Per Diem Deductions for Truckers: How to Maximize This Overlooked Tax Benefit
By Victor Schiano, Founder of GuidedLedger | 6 min read
Per diem is one of the most valuable and most underutilized tax deductions for truck drivers. Here's how it works and how to maximize it as an owner-operator.
Per diem is a flat-rate deduction the IRS allows for the cost of meals and incidental expenses when you're away from home overnight for business. For long-haul truckers who spend weeks at a time on the road, this adds up to thousands of dollars in annual deductions — but many owner-operators either don't claim it or don't maximize it correctly.
What Per Diem Covers
The per diem deduction covers meals and incidental expenses (M&IE) when you're away from your tax home overnight for work. It does not cover lodging (that's a separate deduction based on actual costs). The rate for transportation workers in 2024 is $69 per day for domestic travel.
The Transportation Worker Rate
Owner-operators and employee drivers subject to DOT hours-of-service regulations get a special transportation worker per diem rate, which is higher than the standard federal rate. For 2024, it's $69 per full day away from home. For partial days (the first and last day of a trip), you calculate 75% of the rate.
Calculating Your Annual Per Diem Deduction
Keep a log of your days away from home on the road. Multiply full days by $69 and partial travel days by $51.75. For a trucker away from home 250 days per year, that's $17,250 in per diem deductions alone — reducing taxable income by that amount, which could save $4,000–$6,000 in federal taxes.
Self-Employed vs. Employee Per Diem
For self-employed owner-operators, per diem is deducted on Schedule C as a business expense at 80% of the calculated amount (the IRS limits the meal deduction to 80%). For employee drivers, the deduction rules changed under the 2017 Tax Cuts and Jobs Act — currently, employees cannot deduct unreimbursed business expenses on their federal return (though some states still allow it).
Record Keeping Requirements
You need to document the days and destinations of your trips. Your electronic logging device (ELD) records are excellent documentation — they show your hours of service, when you started and ended trips, and your locations. Keep these records in case of audit.
GuidedLedger Captures Every Per Diem Dollar for Truckers
GuidedLedger tracks your mileage logs and trip records throughout the year, calculates your per diem deduction accurately, and ensures you're claiming every day you're entitled to. Most owner-operators we work with have been underclaiming this deduction.