North Dakota Mileage and Vehicle Tax Records (2026): Federal Taxable Income, Rates up to 2.5%, TNC Rules and Driverless Vehicles
General information, not tax or legal advice. Talk to your tax preparer or attorney about your situation.
North Dakota starts Form ND-1 from federal taxable income, so a self-employed driver's federal mileage deduction carries over, and 2025 rates are 0%, 1.95% and 2.5%. State law sets rideshare driver requirements and bars local TNC taxes and licenses. Since 2019, autonomous vehicles may operate without a human driver if they can reach a minimal risk condition.
North Dakota builds its return from federal taxable income and has some of the lowest rates in the country. This guide covers what the Office of State Tax Commissioner and the North Dakota Century Code say as of October 16, 2026.
The federal baseline every North Dakota 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 North Dakota treats vehicle deductions
The 2025 individual income tax booklet has you enter federal taxable income from Form 1040, line 15, on Form ND-1, line 1b, so a Schedule C vehicle deduction, figured with the standard mileage rate or actual costs, is already reflected. For single filers, the 2025 rate is 0% up to $48,475 of North Dakota taxable income, 1.95% up to $244,825 and 2.5% above that.
Depreciation and records
Because North Dakota starts from federal taxable income, a vehicle's federal depreciation generally carries into the return unless a North Dakota adjustment applies. Ask your preparer about your own situation, and keep the federal Form 4562 and the mileage log behind it. See Form 4562 Part V vehicle records and robotaxi fleet depreciation and Section 179.
Rideshare (TNC) rules in North Dakota
North Dakota's TNC law is N.D.C.C. chapter 39-34. Section 39-34-03 requires a TNC to take an application, run local and national criminal background checks and review a driving history report before a driver starts. Section 39-34-03.1 says a driver is an independent contractor, not an employee, if the TNC meets the conditions listed there. Under section 39-34-06, a political subdivision may not impose a tax on, or require a license for, a TNC or its drivers. Save your own trip receipts and annual summaries. See which rideshare miles count. If you also drive in Minnesota, see the Minnesota guide.
Robotaxis and autonomous vehicles in North Dakota
HB 1418 (2019), signed by the Governor, created N.D.C.C. § 39-01-01.2. An autonomous vehicle with its automated driving system engaged doesn't need a human driver on public highways if it can achieve a minimal risk condition when the system fails. It must meet registration, title and insurance requirements. A person using the vehicle isn't treated as driving, and is exempt from licensing, while the system performs the entire driving task. For fleet records, see robotaxi fleet tax basics.
What to keep in your North Dakota 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 your federal Form 4562 and Schedule C; North Dakota starts from the same federal taxable income.
- 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 North Dakota 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)
- North Dakota Office of State Tax Commissioner, 2025 income tax booklet
- N.D.C.C. chapter 39-34
- N.D.C.C. chapter 39-01 (§ 39-01-01.2)
- North Dakota Legislature, HB 1418 (2019)
- IRS, Standard mileage rates; IRS Publication 463; IRS Topic 510
Frequently asked questions
Does North Dakota use my federal mileage deduction?
Generally yes for the self-employed. Form ND-1 starts from federal taxable income on line 1b, which already reflects Schedule C vehicle expenses.
What are North Dakota's 2025 income tax rates?
For single filers, 0% up to $48,475, 1.95% up to $244,825 and 2.5% above that.
Are North Dakota rideshare drivers employees?
N.D.C.C. § 39-34-03.1 treats a driver as an independent contractor if the TNC meets the listed conditions.
Can North Dakota cities tax rideshare?
No. Section 39-34-06 bars political subdivisions from taxing or licensing TNCs and their drivers.
Are driverless cars legal in North Dakota?
Yes. § 39-01-01.2 allows operation without a human driver if the vehicle can achieve a minimal risk condition.
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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