Rhode Island Mileage and Vehicle Tax Records (2026): Federal AGI, the Bonus Depreciation Add-Back, TNC Permits and Two-Year Records

General information, not tax or legal advice. Talk to your tax preparer or attorney about your situation.

Rhode Island starts Form RI-1040 from federal adjusted gross income, so a self-employed driver's federal mileage deduction carries over, and 2025 rates run from 3.75% to 5.99%. Rhode Island disallows federal bonus depreciation, so you add it back on Schedule M and keep a separate state depreciation schedule. Rideshare companies keep trip records at least two years.

Rhode Island follows your federal adjusted gross income but keeps its own depreciation schedule for bonus depreciation. This guide covers what the Rhode Island Division of Taxation and the Rhode Island General Laws say as of October 16, 2026.

The federal baseline every Rhode Island 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 Rhode Island treats vehicle deductions

The 2025 Form RI-1040 instructions start from your federal adjusted gross income, so a Schedule C vehicle deduction, figured with the standard mileage rate or actual costs, is already reflected. Modifications come from Schedule M. The 2025 rate schedule is 3.75% on taxable income up to $79,900, 4.75% up to $181,650 and 5.99% above that.

Depreciation: bonus add-back and a separate schedule

The instructions say Rhode Island disallows federal bonus depreciation. Any bonus depreciation taken federally is added back on Schedule M, page 2, line 2d. In later years, when federal depreciation is less than what would otherwise have been allowed, you subtract the difference (Schedule M, page 1, line 1i). A separate depreciation schedule must be kept for Rhode Island, and gain or loss on a sale uses the Rhode Island figures. For Section 179, Rhode Island conforms to the federal amounts for assets placed in service on or after January 1, 2015. See robotaxi fleet depreciation and Section 179.

Rideshare (TNC) rules in Rhode Island

Rhode Island's TNC law is R.I. Gen. Laws chapter 39-14.2, enacted in 2016. Under § 39-14.2-5, no one may operate a TNC without a permit from the Division of Public Utilities and Carriers. Under § 39-14.2-20, a TNC keeps trip records (date, time, pickup and drop-off, distance, duration and fare) for at least two years from December 31 of the year of service. It also keeps driver records of log-in and log-out times, trips, miles driven and fares. Download your own receipts and annual summaries too. See which rideshare miles count. If you also drive in a neighboring state, see the Massachusetts and Connecticut guides.

Robotaxis and autonomous vehicles in Rhode Island

For current rules on testing or deploying driverless vehicles in Rhode Island, check with the Rhode Island Department of Transportation or an attorney. If you run a fleet, the federal rules for depreciation and vehicle records still apply, along with Rhode Island's bonus depreciation add-back. See robotaxi fleet tax basics.

What to keep in your Rhode Island 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 a separate Rhode Island depreciation schedule for any vehicle with federal bonus depreciation.
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 Rhode Island 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)

Frequently asked questions

Does Rhode Island use my federal mileage deduction?

Generally yes for the self-employed. Form RI-1040 starts from federal adjusted gross income, which already reflects Schedule C vehicle expenses.

Does Rhode Island allow bonus depreciation?

No. Federal bonus depreciation is added back on Schedule M, page 2, line 2d, and the difference is subtracted in later years on line 1i.

What are Rhode Island's 2025 income tax rates?

3.75% up to $79,900 of taxable income, 4.75% up to $181,650 and 5.99% above that.

How long do Rhode Island TNCs keep trip records?

At least two years from December 31 of the year the ride was provided, under § 39-14.2-20.

Who permits rideshare companies in Rhode Island?

The Division of Public Utilities and Carriers, under § 39-14.2-5.

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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