Arkansas Mileage and Vehicle Tax Records (2026): No Bonus Depreciation, Employee Mileage, PSC Rideshare Permits and Driverless Networks
General information, not tax or legal advice. Talk to your tax preparer or attorney about your situation.
Arkansas taxes 2025 income at a top rate of 3.9% and doesn't follow federal bonus depreciation, so a vehicle's Arkansas depreciation can differ from your federal figure. Unlike the IRS, Arkansas still allows unreimbursed employee business expenses at the federal mileage allowance. Rideshare companies need a Public Service Commission permit, and Act 619 of 2021 covers driverless networks.
Arkansas keeps two rules that federal filers don't have: separate state depreciation and a deduction for unreimbursed employee expenses. This guide covers what the Department of Finance and Administration, the Public Service Commission rules and Arkansas statutes say as of October 16, 2026.
The federal baseline every Arkansas driver starts from
Most vehicle deductions begin on your federal return. If you're self-employed, you can generally use the standard mileage rate or actual expenses for the business share of your car (IRS Topic 510). For 2026 the business rate is 72.5¢ per mile for January 1 to June 30 (IR-2025-128 / Notice 2026-10) and 76¢ per mile for July 1 to December 31 (IR-2026-29 / Announcement 2026-11) (IRS standard mileage rates). EVs use the same rates; see the 2026 EV mileage rate guide. Most employees can't deduct unreimbursed car expenses federally (Topic 510). IRS Publication 463 asks for each business trip's miles, date, destination and purpose, plus total miles. Commuting stays personal (commuting vs business miles).
How Arkansas treats vehicle deductions
The 2025 Form AR1000F/AR1000NR instructions have you report business or professional income on line 13, based on your federal Schedule C. Marginal rates for 2025 top out at 3.9%, as amended in 2024. If you itemize, line 20 of Form AR3 covers unreimbursed employee business expenses. The instructions say Arkansas recognizes the federal mileage allowance for business travel and ask you to attach Form AR2106. Those expenses fall under the 2% of AGI limit, so they're worth checking for W-2 employees who drive for work. See commuting vs. business miles.
Depreciation: no bonus, separate Section 179 limits
The instructions say Arkansas didn't adopt federal bonus depreciation, so federal and Arkansas depreciation can differ. The AR-OI instructions repeat that Arkansas hasn't adopted IRC Section 168(k) and give a line for state depreciation not claimed elsewhere. For Section 179, Arkansas adopted the federal rules as in effect January 1, 2022, for purchases after 2022: a $1,250,000 deduction limit and a $3,130,000 cost-of-property limit. Keep an Arkansas depreciation schedule beside your federal one. See robotaxi fleet depreciation and Section 179.
Rideshare (TNC) rules in Arkansas
Arkansas TNCs need a permit from the Arkansas Public Service Commission. Under the commission's rule, 23 CAR § 467-202, an application must show that the TNC will send riders an electronic receipt as Arkansas Code § 23-13-708 requires and will meet the recordkeeping rules in § 23-13-718. The annual permit fee is $15,000. Save your own receipts and annual summaries too. See which rideshare miles count. If you also drive in Texas, see the Texas guide.
Robotaxis and driverless networks in Arkansas
Act 619 of 2021 (HB 1562, approved April 8, 2021) amended Arkansas's autonomous vehicle law. A fully autonomous vehicle may operate under an autonomous vehicle pilot program approved by the State Highway Commission, and a program is automatically approved 60 days after it's submitted. The act also lets a person operate an on-demand driverless capable vehicle network, connecting passengers or goods to fully autonomous vehicles alone or alongside human drivers. For fleet records, see robotaxi fleet tax basics.
What to keep in your Arkansas records
- Each business trip's date, start, destination, purpose and miles, plus total miles for the year (Pub 463); a weekly log counts as timely kept.
- Separate Business, Commute and Personal totals for Form 4562 Part V.
- Keep records until the period of limitations runs out, generally 3 years federally (IRS); ask your preparer about the state period.
- Keep an Arkansas depreciation schedule beside the federal one, since Arkansas doesn't allow bonus depreciation.
- W-2 employees who drive for work: keep the mileage log behind Form AR2106.
For the full list of log fields, see what the IRS asks you to record.
Example: 1,000 hypothetical business miles driven in September 2026 × 76¢ (IR-2026-29) = $760 at the federal standard rate. Miles driven in March 2026 would use 72.5¢ (IR-2025-128) instead, so keep each trip's date. Estimates, not tax advice.
One log for both returns
An Arkansas return doesn't call for a second mileage log; your preparer works from the same business, commuting and personal miles. CyberDeduct builds a mileage log around IRS Pub 463 from your Tesla's own trip and odometer data (Model S, 3, X, Y and Cybertruck). You connect your Tesla account once through Tesla's standard account sign-in (OAuth); CyberDeduct never sees or stores your password. Home/work rules and route templates label most trips Business, Commute or Personal; you tap to change any label and confirm the purpose. The dashboard shows your business-use percentage and warns you on the 28th if you're under 50%. You export a PDF or CSV log plus a Form 4562 Part V worksheet for your preparer. See how the log is built or see plans.
Sources (checked October 16, 2026)
- Arkansas DFA, 2025 AR1000F/AR1000NR instructions
- Arkansas DFA, 2025 AR-OI instructions
- 23 CAR § 467-202 (Arkansas Public Service Commission)
- Act 619 of 2021 (HB 1562)
- IRS, Standard mileage rates; IRS Publication 463; IRS Topic 510
Frequently asked questions
Does Arkansas allow bonus depreciation?
No. The 2025 instructions say Arkansas didn't adopt federal bonus depreciation (IRC Section 168(k)), so state depreciation can differ from federal.
Can Arkansas employees deduct work mileage?
Itemizers can claim unreimbursed employee business expenses on Form AR3, line 20, using the federal mileage allowance, with Form AR2106 and the 2% of AGI limit.
What is the Arkansas Section 179 limit?
For purchases after 2022, Arkansas uses $1,250,000, with a $3,130,000 cost-of-property limit, per the 2025 instructions.
Do Arkansas rideshare companies need a permit?
Yes, from the Arkansas Public Service Commission, under 23 CAR § 467-202.
Are robotaxis allowed in Arkansas?
Act 619 of 2021 allows fully autonomous vehicles under a pilot program approved by the State Highway Commission, and allows on-demand driverless capable vehicle networks.
This article is general information, not tax or legal advice. Talk to your tax preparer or attorney about your situation. State laws and bill status change; check the linked sources for the current text.
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