Ohio Mileage and Vehicle Tax Records (2026): 5/6 Depreciation Add-Back, Business Income Deduction and TNC Rules
General information, not tax or legal advice. Talk to your tax preparer or attorney about your situation.
Ohio starts from federal adjusted gross income, so a self-employed driver's federal mileage deduction carries over, and the first $250,000 of business income is deducted. Ohio adds back 5/6 of bonus depreciation and most Section 179 expense, then lets you deduct it in later years. Rideshare companies hold PUCO permits and keep trip records two years.
Ohio's return follows federal AGI, with a depreciation add-back and a large business income deduction that many self-employed drivers use. This guide covers what the Ohio Department of Taxation and the Ohio Revised Code say as of October 16, 2026.
The federal baseline every Ohio 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 Ohio treats vehicle deductions
The 2025 Ohio IT 1040 booklet starts the return with federal adjusted gross income (line 1), so a Schedule C vehicle deduction is already reflected. For 2025, taxable nonbusiness income above $100,000 is taxed at 3.125%. The booklet doesn't list a separate Ohio deduction for unreimbursed employee business expenses.
Business income deduction
The booklet says you can deduct the first $250,000 ($125,000 married filing separately) of business income included in federal AGI, and any business income above that is taxed at a flat 3%. Income from a sole proprietorship is generally business income. Your vehicle deduction lowers business income first, so your preparer will want the same log.
Depreciation: the 5/6 add-back
On the Ohio Schedule of Adjustments, line 9, you add back 5/6 of your federal bonus depreciation under IRC 168(k). You also add back 5/6 of your Section 179 expense above what Section 179 allowed as it existed on December 31, 2002. The fraction is 2/3 for employers that raised Ohio withholding by at least 10%, and 6/6 if the depreciation created a federal net operating loss. You deduct the add-back in later years: 1/5 of a 5/6 add-back each year (booklet, deductions section). See robotaxi fleet depreciation and Section 179.
Rideshare (TNC) rules in Ohio
Under Ohio Revised Code chapter 4925, the Public Utilities Commission of Ohio (PUCO) issues one-year TNC permits for a $5,000 fee (section 4925.02). The company sends riders an electronic receipt with origin, destination, distance, time and an itemized fare (section 4925.03). Section 4925.07 requires records of drivers, and of each ride, for at least two years. Under section 4925.08 you may accept cash only if the company authorizes it, and you must tell the company. You can't take passengers outside the app while logged on. Section 4925.09 makes TNC regulation statewide and preempts local licensing and taxes, with an airport exception. See which rideshare miles count.
Robotaxis and autonomous vehicles in Ohio
Ohio's TNC chapter (R.C. 4925) doesn't address automated vehicles, and Ohio's traffic-law definitions (R.C. 4511.01) don't define automated driving systems. If you're planning a driverless fleet in Ohio, check the Ohio Department of Transportation's current guidance and talk to an attorney. Federal record-keeping for a fleet is the same as anywhere; see robotaxi fleet tax basics.
What to keep in your Ohio 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 Section 179 federally: the amounts by year, since Ohio's add-back is deducted over later years.
- For rideshare: keep ride receipts and annual summaries, and note any cash rides you reported to the company.
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 Ohio 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)
- Ohio Department of Taxation, 2025 IT 1040 booklet
- Ohio Revised Code chapter 4925
- Ohio Revised Code section 4511.01
- IRS, Standard mileage rates; IRS Publication 463; IRS Topic 510
Frequently asked questions
Does Ohio use my federal mileage deduction?
Generally yes for the self-employed. The Ohio IT 1040 starts from federal adjusted gross income, which already includes Schedule C vehicle expenses.
Do Ohio rideshare drivers get the business income deduction?
Income from a sole proprietorship is generally business income, and Ohio deducts the first $250,000 of it ($125,000 married filing separately), per the 2025 booklet.
How does Ohio handle bonus depreciation?
You add back 5/6 of federal bonus depreciation and 5/6 of Section 179 above the 2002 limits, then deduct the add-back in later years (2025 booklet, line 9).
How long does an Ohio TNC keep ride records?
At least two years after each ride, and driver records at least two years after the driver's last ride (R.C. 4925.07).
Can Ohio rideshare drivers take cash?
Only if the company authorizes it, and the driver must notify the company (R.C. 4925.08).
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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