Truck Driver Tax Deductions for 2026 (With Worked Example)

What truck driver tax deductions can owner-operators take?

A self-employed owner-operator can deduct the ordinary and necessary costs of running the truck on Schedule C (Form 1040). The IRS defines an ordinary expense as one that's common and accepted in your field, and a necessary one as helpful and appropriate for the business (Publication 334).

This page is for owner-operators filing Schedule C as sole proprietors. Company drivers paid on a W-2 are covered near the end. Publication 535, the old business expense guide, was discontinued after 2022; the IRS now points to Publication 334 for most of what it covered.

Your preparer may group some of these differently. What matters is that each cost is deducted once.

Truck driver per diem deduction: $80 a day at 80%

The per diem deduction is a flat daily amount for meals and incidental expenses (M&IE) while you're away from your tax home overnight. For 2026, the IRS transportation industry rate is $80 a day in the continental US (CONUS) and $86 outside it.

The rules that turn the rate into a deduction:

• Who qualifies. Your work directly involves moving goods by truck, and it regularly takes you away from home to areas with different federal meal rates (Publication 463). If you use the special rate for one trip, you use it for all trips that year.
• Partial days. The day you leave and the day you return count at 3/4 of the rate (Rev. Proc. 2019-48, section 6.04).
• The 80% limit. Meals are normally 50% deductible. Interstate truck operators under DOT hours of service rules deduct 80% (Publication 463; Schedule C instructions, line 24b).
• A tax home. You need one to be "away" from it. Publication 463 says a person with no regular place of business and no place they regularly live is an itinerant, and can't deduct travel expenses.

Per diem covers meals and incidentals only. There's no standard amount for lodging; if you pay for a motel, you deduct the actual cost. The per diem guide covers trips that cross October 1, and the per diem calculator does the math from your dates.

Fuel, maintenance, tires and insurance

These are usually the biggest deductions. The Schedule C instructions put the business share of fuel, oil, repairs, insurance and license plates on line 9 when you deduct actual vehicle expenses.

• Fuel. Taxes you pay at the pump are part of the fuel's cost. Publication 334 says not to deduct them as a separate item.
• Repairs and maintenance. Deduct repairs that don't add to the truck's value or noticeably extend its life. Costs to restore or replace property must be capitalized and depreciated instead (Schedule C instructions, line 21).
• Insurance. Business insurance premiums are deductible (line 15). If you prepay a policy that runs into next year, Publication 334 says deduct only the part for this year.

Depreciation and section 179 for your truck

You recover the cost of a truck you buy through depreciation, not as one expense in the year you pay. Publication 946 puts tractor units for over-the-road use in the 3-year property class. Other trucks are 5-year property.

Two options can speed that up, per Publication 946:

• Section 179. You can elect to expense qualifying property up front. For tax years beginning in 2026, the limit is $2,560,000, reduced by the amount your section 179 property placed in service that year costs over $4,090,000. The deduction also can't exceed your business income.
• Special depreciation allowance. For qualified property acquired and placed in service after January 19, 2025, the allowance is 100% unless you elect out.

A truck loan payment isn't a deduction by itself. The interest part is deductible; the principal isn't, because depreciation already recovers the truck's cost. If you lease the truck instead, the lease payment goes on line 20a. The profit and loss guide shows how to split a payment.

Form 2290, IFTA, licenses, phone and ELD

• Form 2290 (HVUT). The heavy vehicle use tax applies to trucks with a taxable gross weight of 55,000 pounds or more. For July 1, 2026 to June 30, 2027, it's $550 a year for a truck over 75,000 pounds (Instructions for Form 2290). The Schedule C instructions list the federal highway use tax as a deductible tax on line 23. Price yours with the 2290 calculator.
• IFTA. IFTA (the International Fuel Tax Agreement) settles fuel tax between states each quarter. Fuel taxes count as part of the fuel's cost, so don't deduct them twice. A state fuel tax refund you receive is income on line 6. Ask your preparer how to book net IFTA payments. The IFTA calculator figures the return.
• Licenses and permits. Yearly licenses and regulatory fees paid to state or local governments go on line 23.
• Phone and ELD. Deduct the business share of your phone. If you use a home landline, the base rate of the first line isn't deductible (line 25 instructions). An ELD subscription you use for the business is an ordinary and necessary cost.

Self-employment tax deduction and QBI

Two more deductions come after Schedule C, on your Form 1040.

• Half of self-employment (SE) tax. SE tax is 12.4% Social Security (on up to $184,500 for 2026) plus 2.9% Medicare, figured on 92.35% of net profit. You deduct half of it on Schedule 1, line 15 (Form 1040-ES 2026 worksheet; Schedule C instructions).
• Qualified business income (QBI). You can deduct up to 20% of qualified business income, limited to 20% of taxable income before the deduction (Instructions for Form 8995). For 2026, this simple version works at or under $201,750 of taxable income ($403,500 married filing jointly), per Rev. Proc. 2025-32. Starting in 2026, there's also a $400 minimum deduction if you have at least $1,000 of QBI.

Worked example: a 2026 Schedule C

Example (made-up numbers to show the method). A single owner-operator with her own truck grosses $210,000 in 2026.

Profit before meals: $210,000 − $132,000 = $78,000.

Per diem. She was out 210 full days and 46 partial days, all in the lower 48. The rate is $80 all of 2026.

• Full days: 210 × $80 = $16,800
• Partial days: 46 × $80 × 3/4 = $2,760
• Per diem: $19,560; deduction at 80% = $15,648

Net profit: $78,000 − $15,648 = $62,352.

Self-employment tax.

• $62,352 × 92.35% = $57,582.07
• Social Security: × 12.4% = $7,140.18
• Medicare: × 2.9% = $1,669.88
• SE tax: $8,810.06; half, $4,405.03, is deductible

Income tax.

• $62,352 − $4,405.03 − $16,100 standard deduction = $41,846.97
• QBI: 20% of $57,946.97 is $11,589.39, but 20% of taxable income is $8,369.39, so the deduction is $8,369.39
• Taxable income: $33,477.58
• Tax: $1,240 on the first $12,400, plus 12% of $21,077.58 = $3,769.31

Total federal tax: $3,769.31 + $8,810.06 = $12,579.37. Without the per diem deduction, the same math on $78,000 gives $16,186.44. The per diem saved her $3,607.07, because it cut both SE tax and income tax.

Run your own numbers in the owner-operator tax calculator, and see the quarterly taxes guide for when to pay.

Can company truck drivers deduct expenses?

Generally, no. IRS Publication 463 (2025) says unreimbursed employee travel expenses can't be claimed as a miscellaneous itemized deduction, because those deductions are suspended under section 67(a). Only Armed Forces reservists, qualified performing artists, fee-basis state or local officials, and employees with impairment-related work expenses can use Form 2106.

Whether you're an employee or self-employed depends on the whole relationship. The IRS looks at behavioral control, financial control, and the type of relationship. If you're both a W-2 driver and self-employed, keep separate records for each (Publication 463). New to running your own truck? Start with what an owner-operator is.

What records to keep

Keep records that prove every deduction until the period of limitations for that return runs out. For most returns, that's 3 years after you file. Keep records for a truck until the period of limitations ends for the year you sell or dispose of it, since you need them for depreciation and gain or loss (IRS, How long should I keep records?).

Per diem replaces records of what each meal cost, but Publication 463 says you must still keep records that prove the time, place and business purpose of your travel. Your ELD logs, trip sheets, fuel receipts, rate confirmations and settlements usually cover it. The trip sheet generator keeps miles and fuel by state for IFTA at the same time.