New Jersey Mileage and Vehicle Tax Records (2026): GIT-DEP, Rideshare Surcharge and Pending AV Bills
General information, not tax or legal advice. Talk to your tax preparer or attorney about your situation.
New Jersey doesn't let employees deduct business expenses from wages, so unreimbursed mileage gets no state deduction. Self-employed drivers start from federal Schedule C, but New Jersey disallows bonus depreciation and caps Section 179 at $25,000. Rideshare companies hold MVC permits and add a per-ride surcharge, and driverless pilot bills are still pending.
New Jersey's Gross Income Tax has its own rules for business income and depreciation, so a vehicle deduction can differ from your federal one. This guide covers what the Division of Taxation, the Motor Vehicle Commission (MVC) and the Legislature say as of October 16, 2026.
The federal baseline every New Jersey 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 New Jersey treats vehicle deductions
Employees
The Division of Taxation's wages page says New Jersey doesn't allow you to deduct employee business expenses from wages. Its deductions page adds that New Jersey doesn't allow federal deductions such as employee business expenses. An unreimbursed work trip in your own car gets no New Jersey deduction.
Self-employed drivers
The business income page says you first complete federal Schedule C for each business, then make New Jersey adjustments on Schedule NJ-BUS-1. A net business loss can't be reported as a loss, and the NJ-1040 instructions say a loss in one income category can't offset income in another. So a Schedule C loss can't offset your wages.
Depreciation
The Division's decoupling page says New Jersey decoupled from federal bonus depreciation for Gross Income Tax starting in 2004. Form GIT-DEP explains that only the older federal 30% allowance is allowed, if you took it federally. The New Jersey Section 179 maximum is $25,000, with no business income limit and no carryforward of unused amounts. See why business-use percentage matters.
Rideshare (TNC) rules in New Jersey
The MVC's TNC page says companies apply to the MVC for a permit under the Transportation Network Company Safety and Regulatory Act (N.J.S.A. 39:5H-4(e)). Drivers don't need a special MVC permit or endorsement but must be approved by the TNC, and vehicles show the TNC's identifying marker.
The Division's prearranged ride surcharge page says New Jersey charges riders $0.50 per single-rider ride or $0.25 per rider on a shared ride that begins and ends in the state. The company collects it and files monthly. It also sends a receipt within 48 hours showing the start and end, total time and distance, the fare and the surcharge. See which rideshare miles count.
Robotaxis and autonomous vehicles in New Jersey: bills pending
Two 2026 bills would set up a fully autonomous vehicle pilot program. Both are pending as of October 16, 2026, per the Legislature's bill records:
- S1677: introduced January 13, 2026; reported from the Senate Transportation Committee as a substitute on May 11, 2026 and referred to the Senate Budget and Appropriations Committee.
- A3968: introduced January 13, 2026; reported as an Assembly Committee Substitute on June 1, 2026 and referred to the Assembly Appropriations Committee.
Neither is law. For what a fleet would track, see robotaxi fleet tax basics.
What to keep in your New Jersey 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 Section 179 or bonus depreciation federally: each vehicle's cost, placed-in-service date and federal depreciation, for Form GIT-DEP.
- For rideshare: keep the per-ride receipts, which show distance and time, and your annual summaries.
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 New Jersey 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)
- NJ Division of Taxation, Income Tax: Wages
- NJ Division of Taxation, Income Tax: Deductions
- NJ Division of Taxation, Income Tax: Business Income
- NJ Division of Taxation, 2025 NJ-1040 instructions
- NJ Division of Taxation, Decoupled from federal depreciation
- NJ Division of Taxation, Form GIT-DEP
- NJ MVC, TNC Safety and Regulatory Act
- NJ Division of Taxation, Prearranged Ride Surcharge
- NJ Legislature, S1677 (2026)
- NJ Legislature, A3968 (2026)
- IRS, Standard mileage rates; IRS Publication 463; IRS Topic 510
Frequently asked questions
Can New Jersey employees deduct unreimbursed mileage?
No. The Division of Taxation says New Jersey doesn't allow employee business expenses to be deducted from wages.
Does New Jersey allow bonus depreciation on a work vehicle?
No. New Jersey decoupled from federal bonus depreciation; GIT-DEP allows only the older 30% allowance if you took it federally.
What is New Jersey's Section 179 limit?
$25,000, with no business income limit and no carryforward of unused amounts (Form GIT-DEP).
What is the New Jersey rideshare surcharge?
$0.50 per single-rider ride or $0.25 per rider on a shared ride beginning and ending in New Jersey, collected by the company.
Are robotaxis legal in New Jersey?
Pilot program bills S1677 and A3968 are pending in appropriations committees as of October 16, 2026; neither has passed.
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.