Per diem is one of the most valuable tax deductions available to truck drivers, but many either don't claim it or don't calculate it correctly. Here's how it actually works.
Per diem is an IRS-set daily rate for meal and incidental expenses when you're away from your tax home overnight for work. Since OTR drivers regularly sleep away from home, most qualify for this deduction on every day they're on the road.
The IRS transportation industry per diem rate for 2026 is 0/day for domestic travel. Some high-cost areas may have a higher rate, but 0/day is the standard rate most drivers use.
Self-employed owner operators can deduct 80% of the per diem rate as a business expense on Schedule C. At 0/day × 80% = 4 deductible per day. Over 200 days on the road, that's a 2,800 deduction.
Company drivers who receive a W-2 generally cannot deduct per diem as an unreimbursed employee expense under current tax law (this changed with the 2017 Tax Cuts and Jobs Act). However, many companies now offer per diem as part of their pay structure instead, paying a portion of wages as a non-taxable per diem allowance. Owner operators, being self-employed, retain the ability to deduct per diem on Schedule C.
Any day you're away from your tax home long enough to require rest — essentially every day of an OTR trip. Partial travel days (departure and return days) are sometimes calculated at 75% of the daily rate, depending on your tax preparer's method.
Keep a simple log noting each day you were away from home overnight. Your ELD logs can support this, but a separate personal log (even a basic spreadsheet or app) is recommended as backup documentation in case of an audit.
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