Red Diesel Relief STATE-by-State GUIDE

Updated October 27, 2026 at 11:16 a.m. Central Daylight Time (CDT). Targeted federal, state, and IFTA recheck October 23; full 50-state review completed October 13. Dates below refer to 2026 unless another year is shown.

President Trump’s October 5 diesel order raised a practical question for carriers: what does my state allow? The answer changes with the state, the vehicle, the load, and the taxes involved. This guide lists every state so you can check the entire route and open the documents behind each identified response.

Following President Trump’s October 5 executive order, the IRS announced nationwide penalty relief for using red diesel on highways from October 1 through December 31, 2026.

During this period, federal dyed-fuel inspections and certain tax enforcement activities are suspended.

On October 21, the IRS also announced additional relief:

• No penalties for certain Form 720 filing and recordkeeping issues related to covered red diesel use during this period.
• No need to submit missing paperwork later for those specific reporting requirements, even if deadlines fall after December 31.
• Other federal tax reporting requirements, state fuel taxes, and IFTA obligations still apply.

Important: Federal fuel taxes have not been forgiven, and guidance on tax payments is still pending. The IRS is also considering relief for leftover red dye in fuel tanks after December 31, but nothing has been announced yet.

Read the White House executive order here.

Read the  Federal Register publication October 9  here.

Read the IRS October 14 Implementing Announcement here. 

Read the IRS October 21 Reporting and Records Relief here. 

Read the Dyed Diesel FAQ October 23rd article here. 

 Federal implementation sources checked: IRS current releases and Treasury releases. We haven't found official guidance yet, but it may already be available.

How To Read this list

 A waiver, penalty suspension, and enforcement-priority change can have different effects. Please read the linked eligibility rules before treating any announcement as permission for your truck or as tax relief. Any requests still awaiting approval are listed separately. 

No official response located means we did not find a published 2026 state response to the current red-diesel relief effort. This does not mean the state has denied relief or that no relief is available.

Please check with each state you operate in before making any decisions. Existing fuel-tax laws, past emergency waivers, and other trucking exemptions do not mean red diesel is currently allowed on highways in that state.

The links below include official orders, letters, announcements, and agency guidance where available. Documents hosted on IFTA's website or other industry organizations' websites are labeled, and any missing official documents are noted.

The October 13 review searched official sources for all 50 states, federal implementation, and IFTA notices.

The latest updates include:

• Kentucky: Highway miles remain taxable, and untaxed red diesel purchases cannot be counted as tax-paid fuel.
• Virginia: Fuel taxes must be paid before penalty relief applies. Additional DMV instructions are expected by October 23.
• South Dakota: A previously issued weight order was posted October 16, but it does not provide fuel-tax relief.
• Iowa: A 6% use tax still applies, but IFTA reporting requirements remain unclear.

No new federal fuel-tax payment or Form 720 instructions were found.

Earlier documents are retained and labeled where superseded. Documentation not located is a search finding is not confirmation of state inaction.

What Interstate Carriers Need to Know

1. Each State Has Different Rules

Just because a state allows red diesel on highways does not mean fuel taxes are waived or that IFTA reporting requirements no longer apply.

If you travel through multiple states, you must follow the rules in every state you operate in, even if you don't purchase fuel there.

For example:

• Arkansas: Its order excludes IFTA-licensed vehicles.
• Nebraska: Certain intrastate agricultural miles may qualify for a tax exemption.
• Illinois: Qualifying agricultural miles using red diesel may be exempt from Illinois fuel taxes. Regular freight does not qualify.
• Maryland: Certain qualifying operations may report miles as non-taxable, but additional IFTA reporting details need clarification.
• Texas: The state's 20-cent fuel tax still applies to taxable highway use.
• North Carolina: Fuel-tax relief depends on the operation and applicable requirements. Certain exemptions require additional documentation.
• South Dakota: State and municipal taxes may still apply. Qualifying agricultural purchases require exemption certificates.

Because each state handles fuel taxes differently, how much carriers actually save will vary by state.

