Texas Mileage and Vehicle Tax Records (2026): No Income Tax, Rideshare Law and Robotaxi Authorization
General information, not tax or legal advice. Talk to your tax preparer or attorney about your situation.
Texas has no personal income tax: its constitution bars a tax on individuals' net income, so your mileage deduction matters only on your federal return. Entities may owe the separate franchise tax. Rideshare companies are permitted by TDLR under Occupations Code chapter 2402, and commercial automated vehicles have needed TxDMV authorization since May 28, 2026.
For a Texas driver, the mileage log is a federal document first. This guide covers what Texas law adds as of October 16, 2026.
The federal baseline every Texas 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).
No personal income tax in Texas
Since 2019, Article VIII, Section 24-a of the Texas Constitution says the Legislature may not impose a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income. The Texas Legislative Council's analysis of the 2019 amendment (HJR 38) explains the change. So there is no Texas individual return on which to claim mileage, and no state add-backs or employee-expense rules to track.
Your federal return still needs the log. A Schedule C deduction for business miles, a Section 179 claim on a heavy vehicle, and the business-use percentage on Form 4562 Part V all rest on it.
Franchise tax if you operate through an entity
The Texas Comptroller describes the franchise tax as a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas. For report years 2026 and 2027 the Comptroller lists a no-tax-due threshold of $2,650,000. If you drive through an LLC or corporation, ask your preparer whether a report is due.
Rideshare (TNC) rules in Texas
Texas regulates rideshare statewide in Occupations Code chapter 2402, and cities may not add their own taxes, licenses or rate rules (section 2402.003). The Texas Department of Licensing and Regulation issues TNC permits. Points that touch your records:
- Receipts: after each ride the company must send the passenger a receipt with the origin and destination, the total time and distance, and the fare (section 2402.105).
- Company records: a TNC must keep individual ride records for at least five years (section 2402.151). That's the company's duty, not a substitute for your own log.
- Contractor status: a driver is an independent contractor if the company doesn't set hours, restrict other apps, limit territory or bar other work, and both agree in writing (section 2402.114). That's the usual path to Schedule C.
- Insurance: chapter 1954 of the Insurance Code applies to TNCs and logged-in drivers (section 2402.101).
The IRS doesn't publish a rideshare-specific list of which miles count; see which rideshare miles count.
Robotaxis and automated vehicles in Texas
According to the TxDMV Automated Vehicles program, Senate Bill 2807 (89R) requires companies to hold a TxDMV authorization before operating vehicles controlled by automated driving systems commercially, and the requirement became enforceable on May 28, 2026. TxDMV says individually owned vehicles operated for personal use don't need an authorization. The rules sit in Transportation Code chapter 545, subchapter J.
SB 2807 also amended chapter 2402: an entity that lets passengers book rides in an automated motor vehicle through its app is a TNC, and a reference to a "driver" includes an automated vehicle except where a rule only makes sense for a human (section 2402.005). For the insurance side, see robotaxi insurance and business-use records in Texas. Check current rules with an attorney.
What to keep in your Texas 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.
- For rideshare: keep the platform's annual summary and ride receipts as supporting evidence; your own log adds miles the receipts don't show, such as driving to a pickup.
- If you operate through an entity: keep vehicle records in the entity's name and ask your preparer about the franchise tax report.
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 your federal return
With no Texas individual income tax return, your mileage log mainly serves your federal return; 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)
- Texas Legislative Council, Analyses of Proposed Constitutional Amendments (2019)
- Texas Comptroller, Franchise Tax
- Texas Occupations Code ch. 2402
- TDLR, Transportation & Delivery Network Companies
- TxDMV, Automated Vehicles program
- IRS, Standard mileage rates; IRS Publication 463; IRS Topic 510
Frequently asked questions
Do I file a Texas income tax return for my mileage?
No. Texas doesn't tax individuals' net income (Texas Constitution, Article VIII, Section 24-a). Your mileage deduction is claimed on your federal return.
Does Texas franchise tax apply to me?
It applies to taxable entities formed or doing business in Texas, according to the Comptroller. Ask your preparer whether your LLC or corporation must file.
What records must a Texas rideshare company keep?
Individual ride records for at least five years, plus driver records, under Occupations Code section 2402.151. Keep your own log as well.
Can a rideshare company use automated vehicles in Texas?
Chapter 2402 treats an entity offering rides in automated motor vehicles through its app as a TNC (section 2402.005), and TxDMV authorization is needed for commercial operation since May 28, 2026. Check current rules with an attorney.
Does my personal car with driver-assistance features need a TxDMV authorization?
TxDMV says individually owned vehicles operated for personal use don't require an authorization.
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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