2025 Trucking per Diem

The per diem deduction for truck drivers is a valuable tax break that lets you deduct a set amount for meals and incidental expenses while on the road. For 2025, the standard per diem rate is $69 per day for travel within the continental United States, with a reduced rate of $52 for the first and last day of travel. This guide explains how the per diem works, who qualifies, and how to claim it correctly.

What Is the Trucking Per Diem?

The per diem is a daily allowance the IRS lets you deduct for meals and incidental expenses (like tips or laundry) when you’re away from home overnight for work. Instead of tracking every receipt, you use a fixed daily rate. For truck drivers, this is especially useful because you spend many nights on the road.

For 2025, the IRS sets the standard per diem rate at $69 per day for travel within the lower 48 states. The rate for the first and last day of travel is 75% of the full rate, which equals $51.75, but the IRS rounds it to $52. If you travel outside the continental U.S. (Alaska, Hawaii, or international), rates are higher, but most drivers stay within the lower 48.

Who Qualifies for the Per Diem Deduction?

You qualify if you are an employee driver or an owner-operator with a business that requires you to be away from your tax home overnight. Your tax home is generally the city or area where your main place of business is located. If you’re an employee, you must have unreimbursed expenses. If you’re an owner-operator, you deduct the per diem as a business expense on your Schedule C.

Important: You cannot claim per diem for days you are not away from home, such as local routes where you return home each night. Also, if your employer reimburses you for meals on a per diem basis and that reimbursement is excluded from your income, you cannot double-dip. But if your employer pays you a per diem that is included in your W-2 wages, you can deduct it as an itemized deduction, subject to the 2% AGI floor (which is suspended through 2025, but check current rules).

Per Diem Rates for 2025: What You Need to Know

The IRS updates per diem rates each year. For 2025, the standard rate is $69 per day. This rate covers meals and incidental expenses. If you are an employee, you can only deduct 80% of the per diem for meals, because the IRS limits meal deductions to 80%. So your actual deduction is $55.20 per day (80% of $69). For the first and last day, the rate is $52, and 80% of that is $41.60.

If you are an owner-operator, you deduct the full per diem as a business expense on Schedule C, but the 80% rule still applies to the meal portion. However, for 2025, the 80% limit is still in effect, but there is a temporary 100% deduction for business meals from 2021 and 2022, but that has expired. So for 2025, use 80%.

Here’s a quick breakdown:

Travel Day	Full Rate	80% Deduction (Employee)
Full day	$69	$55.20
First/Last day	$52	$41.60

How to Claim the Per Diem: Employee vs. Owner-Operator

The way you claim per diem depends on your employment status.

For Employee Drivers

If you are a company driver, you can claim per diem as an itemized deduction on Schedule A, but only if you have unreimbursed employee expenses. However, the Tax Cuts and Jobs Act suspended miscellaneous itemized deductions subject to the 2% floor through 2025. This means for tax years 2018 through 2025, you cannot deduct unreimbursed employee expenses, including per diem. So, as of now, employee drivers cannot claim per diem on their federal return. But some states may allow it, so check your state rules.

If your employer provides a per diem that is included in your wages, you cannot deduct it. If your employer pays a per diem that is excluded from income, you cannot deduct it either. So for most employees, the per diem is not available unless the law changes. Always check the latest IRS guidance.

For Owner-Operators

Owner-operators can deduct per diem as a business expense on Schedule C. This is a significant tax break. You need to track your days away from home. You can use a simple log or a per diem tracker app. For each day you are away, you multiply the number of days by the applicable rate. Remember the 80% rule for meals, but the incidental portion is fully deductible. However, the IRS lumps meals and incidentals together, so you just apply 80% to the total per diem.

For example, if you are away 20 full days and 2 travel days (first/last), your calculation would be:

• 20 days x $69 = $1,380
• 2 days x $52 = $104
• Total per diem = $1,484
• 80% deductible = $1,187.20

This reduces your taxable income by over $1,100, which could save you hundreds in taxes.

How to Track Your Per Diem Days

To claim per diem, you need to know how many days you were away from home. Keep a simple log. Many electronic logging devices (ELDs) can track your location and time, but you still need to record overnight stays. You can use a paper log, a spreadsheet, or a per diem tracking app. Some TMS software includes per diem tracking. The key is to be consistent.

Here are practical steps to start this week:

1. Decide on your tracking method: Use a notebook, a spreadsheet, or an app like TruckLogics or RoadWarrior. Make sure it records date, location, and whether you were away overnight.
2. Mark your tax home: Know your tax home address. This is your main place of business, not necessarily where you live.
3. Record every night away: At the end of each day, note if you slept in the truck or at a motel. If you were away from your tax home overnight, that counts.
4. Keep records for at least 3 years: The IRS can audit you, so keep your logs and any supporting documents.

Common Mistakes to Avoid

• Claiming per diem for local routes: If you return home every night, you don’t qualify.
• Not applying the 80% rule: For meals, you can only deduct 80% of the per diem.
• Double-dipping: If your employer gives you a per diem that is excluded from income, you cannot deduct it.
• Forgetting first and last day rules: The rate is lower on those days.
• Not keeping a log: Without a log, you have no proof if audited.

Frequently Asked Questions

Can I claim per diem if I’m a company driver?

As of 2025, employee drivers cannot deduct unreimbursed employee expenses on their federal return due to the suspension of miscellaneous itemized deductions. This is set to expire after 2025, so check for updates. Some states may allow it, so consult a tax professional.

What is the per diem rate for 2025?

The standard rate is $69 per day for travel within the continental U.S. The first and last day rate is $52. These rates are set by the IRS and may change annually.

How do I calculate my per diem deduction?

Multiply the number of full travel days by $69 and the number of partial days by $52. Then multiply the total by 80% to get your deductible amount (for meals). If you’re an owner-operator, you deduct this on Schedule C.

Do I need receipts for per diem?

No, you don’t need receipts for meals if you use the per diem method. But you do need to keep a log of your days away from home. The IRS may ask for your log if audited.

The Bottom Line

The per diem deduction is a valuable tax break for owner-operators, potentially saving you thousands each year. For 2025, the rate is $69 per day, with a reduced rate for travel days. Track your days diligently, apply the 80% rule, and claim it on your Schedule C. For employee drivers, the federal deduction is currently suspended, but that may change in 2026. Always consult with a tax professional to ensure you’re maximizing your deductions legally. Start tracking today so you’re ready for tax season.