** article updated March 18, 2025 **
As a truck driver, keeping track of expenses is critical—especially when it comes to tax deductions. One of the most valuable tax benefits for truckers is per diem, which helps cover meals and incidental expenses while you’re on the road.
However, not every driver can deduct per diem on their taxes. Whether you can claim this deduction depends entirely on how you’re classified—as a W-2 employee or a 1099 independent contractor (owner-operator).
If you’re not sure where you fall, keep reading. You don’t want to miss out on potential tax savings or risk claiming a deduction you’re not eligible for!
2025 Per Diem Rates for Truck Drivers
As of October 1, 2024, the IRS increased the per diem rates for transportation:
- Continental U.S. (CONUS): $80 per full day
This is an increase from last year’s $69 per day, which means bigger deductions for those who qualify. But that’s the key—who qualifies?
Can You Deduct Per Diem? W-2 vs. 1099 Truckers
Let’s take a look and compair the two and discuss if deducting per diem is an option.
W-2 Company Drivers: No Tax Deduction—Payroll Only
If you’re a W-2 employee, you cannot deduct per diem on your income tax return. The Tax Cuts and Jobs Act of 2017 (TCJA) eliminated the ability for company drivers to claim unreimbursed employee expenses, including per diem.
How Do W-2 Drivers Get Per Diem?
Instead of a tax deduction, W-2 drivers can receive per diem as a reimbursement through payroll, IF their employer offers it. Some trucking companies pay per diem as part of their paycheck, which will reduce taxable income, but put more money in the drivers pocket.
- If your employer offers per diem pay, it’s automatically calculated into your paycheck.
- If your employer doesn’t offer per diem, you cannot claim it as a deduction at tax time.
Pro Tip: If you’re a W-2 driver, ask your payroll department if they offer a per diem program.
1099 Owner-Operators: Yes, You Can Deduct Per Diem
If you’re an independent contractor (1099 trucker or owner-operator), you CAN deduct per diem on your income tax return.
As a self-employed driver, per diem is considered a business expense, meaning you can deduct a portion of your meal and incidental costs while working on the road.
How Much Can 1099 Truckers Deduct?
The IRS allows 1099 truckers to deduct 80% of the per diem rate. That means:
- Full Day on the Road: $80 × 80% = $64 deductible per day
- Partial Day (Departure/Return Days): $80 × 75% × 80% = $48 deductible per day
For example, if you were on the road 200 days in 2025, your total deduction would be:
- 200 days × $64 = $12,800 in deductible per diem expenses
That’s a huge tax-saving opportunity that can significantly lower your taxable income!
What You Need to Track for IRS Compliance
While W-2 drivers don’t need to track per diem if their employer handles it, 1099 truckers MUST keep records to claim the deduction.
- Your records should include:
- Dates of travel (logbook or ELD records work)
- Locations (where you drove, truck stops, cities, etc.)
- Purpose of travel (business-related trips only)
Keeping accurate records is crucial in case of an IRS audit. If you can’t prove your travel history, you might lose the deduction!
Why This Matters for Your Taxes
Understanding per diem rules is crucial to maximize tax savings and avoid mistakes.
- W-2 company drivers should check with their employer about payroll per diem programs
- 1099 truckers should track their days and claim per diem on their tax returns to reduce taxable income
Don’t leave money on the table! If you need help filing your taxes correctly, working with a trucking tax expert can make sure you’re getting every deduction you’re entitled to.
Get Expert Tax Help from Taxes4Truckers
Not sure how to file your per diem deductions correctly? Taxes4Truckers specializes in helping truck drivers navigate tax rules, maximize deductions, and stay compliant with IRS regulations.
Talk to a trucking tax expert today!
Written by Melisa Bush
With over 15 years of experience in the trucking industry, Melisa is well-versed in the complexities of trucking payroll and adept at navigating special circumstances. Before joining Superior Trucking Payroll Service, Melisa worked at a trucking company, where she managed driver miles and expenses for a fleet of 50 trucks. This hands-on experience gives her unique insight into the challenges our clients face when preparing their payroll data.
Melisa’s top priority is customer service. She strives to treat each client as an individual with genuine needs, rather than just another number in the system. Her goal is to alleviate the burdens of our clients and make their daily operations smoother.