Reviewed by Anil Rajput, CPA · Last reviewed July 2026
Quick answer: Per diem is a flat daily deduction for meals and incidental expenses while you are away from home overnight for work. For 2026, the IRS transportation-industry rate is $80 per full day in the continental United States and $86 outside it, and drivers subject to Department of Transportation hours-of-service rules deduct 80% of it. Only owner-operators and other 1099 drivers can claim it. W-2 company drivers cannot, because the Tax Cuts and Jobs Act removed that deduction. It covers meals and incidentals only, not lodging, and it is often the single largest deduction an over-the-road owner-operator has.
This guide is general information, not tax advice. Per diem rates, deductible percentages, and eligibility rules change and depend on your situation. Verify the current rate with IRS Notice 2025-54 and confirm your own eligibility with a qualified tax professional before you file.
What is truck driver per diem?
Per diem, Latin for per day, is a fixed daily amount the IRS lets you deduct for meals and incidental expenses while traveling away from your tax home for work, instead of saving and totaling every meal receipt. For over-the-road drivers who eat every meal on the road for weeks at a time, it is a large, low-effort deduction: you deduct a set amount for each qualifying day rather than tracking hundreds of receipts.
It is one of the biggest reasons owner-operators owe less tax than their gross suggests. For how it fits the wider picture, see our guide to how much owner-operators pay in taxes.
What is the per diem rate for 2026?
Under IRS Notice 2025-54, effective October 1, 2025 and running through the 2026 filing season, the special transportation-industry rate for meals and incidental expenses is:
- $80 per full day for travel anywhere in the continental United States (CONUS)
- $86 per full day for travel outside the continental United States (OCONUS)
Drivers subject to DOT hours-of-service rules deduct 80% of that amount, not 50% like most other taxpayers. So a $80 full day produces a $64 deduction. That 80% figure is a specific break for regulated transportation workers and is one of the most under-claimed rules in trucking. A partial day, your first and last day of a trip, is deducted at three-quarters of the rate, or $60 for a CONUS day.
Who can actually claim per diem?
This is where drivers most often get it wrong:
- Owner-operators and 1099 drivers: yes. You report income and expenses on Schedule C, and per diem reduces your taxable business income there.
- W-2 company drivers: no. The Tax Cuts and Jobs Act eliminated the unreimbursed employee expense deduction, so company drivers can no longer claim per diem on their own return. Some carriers run a company per diem program that pays part of your wages as a tax-free allowance instead, which is a different mechanism.
If you are weighing 1099 versus W-2 work, the per diem difference is one piece of the math, covered alongside the rest in our guide to 1099 versus W-2 for truck drivers.
What counts as a day away from home?
You must be away from your tax home long enough to require sleep or rest before returning, generally an overnight. A day trip where you return home the same night does not qualify, no matter how many hours or miles it involved. Your tax home is your main place of business, not necessarily where your family lives.
The number that drives your deduction is your count of qualifying days, so the records that matter most are the ones proving where you were and when. Your ELD logs, trip sheets, and settlement records establish the days you were out, which is exactly why clean records turn per diem from a guess into a defensible number.
How do you calculate and record per diem?
The method is simple: count your qualifying days, apply the rate, then apply the 80%. A worked example for an owner-operator on the road most of the year:
- Full days away; Count: 250; Rate: $80; Subtotal: $20,000
- Partial days (first and last); Count: 30; Rate: $60; Subtotal: $1,800
- Total per diem base; ; ; $21,800
- Deductible at 80%; ; ; $17,440
That $17,440 comes off your taxable business income without a single meal receipt. What the IRS wants instead is proof of the days: a log of where you were and when, backed by ELD and trip records. Estimating days from memory rather than keeping a log is the fastest way to lose the deduction in an audit, a risk we cover in what triggers an IRS audit for truckers.
What per diem does not cover
Per diem is meals and incidental expenses only. It does not include lodging. A self-employed owner-operator cannot use a lodging per diem at all, so any hotel or motel cost has to be deducted separately using actual receipts. Fuel, repairs, tolls, and everything else you spend on the truck are also separate deductions, not part of per diem. Per diem replaces your meal receipts, nothing more.
Frequently asked questions
Under IRS Notice 2025-54, the special transportation-industry rate is $80 per full day in the continental United States and $86 outside it, effective October 1, 2025. Drivers subject to DOT hours-of-service rules deduct 80% of that, so a full CONUS day yields a $64 deduction. First and last travel days are deducted at three-quarters of the rate.
Not on their own tax return. The Tax Cuts and Jobs Act removed the unreimbursed employee expense deduction, so W-2 company drivers cannot deduct per diem themselves. Only owner-operators and 1099 drivers can. Some carriers offer a company per diem program that pays part of wages as a tax-free allowance, which works differently and is set up by the carrier.
Drivers subject to DOT hours-of-service rules deduct 80% of the per diem amount. That is more generous than the 50% limit that applies to most other taxpayers, but it is not 100%. So on the $80 CONUS rate, the deductible amount is $64 per full day.
Not for meals. The whole point of per diem is to replace meal receipts with a flat daily rate. What you do need is proof of the days you were away from home overnight, which your ELD logs, trip sheets, and settlement statements provide. Lodging is different and still requires actual receipts.
No. Per diem covers meals and incidental expenses only. Lodging is separate, and a self-employed owner-operator must deduct hotel and motel costs using actual receipts rather than a per diem amount. Keep those receipts with your records.
As many days as you were legitimately away from your tax home overnight for work, with records to prove it. There is no arbitrary cap, but every day you claim must be a real day you were out. A driver on the road 250-plus days a year can build a very large deduction, which is exactly why documentation matters.
Turn every road day into a deduction you can defend
Per diem is only as good as the day count behind it, and the day count is only as good as your records. Ace Global gives owner-operators and small fleets a dedicated bookkeeper backed by CPAs who tracks your days away, keeps your trip and settlement records organized, and makes sure your largest deduction is captured and audit-ready at year-end. Flat pricing, no long-term contracts, answers on WhatsApp or iMessage. Get started with Ace Global today.
Related reading
- How much do owner-operators pay in taxes?
- 1099 vs. W-2 for truck drivers
- What triggers an IRS audit for truckers?
Sources
- IRS - Notice 2025-54, 2025-2026 Special Per Diem Rates
- IRS - About Publication 463, Travel, Gift, and Car Expenses
- IRS - About Schedule C (Form 1040)
This article is for informational purposes only and does not constitute tax or accounting advice. Per diem rates, deductible percentages, and eligibility change over time and depend on your circumstances. The example is an illustration, not a projection. Verify the current rate with IRS Notice 2025-54 and consult a qualified professional about your situation.