IFTA Tax Rates in Minnesota (2026)

Key numbers at a glance

IFTA tax rates in Minnesota

The rates below are what your base state applies to Minnesota miles when it processes your quarterly IFTA return. Figures are as of Q4 2026 — confirm the current official IFTA matrix before filing, since Minnesota's inflation adjustment produces a new rate almost every year.

Minnesota's rate is not one tax but a stack: the statute sets an excise tax on gasoline and special fuel, adds per-gallon fees (including the environmental surcharge collected for the petroleum tank cleanup program), and indexes the excise portion to inflation. The Department of Revenue publishes the full year-by-year table on its petroleum tax rates page, and the October 2026 notice confirmed the next combined rate at 32.8 cents — 29.3 cents of excise plus 3.5 cents of fees — for 2027. For biodiesel blends above B10 used in diesel engines, Minnesota publishes a separate biodiesel rate table; confirm the exact line in the IFTA matrix if you run high blends.

How Minnesota IFTA affects your filings

Your quarterly return taxes every gallon burned in Minnesota at 32.7 cents, regardless of where the fuel was purchased. The math: Minnesota miles ÷ fleet MPG × 32.7 cents. At 6.5 MPG, Minnesota costs 5.03 cents per mile in fuel tax — 400 miles means 61.5 taxable gallons and $20.11 owed. A Twin Cities regional carrier running 8,000 Minnesota miles a quarter at 6.5 MPG owes roughly $402 before pump credits.

Credits work the other side of the same coin. Minnesota fuel receipts carry the 32.7-cent tax embedded in the pump price, so buying in Minnesota while burning Minnesota miles nets to zero on that line. The exposure comes on lanes that cross the border: miles accumulated in Fargo, Sioux Falls or Superior are taxed by North Dakota, South Dakota or Wisconsin at their rates, and fuel bought in those states credits against those states only. If your receipts and your miles live in different states, the difference lands on the return four times a year.

Discipline that keeps the return boring: keep every fuel receipt matched to distance records (ELD or GPS trip reports), recompute MPG each quarter, and file on time even at zero net — late filings typically draw $50–$100 penalties plus interest, and repeated misses can cost you the license. Use the IFTA calculator to pre-check each quarter's numbers, and the fuel surcharge guide to bill shippers for the fuel itself.

Fueling strategy: Minnesota versus its neighbors

Minnesota sits mid-pack in the Upper Midwest — even with Wisconsin and Iowa, a bit above South Dakota, and far above North Dakota. Neighbor rates below are per gallon, per the Tax Foundation's July 2026 state table (Minnesota shown from the Department of Revenue rate above).

The play: on I-94 toward Fargo or I-90 toward Sioux Falls, filling up in Minnesota before the border is usually the neutral-to-smart move — you prepay tax on gallons you were going to owe for Minnesota miles anyway, and 32.7 cents is close enough to Wisconsin and Iowa that the difference is noise. The real gap is North Dakota: running Minnesota miles on North Dakota fuel leaves 9.7 cents per gallon due at filing, roughly $15 on every 1,000 Minnesota miles at 6.5 MPG. Compare pump price minus tax instead of sticker price, plan fuel stops against the states still on the route, and track every state on the IFTA rates by state hub. Official quarterly numbers live in the IFTA Clearinghouse rate matrix.