By CyberDeduct · October 16, 2026

Tags: #washington #irs #mileage-log #rideshare #robotaxi

Washington Mileage and Vehicle Tax Records (2026): No Wage Income Tax, B&O and Rideshare Rules

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

Washington doesn't currently have an individual income tax, so business mileage is a federal deduction. The state's business and occupation (B&O) tax is a gross receipts tax with no deduction for expenses; rideshare income is instead subject to public utility tax. Rideshare companies keep trip records three years, and driverless testing requires self-certification.

Washington drivers keep a mileage log for the IRS, but they may still meet two state gross receipts taxes. This guide covers what the Washington Department of Revenue (DOR) and the Revised Code of Washington (RCW) say as of October 16, 2026.

The federal baseline every Washington 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 individual income tax today, and a change scheduled for 2028

DOR's income tax page says Washington does not currently have an individual income tax. The same page says that, beginning January 1, 2028, a new 9.9% tax established by Senate Bill 6346 (2026 Legislature) will apply to individuals and joint filers with annual adjusted gross income over $1 million, with first returns due in April 2029. Washington does tax long-term capital gains above an annual threshold under RCW 82.87: the Department of Revenue's capital gains page lists a standard deduction of $278,000 for 2025, adjusted annually for inflation, and RCW 82.87.040 imposes an excise tax equal to seven percent of an individual's Washington capital gains plus, beginning January 1, 2025, an additional 2.90 percent on the portion exceeding $1,000,000 (DOR's tiered-rate notice states 7% on the first $1 million of taxable Washington capital gains and 9.9% above that), and that tax is not a tax on wages or mileage. For 2026, your log supports your federal Schedule C and Form 4562 Part V.

B&O tax: a tax on gross receipts

DOR describes the business and occupation (B&O) tax as a gross receipts tax that most businesses in Washington pay. It's calculated on gross income, so businesses can't deduct expenses such as labor, materials or other costs of doing business. The rate depends on the activity, with more than 50 classifications, and credits such as the Small Business B&O Tax Credit may reduce it. Your mileage doesn't lower B&O tax.

Rideshare income: public utility tax instead of B&O

DOR's ride-share guidance says gross income from transporting others for hire in Washington is subject to public utility tax (PUT) under the Motor Transportation or Urban Transportation classification, instead of B&O tax. It's generally due only on trips that begin and end in Washington, and DOR's motor and urban transportation page lists "operating taxicabs or ride share vehicles" in that group. Ask DOR or your preparer whether you need to register.

Rideshare (TNC) rules in Washington

Under RCW chapter 46.72B, a TNC needs an annual permit from the Department of Licensing (RCW 46.72B.030). RCW 46.72B.130 requires the company to keep individual trip records for at least three years from the end of the calendar year of each trip. Insurance must cover 50/100/30 liability while you're logged in and waiting, and $1 million combined single limit during a ride (RCW 46.72B.180). RCW 46.72B.190 makes TNC regulation a state matter, with limited exceptions for some large-city rules in place by January 1, 2022.

RCW 49.46.300 sets per-mile, per-minute and per-trip pay minimums and requires an electronic receipt to the driver within 24 hours of each dispatched trip. Companies must keep per-trip receipts downloadable for two years. From July 1, 2026, a driver can also request one searchable file covering the previous 24 months, due within three business days. See which rideshare miles count.

Robotaxis and autonomous vehicles in Washington

RCW 46.92.010 sets up the Department of Licensing's autonomous vehicle self-certification testing pilot program. Before testing, the entity provides contact details, testing locations, VINs and proof of insurance, and gives local and state law enforcement written notice 14 to 60 days in advance. It reports collisions and violations annually. The chapter covers testing; check with the Department of Licensing and an attorney about commercial driverless service. See robotaxi fleet tax basics.

What to keep in your Washington 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: download your per-trip receipts at least every two years, or request the 24-month file, and keep them with your mileage log.
Keep gross receipts by trip type, since PUT generally applies to trips that begin and end in Washington.

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

Washington doesn't tax wages or self-employment earnings on a personal income tax return today, so for most drivers your mileage log serves your federal return. The income tax section above covers the capital gains tax and the tax on income over $1 million starting in 2028. 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 Washington tax my rideshare or self-employment income?

Not with an income tax for 2026; DOR says Washington doesn't currently have an individual income tax. Rideshare gross income is subject to public utility tax instead of B&O tax, per DOR's ride-share guidance.

Can I deduct mileage from Washington B&O tax?

No. DOR says B&O tax is figured on gross receipts, and businesses can't deduct costs such as labor, materials or other expenses. Mileage matters for your federal return.

Is Washington adding an income tax?

DOR says a 9.9% tax on adjusted gross income over $1 million takes effect January 1, 2028, under Senate Bill 6346, with first returns due in April 2029.

How long does a Washington TNC keep trip records?

At least three years from the end of the calendar year of each trip (RCW 46.72B.130). Driver receipts stay downloadable for two years (RCW 49.46.300).

Can driverless cars be tested in Washington?

Yes, under the Department of Licensing's self-certification testing pilot program in RCW 46.92.010, with insurance, law enforcement notice and annual reporting.

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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