IFTA Tax Rates in Tennessee (2026)

Key numbers at a glance

IFTA tax rates in Tennessee

Rates below are as of Q4 2026 — confirm the current official IFTA matrix before filing. Jurisdiction code for Tennessee on your IFTA return is 47.

Two things make Tennessee worth a second look on your rate sheet. First, diesel is taxed below gasoline — 21.0 cents against roughly 27.4 — which is backwards from most jurisdictions and effectively subsidizes diesel miles in the state. Second, both figures sit well under the national heavy hitters: Washington's diesel rate hit 59.5 cents on July 1, 2026 (per the Washington Department of Revenue) and Virginia's diesel rate is 33.6 cents (per the Virginia DMV). Against Texas's flat 20 cents (per the Texas Comptroller) Tennessee is roughly even; against the 30–40 cent band where most eastern states sit, it is cheap. For the full coast-to-coast picture, see our IFTA rates by state hub.

Work the math like this: taxable gallons equal miles in Tennessee divided by your truck's MPG, and tax equals gallons times 0.210. At 6.5 MPG, 1,000 Tennessee miles burn 153.8 gallons and owe the state $32.31 on diesel — about $19 less than the same miles would cost in Virginia. Run your own lanes through the IFTA calculator; it does this per state in seconds.

How Tennessee IFTA affects your filings

Whether Tennessee is your base state or just a line on the return, the mechanics are the same. The tax follows where fuel is burned, not where it is bought. If your base state is Tennessee, the Department of Revenue administers your IFTA account, you file one quarterly return covering every member jurisdiction, and you keep four consecutive quarters of fuel receipts and per-state distance records (ELD or GPS) for audit. If Tennessee is a pass-through, you still log Tennessee miles precisely — unreported or estimated miles are among the most common audit adjustments.

The filing calendar never moves, even when the net is zero:

Tennessee's low diesel rate changes your fuel-buying strategy on the I-40 corridor (Memphis–Nashville–Knoxville) and I-75/I-81 toward Virginia. Because you prepay only 21 cents a gallon at a Tennessee pump, fueling here before crossing into higher-rate states leaves you owing the difference later — budget for it. The smarter play is the reverse: top off in a high-tax state before deadheading or running long in Tennessee, because the credit comes back on the return. Compare pump price minus the state rate, not the sticker alone, and remember your fuel surcharge is calculated off retail diesel prices, so a low-tax state can still look expensive at the pump.

Rates do drift. Tennessee's schedules moved as recently as January 1, 2025, and the Tax Foundation's July 2026 table tracks changes across all states — pull the current quarter's matrix from IFTA Inc. or the Tennessee Department of Revenue before every filing.