Maryland Mileage and Vehicle Tax Records (2026): Form 500DM Depreciation, PSC Rideshare Permits and AV Bills
General information, not tax or legal advice. Talk to your tax preparer or attorney about your situation.
Maryland starts from federal adjusted gross income, so a self-employed driver's federal mileage deduction carries over. Maryland doesn't follow federal bonus depreciation for most taxpayers and caps Section 179 at $25,000, so you recalculate on Form 500DM. Rideshare companies need a Public Service Commission permit, and the 2026 driverless-vehicle bills weren't enacted.
Maryland separated from federal depreciation rules decades ago, and the gap can be large for a business vehicle. This guide covers what the Comptroller of Maryland and the Maryland Code say as of October 16, 2026.
The federal baseline every Maryland 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 Maryland treats vehicle deductions
The 2025 Maryland resident booklet starts the return with federal adjusted gross income on line 1, so a Schedule C vehicle deduction is already reflected. Depreciation is where Maryland differs, and the Comptroller's 2025 Form 500DM instructions explain how to compute the difference.
Depreciation: what Form 500DM decouples
Form 500DM lists the federal provisions Maryland doesn't follow. They include:
- The federal special depreciation allowance (bonus depreciation), beginning with the 2002 federal law and later increases.
- Federal Section 179 deductions for tax years beginning on or after January 1, 2003. For Maryland you may expense up to $25,000 of Section 179 property, reduced dollar for dollar by the cost above $200,000.
- For vehicles placed in service after May 31, 2004, the higher federal depreciation allowed for certain heavy-duty SUVs under IRC Section 280F.
- Special depreciation for qualified production property under IRC 168(n), added by the 2025 federal law.
The Comptroller's Administrative Release 38 explains the background and an exception for manufacturing entities. A driver isn't usually a manufacturing entity, but ask your preparer. The Maryland modification carries to your Maryland return. The difference reverses over the vehicle's life, so keep the Maryland schedule each year. See robotaxi fleet depreciation and Section 179.
Rideshare (TNC) rules in Maryland
Maryland regulates TNCs in the Public Utilities Article. Under § 10-403.1, a transportation network company may not operate in the state unless the Public Service Commission has issued it a permit. § 10-401 defines an "operator" as a transportation network operator, partner or driver. The PSC is the agency to check for current driver rules. Your company's annual tax summary helps with income, but keep your own mileage log too. See which rideshare miles count.
Robotaxis and autonomous vehicles in Maryland
In the 2026 session, HB 1295 and its Senate cross-file SB 909 proposed rules for fully autonomous vehicles in the Transportation Article. As of October 16, 2026, the General Assembly's bill pages show each bill's last status as a committee hearing: HB 1295 in the House on March 5 and SB 909 in the Senate on March 4. Neither was enacted. Maryland's legislature would need a new bill in a later session. For fleet records, see robotaxi fleet tax basics.
What to keep in your Maryland 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 claimed bonus depreciation or more than $25,000 of Section 179 federally: keep cost, placed-in-service date, vehicle weight class and both depreciation schedules for Form 500DM.
- For rideshare: download ride receipts and annual summaries before you change apps or close an account.
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 Maryland 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)
- Comptroller of Maryland, 2025 resident tax booklet
- Comptroller of Maryland, 2025 Form 500DM
- Comptroller of Maryland, Administrative Release 38
- Md. Public Utilities § 10-401
- Md. Public Utilities § 10-403.1
- HB 1295 (2026)
- SB 909 (2026)
- IRS, Standard mileage rates; IRS Publication 463; IRS Topic 510
Frequently asked questions
Does Maryland use my federal mileage deduction?
Generally yes for the self-employed. The Maryland return starts from federal adjusted gross income, which already includes Schedule C vehicle expenses.
Does Maryland allow bonus depreciation?
Not for most taxpayers. Form 500DM decouples from the federal special depreciation allowance; AR 38 describes an exception for manufacturing entities.
What is Maryland's Section 179 limit?
$25,000, reduced dollar for dollar by the cost of Section 179 property above $200,000, per the 2025 Form 500DM instructions.
Who regulates rideshare companies in Maryland?
The Public Service Commission. A TNC needs a PSC permit to operate (Public Utilities Article § 10-403.1).
Are driverless cars legal in Maryland in 2026?
HB 1295 and SB 909 would have set rules for fully autonomous vehicles, but they stopped at committee hearings in March 2026 and weren't enacted.
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.
CyberDeduct is an independent product of LIKE LLC and is not affiliated with or endorsed by Tesla, Inc. Tesla is a trademark of Tesla, Inc.