Calculate your 2024/2025 per diem tax deduction for meals & incidentals
A full per diem day is any 24-hour period you're away from your tax home. Partial days (departure and return days) are calculated at 75% of the full rate.
Your "tax home" is your regular place of business, not necessarily where your family lives. If you have no regular place of business, your home may be your tax home.
Transportation workers can deduct 80% of per diem (vs. 50% for most professions) due to DOT hours of service regulations limiting meal timing.
Owner-operator away 250 full days in the US with 50 departure days and 50 return days: Full day amount = 250 × $69 = $17,250. Partial day amount = 100 × $51.75 = $5,175. Gross per diem = $22,425. Deductible amount (80%) = $17,940. Estimated tax savings at 25% bracket = ~$4,485.
Per diem is a daily allowance for meals and incidental expenses when you are away from your tax home overnight for work. For truck drivers, this is a significant tax deduction that can save thousands annually.
The IRS per diem rate for transportation workers is $69 per day within the continental US (CONUS) and $74 per day outside the continental US (OCONUS). Transportation workers can deduct 80% of per diem, compared to 50% for most other professions.
Yes, owner-operators can claim per diem as a business expense on Schedule C. Company drivers cannot deduct per diem on personal taxes (2018-2025 under the Tax Cuts and Jobs Act), but some employers offer per diem as a non-taxable reimbursement.