Per Diem Calculator
Calculate your annual per diem deduction and tax savings as an over-the-road truck driver based on days away from home.
Results
Visualization
How It Works
The IRS allows transportation workers who travel away from home overnight to deduct a per diem allowance for meals and incidental expenses. For truck drivers, this is one of the most valuable tax deductions available. Owner-operators can claim it directly on Schedule C, while company drivers who receive per diem as part of their pay receive it tax-free but at a lower reported wage.
The Formula
Deductible Amount = Annual Per Diem x 80%
Federal Savings = Deductible Amount x Tax Bracket
SE Tax Savings = Deductible Amount x 15.3%
Variables
- Days — Number of days away from your tax home overnight
- Rate — IRS per diem rate for transportation workers ($69/day for 2025)
- 80% — Percentage of meal expenses deductible for transportation workers
- 15.3% — Self-employment tax rate (applies to owner-operators only)
Worked Example
An OTR driver spends 250 days on the road. At $69/day, annual per diem is $17,250. The 80% deductible amount is $13,800. In the 22% tax bracket, federal savings are $3,036. SE tax savings add $2,111. Total annual savings: $5,147, or about $429/month.
Practical Tips
- Keep a detailed logbook of days away from your tax home. ELD records and settlement statements help verify your days.
- Partial days (departure and return days) count at 75% of the full per diem rate.
- Owner-operators deduct per diem on Schedule C. Company drivers may receive it as non-taxable pay through their carrier.
- The per diem rate is updated annually by the IRS. Check IRS Publication 463 each year for the current rate.
- Per diem can reduce your Social Security earnings record. Consider whether the tax savings outweigh lower future benefits.
Frequently Asked Questions
What is the current per diem rate for truck drivers?
For 2025, the IRS per diem rate for transportation workers is $69 per day within the continental US and $74 per day outside CONUS.
Can company drivers claim per diem?
Company drivers cannot deduct per diem on their taxes since the 2018 tax reform eliminated unreimbursed employee expenses. However, many carriers offer per diem pay programs that provide the benefit tax-free.
What qualifies as a day away from home?
Any day you are away from your tax home (the city where your business is based) overnight and incur meal expenses while on the road.
Does per diem affect my Social Security?
Yes. Reducing taxable income with per diem also reduces your Social Security earnings, which could slightly lower future Social Security benefits.
Do I need to keep meal receipts?
No. The per diem method is an alternative to tracking actual meal receipts. You just need to document your days away from home.