents for gasoline, per the Treasury's published schedule.
How Michigan IFTA affects your filings
Every gallon your fleet burns on Michigan roads is taxed at 52.4 cents whether you bought the fuel in Gary, Toledo or Kenosha. Your quarterly IFTA return divides Michigan miles by your fleet MPG and multiplies by the rate. At 6.5 MPG, Michigan costs you 8.06 cents per mile in fuel tax alone — 500 Michigan miles means 76.9 taxable gallons and $40.30 owed. Run 10,000 Michigan miles a quarter at the same MPG and the state line on your return is roughly $806 before credits.
Because Michigan's rate is now among the higher ones in the Midwest, the credits side matters more than it used to. If you buy fuel in Michigan, 52.4 cents per gallon of the pump price is prepaid IFTA tax — a credit that cancels the Michigan liability mile for mile. If you buy in low-tax states and burn Michigan miles, the tax comes due on the return. Four times a year, that difference lands on one form.
Three practical rules: keep Michigan fuel receipts matched to Michigan distance records (ELD or GPS trip reports), recalculate your MPG every quarter instead of reusing an old number, and file even when the net is zero — late returns typically draw a $50–$100 penalty plus interest, and repeated misses can suspend your IFTA license. Our IFTA calculator runs the per-state math, and the fuel surcharge guide shows how to recover the rest of your fuel cost from shippers.
Fueling strategy: Michigan versus its neighbors
Michigan sits in the middle of a wide rate band. Indiana and Ohio are more expensive on diesel; Wisconsin is much cheaper. Neighbor rates below are per gallon, per the Tax Foundation's July 2026 state table (Michigan shown from the Treasury rate above).
| Jurisdiction | Diesel tax per gallon | Gasoline tax per gallon |
|---|---|---|
| Michigan | 52.4¢ | 52.4¢ |
| Indiana | 64.0¢ | 63.1¢ |
| Ohio | 47.0¢ | 38.5¢ |
| Wisconsin | 32.9¢ | 32.9¢ |
The play: on I-94 or I-75 routes heading into Wisconsin or Ohio, filling the tanks in Michigan before the line is usually correct — 52.4 cents pre-pays tax you were going to owe on those Michigan miles anyway, and it beats owing Indiana's 64 cents later. Running Michigan miles on Wisconsin fuel is the expensive direction: a 19.5-cent gap per gallon shows up as a due balance on your next return. Compare pump price minus tax, not sticker price, and check rates on the states still ahead of you — the full national picture is on our IFTA rates by state hub, and the quarterly numbers live in the IFTA Clearinghouse rate matrix.
FAQ
What is the Michigan IFTA tax rate on diesel in 2026?
52.4 cents per gallon from January 1 through December 31, 2026 — a 51.0-cent base plus a 1.4-cent inflation adjustment, per the Michigan Department of Treasury.
Why did the Michigan fuel tax jump in 2026?
The 2025 law (House Bill 4183) replaced the old 31-cent tax and the 6% sales tax on fuel with a single 51-cent base rate — diesel on October 1, 2025, gasoline on January 1, 2026 — indexed to 52.4 cents for 2026.
How do I calculate IFTA tax owed for Michigan miles?
Michigan miles ÷ your MPG × 52.4 cents. Example: 500 miles at 6.5 MPG = 76.9 gallons = $40.30 owed, minus any Michigan tax already paid at the pump.
Where should I buy fuel near Michigan?
Michigan diesel (52.4¢) is far above Wisconsin (32.9¢), above Ohio (47.0¢) and below Indiana (64.0¢). Fuel in Michigan before crossing into Wisconsin; avoid arriving at Michigan miles on cheap Wisconsin fuel.
How often do Michigan IFTA rates change?
The rate is inflation-indexed and can adjust every January 1. Check the Treasury rate page or the IFTA Clearinghouse matrix each quarter before you file.
Where do I find the official Michigan IFTA rate matrix?
The Michigan Department of Treasury motor fuel rate page posts the current rates, and iftach.org publishes the quarterly matrix your base state processes against.