Oregon Mileage and Vehicle Tax Records (2026): Construction Commute Subtraction, Depreciation and Portland AV Rules
General information, not tax or legal advice. Talk to your tax preparer or attorney about your situation.
Oregon starts from federal adjusted gross income, so a self-employed driver's federal mileage deduction carries over, and Oregon depreciation is generally the same as federal. Qualified construction workers and loggers may subtract some commuting costs to job sites more than 50 miles from home. Portland permits rideshare companies, and Oregon doesn't regulate AV testing.
Oregon follows federal law closely for vehicle costs, with one unusual commuting subtraction and city-level rideshare rules. This guide covers what the Oregon Department of Revenue, ODOT and the City of Portland say as of October 16, 2026.
The federal baseline every Oregon 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 Oregon treats vehicle deductions
Publication OR-17 (2025) says most of the information on your Oregon return comes from your federal return, so a Schedule C vehicle deduction is already reflected. OR-17 also sets out the vehicle records to retain: the mileage for each business use, total miles for the year, a trip log kept at the time of use with the date, mileage and odometer readings for each business use, and the business reason.
Depreciation
OR-17 says your Oregon depreciation is generally the same as federal. Differences arise in a few cases, for example assets placed in service in 2009 or 2010 when you claimed bonus depreciation or extra Section 179 expensing, or property moved into Oregon. Those use addition code 152 or subtraction code 354 (OR-CODES) and Schedule OR-DEPR. OR-17 also says that, as of its last revision, Oregon hadn't disconnected from any new federal depreciation provisions for the tax year. See robotaxi fleet depreciation and Section 179.
Construction worker and logger commuting subtraction
Under ORS 316.812, 316.824 and 316.832 (subtraction code 303), a qualified construction worker or logger may subtract certain costs of commuting to work sites more than 50 miles from home. OR-17 says you use either actual costs of gas, oil, repairs and maintenance or the standard mileage rate, not both. You can't claim depreciation. You need a mileage log of qualifying trips and your start and end odometer readings for the year. Construction workers must belong to a recognized trade, craft or union. See commuting vs. business miles.
Rideshare (TNC) rules in Oregon
In Portland, TNCs are regulated under City Code chapter 16.40, Private For-Hire Transportation Regulations, which covers TNC drivers and companies along with taxis and other for-hire services. If you drive elsewhere in Oregon, check the city's rules. Keep your own mileage log and save ride receipts. See which rideshare miles count.
Robotaxis and autonomous vehicles in Oregon
ODOT's automated vehicles page says Oregon doesn't currently regulate AV testing; companies can file a voluntary testing notification so ODOT can share work-zone and lane-closure information. Portland's AV page says City Council adopted administrative rule TRN-14.34 in 2018 to regulate AV testing with a permit and limit for-hire AVs. No permits have been issued, and the city is updating the rule in 2026. For fleet records, see robotaxi fleet tax basics.
What to keep in your Oregon 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 claim the construction or logging commuting subtraction: log each qualifying trip and record start and end odometer readings for the year, plus fuel and repair receipts.
- For rideshare: download 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
An Oregon 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)
- Oregon DOR, 2025 Publication OR-17
- Oregon DOR, 2025 OR-CODES
- ODOT, Automated vehicles
- City of Portland, Automated vehicles
- Portland City Code chapter 16.40
- IRS, Standard mileage rates; IRS Publication 463; IRS Topic 510
Frequently asked questions
Does Oregon use my federal mileage deduction?
Generally yes for the self-employed. Most information on the Oregon return comes from the federal return, which already includes Schedule C vehicle expenses.
Does Oregon follow federal depreciation?
Generally yes. OR-17 says Oregon depreciation is usually the same as federal, with exceptions such as 2009 and 2010 bonus depreciation.
Can Oregon construction workers deduct commuting miles?
Qualified construction workers and loggers may subtract certain costs of commuting to sites more than 50 miles from home (subtraction code 303).
What vehicle records does Oregon want?
OR-17 lists mileage for each business use, total annual miles, a trip log kept at the time with odometer readings, and the business reason.
Are robotaxis allowed in Portland?
Portland's TRN-14.34 rule requires a permit for AV testing and limits for-hire AVs. No permits have been issued, and the city is updating the rule in 2026.
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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