Long-haul and local truck drivers who own their rig or lease it as an owner-operator face some of the highest deductible expenses of any profession, simply because running a truck is expensive. Even company drivers who receive a W-2 have a narrower but still meaningful set of deductions available. Here’s what applies in 2025.
Owner-Operators vs. Company Drivers
If you own or lease your truck and contract your services, you’re self-employed and file Schedule C, giving you access to the full range of business deductions below. Company drivers who receive a W-2 generally can’t deduct unreimbursed job expenses under current federal rules, making the owner-operator distinction critical.
Truck Payments, Depreciation, and Lease Costs
Loan interest, lease payments, and depreciation on the truck itself are deductible for owner-operators, along with depreciation on trailers and other equipment used in the business.
Fuel, Maintenance, and Repairs
Diesel fuel, oil changes, tires, and repairs are all deductible operating expenses. Keep detailed fuel receipts, since fuel is typically the single largest cost of running a truck.
Per Diem for Meals on the Road
Instead of tracking every meal receipt, truck drivers subject to Department of Transportation hours-of-service rules can use the special transportation industry per diem rate, deducting a flat daily amount for meals while away from home overnight, subject to the 80% deduction limit for DOT workers.
Lodging and Truck Stop Expenses
Hotel stays, showers at truck stops, and parking fees while on the road are deductible business expenses for owner-operators.
Licensing, Permits, and Insurance
CDL renewal fees, DOT medical exam costs, IFTA fuel tax permits, and commercial truck insurance premiums are all deductible.
Communication and Logging Equipment
CB radios, GPS units, ELD (electronic logging device) subscriptions, and the business-use percentage of a cell phone plan are deductible tools of the trade.
Association Dues and Training
Trucking association membership dues, continuing education, and safety training courses required to maintain your CDL are deductible.
What Company Drivers Can Still Deduct
Company drivers generally cannot deduct unreimbursed job expenses on their federal return under current law, though a small number of states still allow these deductions, so check your state’s rules separately.
Keeping Your Trucking Income Organized
Owner-operators in particular benefit from routing settlement checks and per-load pay into an account kept separate from personal spending, so fuel and maintenance costs don’t get mixed up with take-home pay. Some drivers use a fee-free banking app like Chime for this, since it can make direct deposits available early and has no monthly account fees. (Referral link — I may receive a reward if you open an account.)
Frequently Asked Questions
Can I deduct my per diem and actual meal receipts? No — choose either the standard per diem rate or actual meal expenses, not both, for the same trip.
Do I need a logbook to prove business mileage? Yes, especially since ELD data and DOT logs already provide much of this documentation, making it easier to substantiate deductions if audited.
What if I lease my truck to a carrier but pay my own expenses? You’re likely still considered self-employed for expenses you pay yourself, so keep those costs separate from anything the carrier reimburses.
A tax professional familiar with owner-operator trucking can help you apply the per diem rules correctly and determine whether incorporating as an LLC or S-corp makes sense at your income level.