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
Transportation workers subject to DOT hours-of-service regulations get the special M&IE (meals and incidental expenses) per diem rate set annually by the IRS in Notice form. For 2024-2025 (Notice 2024-68), the special transportation industry rate is $69/day for travel within CONUS and $74/day outside CONUS. The deduction sits inside IRC §274(n) — under §274(n)(3), DOT-regulated workers deduct 80% of M&IE, while non-DOT travelers deduct only 50%. The Tax Cuts and Jobs Act of 2017 (PL 115-97) eliminated the §67(b) miscellaneous itemized deduction for unreimbursed employee expenses through 2025, so W-2 company drivers cannot deduct per diem on their personal returns. Only owner-operators filing Schedule C, statutory employees, and certain self-employed contractors can claim it.
The Formula
Deductible Amount = Annual Per Diem x 80% (IRC §274(n)(3))
Federal Income Tax Savings = Deductible Amount x Marginal Bracket
SE Tax Savings = Deductible Amount x 15.3% (Schedule SE filers only)
Variables
- Days Away — Days when the driver is away from tax home long enough to require sleep or rest per Rev. Rul. 75-432
- Daily Rate — IRS special transportation rate per Notice 2024-68: $69 CONUS, $74 OCONUS for tax years beginning in 2024
- 80% — IRC §274(n)(3) — DOT hours-of-service workers deduct 80% of M&IE versus 50% standard
- 75% — Rev. Proc. 2019-48 §6.04 — partial days (first day departing, last day returning) prorate to 75% of full rate
- 15.3% — SE tax rate (IRC §1401) — applies to net Schedule C earnings, so per diem reduces SE tax base
Worked Example
OTR owner-operator runs January-December: 248 full days on the road plus 30 partial days (15 departures, 15 returns). Full-day per diem: 248 x $69 = $17,112. Partial-day per diem: 30 x $69 x 75% = $1,553. Total annual M&IE: $18,665. Deductible at 80%: $14,932. Driver in 22% federal bracket: federal income tax savings $3,285. SE tax base reduction saves $14,932 x 15.3% x 92.35% = $2,110. Total federal tax savings: $5,395. State income tax adds another $600-$1,100 in most states. The per diem cuts taxable income by nearly $15k without spending an extra dollar.
Practical Tips
- Logbook discipline matters. ELD records (49 CFR §395.20+) timestamp every duty status change and serve as primary evidence of "away from tax home" days. IRS Pub 463 §5 calls these "adequate records" — combine with settlement sheets showing route origins and destinations.
- Partial-day proration per Rev. Proc. 2019-48 §6.04: the day you leave home and the day you return each count at 75% of the full daily rate, not the full $69. A 250-day OTR year typically breaks down as ~225 full days plus ~50 partial days for total deduction smaller than 250 x $69.
- Tax home is the regular place of business per Treas. Reg. §1.162-2 — usually your terminal city, not necessarily your residence. A driver living in Phoenix but dispatched out of Dallas has Dallas as tax home; days in Dallas do not qualify even if sleeping in the truck.
- Sleeping in your truck still counts as a day away from home if the trip required rest in a status away from tax home (Williams v. Commissioner, T.C. Memo 1990-126). The "incidentals" portion of M&IE specifically covers tips and minor expenses, not lodging — the IRS does not allow a lodging per diem for OTR drivers because the truck sleeper is treated as the lodging.
- Carrier per diem programs (W-2 driver receives portion of pay tax-free) are non-accountable plans under IRC §62(c). The carrier reduces Box 1 wages by the per diem amount, which lowers FICA and Medicare withholding for both parties. The trade-off: lower reported wages can reduce Social Security benefits, mortgage qualification income, and 401(k) contribution base.
- GSA per diem rates (gsa.gov/perdiem) apply to government travelers and most non-trucking business travel. Trucking-specific rate from IRS Notice updates is higher than GSA M&IE in many cities — always use the IRS special transportation rate, not GSA, for OTR drivers.
Frequently Asked Questions
What is the current per diem rate for truck drivers?
IRS Notice 2024-68 sets the special transportation industry M&IE rate at $69/day within CONUS and $74/day outside CONUS for fiscal year 2025 (October 1, 2024 to September 30, 2025). The rate is unchanged from FY 2024. Confirm annually since the IRS updates each fall.
Can company drivers claim per diem on their taxes?
Not on personal Form 1040 for tax years 2018-2025. TCJA suspended unreimbursed employee expenses under former IRC §67(b)(11) through 12/31/2025. The provision is scheduled to sunset, restoring the deduction for 2026 unless Congress acts. Many carriers run an accountable per diem pay program (separate untaxed component on the paycheck) to give drivers the equivalent benefit during the suspension.
What qualifies as a day away from home for per diem?
Per Rev. Rul. 75-432 and IRS Pub 463: the trip must require sleep or rest to meet driving demands, and you must be away from your tax home. Same-day return trips with no overnight rest do not qualify. The day must include a substantial period during which you are away from tax home — IRS does not require 24 hours, just enough to need sleep.
Does claiming per diem reduce Social Security benefits?
Yes, modestly. SE tax under IRC §1401 funds Social Security and Medicare based on net Schedule C earnings. Per diem reduces that net earnings figure, which reduces SS-credited earnings used in the AIME (average indexed monthly earnings) calculation. For an OO claiming $15k/year per diem over 30 years, the lifetime SS benefit reduction is typically $50-$120/month — usually a worthwhile trade-off versus current tax savings.
Do I need to keep meal receipts to claim per diem?
No. The per diem method (IRS Pub 463 §5, Rev. Proc. 2019-48) is an alternative to actual expense tracking. You document the location and days away (ELD logs, settlement sheets) but do not need meal receipts. The actual expense method is also available — track every meal receipt, deduct 80% of total — but most OTR drivers benefit more from per diem because they spend less than $69/day on food.
Can I deduct per diem if I sleep in my truck?
Yes. The per diem covers M&IE only — meals and incidentals like tips, laundry, and small personal expenses. It does not include lodging. The IRS treats the truck sleeper as the lodging arrangement, so OTR drivers cannot claim a separate lodging per diem but the M&IE per diem stays valid regardless of where you sleep, as long as you were away from tax home overnight.
How does per diem interact with state income tax?
Most states that have income tax follow the federal Schedule C bottom line and accept the per diem deduction by reference. A handful of states (NJ, PA, AL) have different rules requiring add-back of certain federal deductions. California conforms to federal §274 with modifications. Check your state Department of Revenue; the additional state savings typically run $400-$1,200/year on a $15k per diem deduction.