District of Columbia Mileage and Vehicle Tax Records (2026): Federal AGI, Bonus and Section 179 Add-Backs, DFHV Registration and AV Testing
General information, not tax or legal advice. Talk to your tax preparer or attorney about your situation.
DC starts Form D-40 from federal adjusted gross income, so a self-employed driver's federal mileage deduction carries over, and rates reach 10.75%. DC disallows federal bonus depreciation and caps Section 179, so you add back the excess on Schedule I. Rideshare companies register with DFHV, and DDOT permits autonomous vehicle testing.
The District follows your federal adjusted gross income but disallows several federal depreciation breaks that matter for vehicle buyers. This guide covers what DC's Office of Tax and Revenue and the D.C. Code say as of October 16, 2026.
The federal baseline every District of Columbia 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 DC treats vehicle deductions
The 2025 Form D-40 booklet starts from federal adjusted gross income, so a Schedule C vehicle deduction, figured with the standard mileage rate or actual costs, is already reflected. Additions and subtractions go on Schedule I. DC's top rate is 10.75%, on taxable income over $1,000,000.
Depreciation: bonus and Section 179 add-backs
The 2025 Schedule I instructions say federal bonus depreciation under IRC § 168(k), the § 168(n) deduction for qualified production property and the additional Section 179 expense are disallowed. You add back the excess of the bonus and § 168(n) deductions over regular depreciation, and the excess Section 179 expense over DC's limit. In later years, because the DC basis is higher, Calculation B, line 5 lets you subtract the excess of DC depreciation over federal depreciation. Keep a DC depreciation schedule for any vehicle with bonus depreciation or a large Section 179 deduction. See robotaxi fleet depreciation and Section 179.
Rideshare (private vehicle-for-hire) rules in DC
DC calls rideshare companies private vehicle-for-hire companies. Under D.C. Code § 50-301.29a, they register with the Department of For-Hire Vehicles (DFHV), keep records for enforcement and report trip data to DFHV. Download your own receipts and annual summaries for your federal Schedule C. See which rideshare miles count. If you also drive in a neighboring state, see the Maryland and Virginia guides.
Robotaxis and autonomous vehicles in DC
D.C. Code § 50-2352.01 establishes an Autonomous Vehicle Testing Program administered by the Department, which § 50-2351 defines as the District Department of Transportation (DDOT). An AV testing entity applies for a testing permit with vehicle information, a safety and risk mitigation assessment and its operational design domain. Each vehicle must be tested with a test operator physically present or with a remote operator. For current permits and rules, check with DDOT or an attorney. For fleet records, see robotaxi fleet tax basics.
What to keep in your District of Columbia 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 District's period.
- Keep a DC depreciation schedule beside the federal one for any vehicle with bonus depreciation or a large Section 179 deduction.
- For rideshare: download trip receipts and annual summaries for your federal Schedule C.
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
A District of Columbia 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)
- DC Office of Tax and Revenue, 2025 D-40 booklet
- DC Office of Tax and Revenue, 2025 Schedule I
- D.C. Code § 50-301.29a
- D.C. Code § 50-2352.01
- D.C. Code § 50-2351
- IRS, Standard mileage rates; IRS Publication 463; IRS Topic 510
Frequently asked questions
Does DC use my federal mileage deduction?
Generally yes for the self-employed. Form D-40 starts from federal adjusted gross income, which already reflects Schedule C vehicle expenses.
Does DC allow bonus depreciation?
No. The Schedule I instructions disallow federal bonus depreciation and the additional Section 179 expense, so you add back the excess and subtract the higher DC depreciation in later years.
What is DC's top income tax rate?
10.75%, on taxable income over $1,000,000.
Who regulates rideshare companies in DC?
The Department of For-Hire Vehicles (DFHV), under D.C. Code § 50-301.29a.
Can autonomous vehicles operate in DC?
DDOT runs an Autonomous Vehicle Testing Program with permits; testing requires a test operator in the vehicle or a remote operator.
This article is general information, not tax or legal advice. Talk to your tax preparer or attorney about your situation. District laws and bill status change; check the linked sources for the current text.
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