How much is your per diem
actually saving you?
Enter days on the road and your tax bracket — see your annual deduction and estimated tax savings using 2025 IRS rates.
This estimate applies to self-employed owner-operators and 1099 contract drivers. W-2 company drivers cannot deduct per diem under current law (post-2018 TCJA).
Run settlements automatically, every pay period.
Alogix calculates driver pay, advances, deductions, and per diem allowances from real load data — no spreadsheets, no manual math.
IRS per diem rules for truck drivers 2025
The IRS standard per diem rate for CONUS (continental US) travel is $80 per day for 2025, up from $69 in prior years. This rate covers meals and incidental expenses (M&IE) while away from your tax home overnight for business. Self-employed truckers can deduct 80% of the standard rate — or 80% of actual documented meal expenses if they exceed the standard rate and have receipts. The 80% limitation (rather than 100%) applies specifically to meal and entertainment costs under IRC §274(n). For Alaska, Hawaii, and certain high-cost CONUS areas, higher locality rates may apply — check IRS Publication 1542 for location-specific rates.
Who qualifies for the trucker per diem deduction?
Owner-operators and independent contractors (1099) who are away from their tax home overnight on business qualify for the per diem deduction on Schedule C. Your "tax home" is generally your principal place of business — the area where you regularly operate, not necessarily where you live. W-2 company drivers lost the ability to deduct unreimbursed employee business expenses, including per diem, under the 2018 Tax Cuts and Jobs Act (TCJA). That provision is currently set to expire after 2025; if it does, W-2 drivers may regain the deduction starting in 2026. Lease-operators who receive a per diem allowance from a motor carrier should verify whether it is structured as a tax-free reimbursement or taxable compensation — the treatment differs.
Per diem vs actual expense method
The per diem method uses the IRS standard rate — no receipts required, just a log of days away from home. It is simple, audit-resistant, and predictable. The actual expense method lets you deduct your real documented meal costs, which may exceed $80/day in high-cost cities, but requires receipts for every meal. For most long-haul drivers who eat on the road daily, the standard rate is sufficient and the time saved versus receipt tracking is significant. The one scenario where actual expenses win: drivers working primarily in cities like New York, San Francisco, or Chicago where daily meal costs routinely exceed the standard rate. In those lanes, tracking actuals for even a quarter can reveal whether the extra record-keeping pays off.