2. IFTA Reporting Requirements Still Apply

According to IFTA's October 8 memo:

• All miles traveled and fuel purchased must still be included when calculating fuel mileage, including untaxed red diesel.
• Highway miles are still taxable unless a specific exemption applies.
• Red diesel purchased without tax generally cannot be reported as a tax-paid fuel purchase.
• Some states have additional reporting rules. For example, Virginia allows certain red diesel purchases to count as tax-paid gallons when the required backup tax has been paid.
• Continue filing your IFTA returns and keeping accurate mileage, fuel, and tax payment records.

Check current jurisdiction bulletins on the IFTA notice board

3. WHAT FEDERAL GUIDANCE HAS CHANGED?

Since IFTA's October 8 memo, the IRS has announced additional federal relief for red diesel used on highways from October 1 through December 31, 2026.

The updated guidance includes:

• Federal penalty relief: Certain federal penalties and enforcement activities related to highway use of red diesel are suspended.
• Reporting relief: Certain federal Form 720 reporting and recordkeeping requirements are waived for qualifying red diesel use.
• Taxes may still apply: Federal tax payment requirements and possible tax forgiveness are still being reviewed.

Important: Federal relief does not override state fuel taxes or IFTA reporting requirements. Carriers should confirm the rules for every state they operate in before using red diesel.

Read the IFTA memo and attached ATA notice.

What to Check Before Your Trip

Before using red diesel on highways, make sure you understand the rules for every state you'll travel through.

• Eligibility: Does your truck, registration, load, and route qualify? 
• Dates: When does the state's relief begin and end?
• Taxes: What federal and state fuel taxes will you still owe?
• Recordkeeping: What mileage, fuel purchases, and other documents do you need to keep?
• Fuel costs: Is red diesel available, and will it actually save you money after taxes?

Keep your fuel receipts and other records, and clearly identify any red diesel purchases when submitting records.

States With Conflicting Information

Some states have released guidance with conflicting dates or instructions.

• Iowa: The signed proclamation confirms relief through February 4, 2027, although older state webpages list February 2. A 6% use tax may still apply, and IFTA requirements need clarification. Federal relief still ends December 31, 2026.
• Georgia: Relief runs from September 29 through November 5, 2026, although some state webpages show older dates. Carriers must report all miles and fuel purchases but exclude qualifying Georgia miles from taxable miles and tax-free purchases from tax-paid gallons. All fuel still counts toward MPG calculations.
• Minnesota: The signed order lists October 31 as the expiration date for related weight and hours relief, while the press release lists October 30. This guide follows the signed order.
• Nebraska: The state's fuel-tax refund period ends December 23, while its IFTA mileage guidance ends December 22. Confirm the applicable deadline with the state.

States Still Awaiting Clarification

Additional information is still needed from several states:

• Kentucky: IFTA filing instructions are available, but an extension beyond the state's 30-day limit still needs confirmation.
• Mississippi: Official written guidance on eligibility, expiration dates, and fuel-tax requirements has not been located.
  
• Maryland: Additional clarification is needed on IFTA reporting. State relief does not override federal requirements.
• West Virginia: Fuel-tax guidance is still pending, and state documents list conflicting October 20 and October 21 dates.
• Louisiana: The published relief period ended October 22. No extension was confirmed as of October 23.

Virginia Update: Virginia has now published its backup-tax payment process, and IFTA reporting instructions are available. Carriers must pay the required backup tax before penalty relief applies and keep proof of payment.

Federal Updates: The IRS has confirmed certain Form 720 reporting and recordkeeping relief. However, federal fuel-tax payment terms and possible tax forgiveness remain unresolved.

Carriers should continue checking individual state requirements, as missing guidance does not necessarily mean a state has taken no action.

Upcoming State Deadlines

Several states have approaching deadlines that carriers should be aware of:

• Arkansas: Its current red diesel relief order expires October 30, 2026.
• Tennessee: Its current relief period ends October 31, 2026.
• Minnesota: Related weight and hours relief expires October 31, 2026, according to the signed order.
• Georgia: Its current dyed-fuel penalty relief and separate fuel-tax suspension end November 5, 2026.

Important: These deadlines may change if states issue extensions or additional guidance. Always verify the latest requirements before using red diesel on highways.

Aladdin is continuing to review state guidance and updates. This article provides a dated reference to help carriers make informed decisions.

For more information about the federal relief, red diesel availability, IFTA, and potential savings, read our complete red diesel explainer.