Per Diem: How to Track It and What It Means at Tax Time

Per diem is one of the simplest ways drivers and small trucking companies can reduce taxable income and keep more money in their business. But the rules change often, and many owner-operators and carriers aren’t sure which trips qualify, how much they can deduct, or what records they’re supposed to keep. If you’re preparing for the 2026 tax season, a clear understanding of per diem can help you stay compliant and make smarter financial decisions.

What is Trucker Per Diem?

Per diem is a daily allowance the IRS allows transportation workers to claim for meals and incidental expenses when they are traveling for work and must stay overnight away from their tax home- meaning their main place of business or family home. Instead of saving individual meal receipts, drivers can use the standard daily rate, which makes recordkeeping and tax preparation much simpler.

In trucking, per diem applies only to meals and incidental expenses and not to lodging. Because drivers spend long stretches on the road, the IRS provides a special per diem rate specifically for transportation workers.

Per diem is not taxable income when it is reimbursed correctly. For self employed drivers, it reduces taxable income at filing time, which can lower the total amount of taxes owed. 

To qualify for per diem, a driver must meet several IRS requirements:

• The trip takes the driver far enough from their home that they cannot reasonably return the same day.
• The driver is away from home long enough to require sleep or rest to perform their job duties.
• The travel is for legitimate business purposes.
• The driver is subject to Department of Transportation Hours of Service regulations.

Special Transportation Industry Per Diem

Transportation workers follow a specific version of per diem that is different from standard business travel. These are the core attributes that make it unique for truck drivers.

A single nationwide rate
Drivers use one uniform daily rate for meals and incidental expenses rather than location-based rates. For travel in the United States during 2025, the full-day rate is $80.

A higher deductible percentage
Most business travelers can deduct 50% of meal expenses. Qualified drivers in the transportation industry can deduct 80%, which reflects the amount of time they spend away from home.

Tax-free when reimbursed correctly
When a carrier reimburses per diem under an accountable plan and the driver provides basic documentation; the payment is not considered taxable income and not treated as wages.

Who Can Claim Per Diem

Only self-employed drivers who follow DOT Hours of Service rules and who are away from home overnight can deduct per diem on their federal return.

It is important to know that truck drivers cannot claim per diem as a federal tax deduction unless they are self-employed.

Drivers who are not eligible include:

• Local drivers who start and end their trip at home on the same 14-hour HOS workday.
• Employee drivers who receive a W-2. As of January 1, 2018, they cannot claim per diem as an itemized deduction on their federal return.

Employee drivers may still receive per diem from their carrier if they are subject to HOS rules and travel away from home overnight. In this case, the payment is not taxable income but is treated as a non-taxable reimbursement under an accountable plan.

Trucker Per Diem Documentation

Even though meal receipts are not required for per diem, drivers still need to keep basic records to meet IRS standards. Each trip must show the time, date, and general location of the travel. Most carriers rely on DOT Electronic Logging Devices for this information, as ELD data already captures duty status, rest breaks, and overnight stays. ELD records should be backed up and kept for at least three years from the date the tax return is filed.

Some carriers and owner-operators use tools like Per Diem Plus to simplify this process. These platforms create IRS-compliant documentation automatically and maintain records for the required retention period, which helps reduce the risk of missing information at tax time.

A Practical Option for Managing Per Diem

While ELDs provide the basic documentation needed to support per diem, many fleets prefer using a dedicated system to handle the details for them. Services such as Per Diem Plus automate the recordkeeping, apply the correct daily rates, and help ensure drivers and carriers receive the full tax benefit they qualify for.

Managing per diem accurately throughout the year makes tax season easier, strengthens compliance, and helps drivers keep more of what they earn. Whether you choose to rely on your existing ELD data or use a per diem management tool, consistent documentation is the key to getting the maximum benefit with confidence.

Outsourcing Per Diem

While an ELD is a viable option to keep track of documentation for trucker per diem, there are services, like Per Diem Plus to help. These applications are IRS-compliant and help you maximize your savings at tax time.