Illinois Mileage and Vehicle Tax Records (2026): IL-4562, Rideshare Act and Autonomous Vehicle Bills
General information, not tax or legal advice. Talk to your tax preparer or attorney about your situation.
Illinois taxes income at a flat 4.95%, starting from federal adjusted gross income, and Form IL-1040 has no deduction for unreimbursed employee mileage. Form IL-4562 reverses federal bonus depreciation on a work vehicle. Rideshare runs under the Transportation Network Providers Act, and driverless operation isn't authorized; a pilot bill is pending.
Illinois keeps its income tax simple, which makes the vehicle questions narrow: depreciation and records. This guide covers what the Illinois Department of Revenue, the Illinois Compiled Statutes and the General Assembly show as of October 16, 2026.
The federal baseline every Illinois 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 Illinois treats vehicle deductions
The 2025 Form IL-1040 instructions start with the adjusted gross income from your federal return and set the rate at 4.95%. From there Illinois applies its additions, subtractions and an exemption allowance; it doesn't have a federal-style itemized deduction schedule. A self-employed driver's Schedule C vehicle deduction is already inside federal AGI. An employee's unreimbursed mileage has no Illinois line, and federally most employees can't deduct it either (IRS Topic 510).
Bonus depreciation: Form IL-4562
The 2025 Form IL-4562 instructions say the form reverses the effects of the 30, 40, 50, 60, 80 or 100 percent bonus depreciation allowed under IRC Section 168(k) and (n). Step 2 figures an Illinois addition, and Step 3 figures an Illinois depreciation subtraction in its place. The form is required if you reported special depreciation on federal Form 4562, and employees who reported it on federal Form 2106 use it too. Keep the cost, placed-in-service date and business-use percentage. See why business-use percentage matters.
Rideshare (TNC) rules in Illinois
The Transportation Network Providers Act (625 ILCS 57) governs rideshare statewide. Its sections carry the note that they're scheduled to be repealed on September 1, 2028.
- TNC services: these begin when a driver accepts a request, continue while the passenger is carried, and end when the passenger exits (section 5).
- Insurance: while logged on and between rides, at least $50,000 per person, $100,000 per incident and $25,000 for property damage. From acceptance until the ride is complete, $1,000,000 of primary coverage (section 10).
- Receipts: the TNC must send the passenger a receipt with the origin and destination, the total time and distance, and the fare (section 30).
- Local rules: local governments, including home-rule units, can't regulate TNCs less strictly than the state (section 32), so city rules such as Chicago's can add requirements.
Platform receipts help support your log, but they don't show every mile you drive. See which rideshare miles count.
Robotaxis and autonomous vehicles in Illinois
Executive Order 2018-13 created the Autonomous Illinois Testing Program, run by IDOT. It allows testing on public roads only with a properly licensed driver in the driver's seat, able to take control. The order notes that Illinois law already allowed automated vehicles to operate with a licensed driver in control of the driving task.
HB 4663, the proposed Autonomous Vehicle Pilot Project Act, is pending. It would require IDOT authorization to operate an autonomous vehicle with the automated driving system engaged, and would limit pilot areas to certain counties. It was re-referred to the House Rules Committee on March 27, 2026. For a broader comparison, see robotaxi permits and taxi medallions.
What to keep in your Illinois 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.
- If you took federal bonus depreciation: the vehicle's cost and placed-in-service date for Form IL-4562, which needs figures in later years too.
- For rideshare in Chicago or another city with its own rules: keep any city permits and statements with your tax records.
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 Illinois 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)
- Illinois DOR, 2025 Form IL-1040 instructions
- Illinois DOR, 2025 Form IL-4562 instructions
- 625 ILCS 57, Transportation Network Providers Act
- Executive Order 2018-13, Autonomous Illinois
- Illinois General Assembly, HB 4663 bill status
- IRS, Standard mileage rates; IRS Publication 463; IRS Topic 510
Frequently asked questions
Can Illinois employees deduct unreimbursed mileage?
No state deduction applies. Form IL-1040 starts from federal AGI and has no line for unreimbursed employee expenses, and most employees can't deduct them federally (IRS Topic 510).
Does Illinois allow federal bonus depreciation on a vehicle?
No. Form IL-4562 reverses Section 168(k) and (n) bonus depreciation with an Illinois addition and an Illinois depreciation subtraction (2025 IL-4562 instructions).
What is the Illinois income tax rate?
4.95%, per the 2025 Form IL-1040 instructions.
Is the Illinois rideshare law permanent?
The Transportation Network Providers Act is scheduled to be repealed on September 1, 2028, as the statute currently reads.
Are driverless robotaxis legal in Illinois?
Current state testing requires a licensed driver in the driver's seat (Executive Order 2018-13). HB 4663 would create an autonomous vehicle pilot program but is pending.
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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