Virginia Mileage and Vehicle Tax Records (2026): Bonus Depreciation Add-Back, DMV TNC Rules and the AV Work Group
General information, not tax or legal advice. Talk to your tax preparer or attorney about your situation.
Virginia starts from federal adjusted gross income, so a self-employed driver's federal mileage deduction carries over. Virginia conforms to the federal tax code as of December 31, 2025, but not to bonus depreciation or the 2025 increase in Section 179 limits, so those are recalculated. Rideshare companies need a DMV certificate of fitness.
Virginia follows the federal code with a fixed date and a short list of exceptions, and two of them touch vehicles. This guide covers what Virginia Tax and the Code of Virginia say as of October 16, 2026.
The federal baseline every Virginia 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 Virginia treats vehicle deductions
The 2025 Form 760 instructions say Virginia's starting point is federal adjusted gross income, so a Schedule C vehicle deduction is already reflected. The instructions also say Virginia suspended rolling conformity and uses a fixed conformity date of December 31, 2025. The 2025 instructions don't list a separate Virginia deduction for unreimbursed employee business expenses.
Depreciation: two exceptions that matter for vehicles
Va. Code § 58.1-301 lists federal provisions Virginia doesn't follow. Item 1 is the special depreciation allowance under IRC 168(k) and related sections (bonus depreciation). Item 12 is § 70306 of P.L. 119-21 (2025), the increased dollar limits for Section 179 expensing. Virginia Tax's additions page says that if your federal deduction included bonus depreciation, you recalculate depreciation on those assets for Virginia, and if the Virginia figure is lower, you add back the difference. Additions are reported on Schedule ADJ. Because the Virginia deduction is smaller in the first year, later years can differ too, so keep both schedules. See robotaxi fleet depreciation and Section 179.
Rideshare (TNC) rules in Virginia
Va. Code § 46.2-2099.45 says no one may run a transportation network company on an intrastate basis without a certificate of fitness from the Department of Motor Vehicles. Under Article 15, the DMV has control, supervision and regulation of TNCs, TNC partners (drivers) and their vehicles (§ 46.2-2099.46). After each ride, the company sends the rider an electronic receipt with a route map, start and end times and the fare (§ 46.2-2099.48 J). The company keeps driver-activity data, including the start and end times and locations of each ride (§ 46.2-2099.53).
A new § 46.2-2099.54, effective January 1, 2027 (2026 Acts, chapters 1017 and 1094), adds two driver records. Each week the company gives you a summary of total fares collected, the amount you earned and your percentage. Within 24 hours of each ride, you get an itemized receipt showing what the passenger paid, the fees applied, your share and any tip. Those receipts help your preparer reconcile income, but they don't replace a mileage log. See which rideshare miles count.
Robotaxis and autonomous vehicles in Virginia
This guide doesn't summarize a Virginia permit process for commercial driverless service. In 2026, the General Assembly passed HB 1124. Its enrolled text directs the work group convened by the Secretary of Transportation under Chapter 498 of the 2025 Acts to assess the workforce impacts of autonomous vehicles, including job losses and gains, by November 1, 2026. If you're planning a fleet, check with the DMV and an attorney. For fleet records, see robotaxi fleet tax basics.
What to keep in your Virginia 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 the higher 2025 Section 179 limits: keep federal and Virginia depreciation schedules side by side for every year you own the car.
- For rideshare: save weekly summaries and per-ride receipts; starting in 2027 the company must send them to you.
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 Virginia 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)
- Virginia Tax, 2025 Form 760 instructions
- Virginia Tax, Additions to income
- Va. Code § 58.1-301
- Va. Code § 46.2-2099.45
- Va. Code Title 46.2, Chapter 20, Article 15
- Code of Virginia, Title 46.2
- HB 1124 (2026), enrolled text
- IRS, Standard mileage rates; IRS Publication 463; IRS Topic 510
Frequently asked questions
Does Virginia use my federal mileage deduction?
Generally yes for the self-employed. Virginia starts from federal adjusted gross income, which already includes Schedule C vehicle expenses.
Does Virginia allow bonus depreciation?
No. Va. Code § 58.1-301 excludes IRC 168(k), so you recalculate depreciation and add back any difference on Schedule ADJ.
Does Virginia follow the 2025 Section 179 increase?
No. § 58.1-301 lists § 70306 of P.L. 119-21, the increased Section 179 dollar limits, as an exception to conformity.
Who regulates rideshare companies in Virginia?
The Department of Motor Vehicles, which issues TNC certificates of fitness under Va. Code § 46.2-2099.45.
What did Virginia do on autonomous vehicles in 2026?
HB 1124 (2026) directs the state work group convened under Chapter 498 of the 2025 Acts to assess autonomous vehicles' workforce impacts by November 1, 2026. Vehicle rules are in Code of Virginia Title 46.2.
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.
CyberDeduct is an independent product of LIKE LLC and is not affiliated with or endorsed by Tesla, Inc. Tesla is a trademark of Tesla, Inc.