Trucking Taxes in California: What You Need to Know
Running a trucking business involves federal and state taxes. If you operate in California, here are the main taxes and fees:
1. IFTA (International Fuel Tax Agreement)
For trucks driving in multiple states:
-
Register with IFTA via the California DMV
-
Display IFTA decals on each vehicle
-
File quarterly fuel and mileage reports
IFTA ensures each state gets its fair share of fuel taxes.
2. State Registration & IRP
-
Commercial vehicles must be registered in California
-
IRP allows interstate operation and calculates fees based on miles driven in each state
-
Renew annually through the DMV
3. Heavy Vehicle Use Tax (HVUT)
-
Federal tax for vehicles 55,000 lbs or more
-
File annually on IRS Form 2290
-
Tax ranges from $100–$550 depending on vehicle weight
-
Some exemptions apply (low-mileage, farm, or government vehicles)
4. California Income Tax
-
Corporations: corporate tax or franchise minimum
-
Owner-operators: report business profits on personal returns
-
Self-employment tax (15.3%) still applies
-
Quarterly estimated payments are required
5. California Sales & Use Tax
-
Tax applies to equipment, parts, and supplies
-
Exemptions are available for qualified purchases used in interstate commerce (tractors, trailers, repair parts, safety gear)
-
Use the CDTFA Sales & Use Tax Certificate of Exemption and keep records for audit protection
Key Takeaway
California truckers must navigate federal taxes (HVUT, income, self-employment) and state-specific rules (IFTA, IRP, sales/use tax). Proper recordkeeping and knowing exemptions can save you thousands each year.
