Truck Driver Tax Deductions 2025: Complete Guide

For truck drivers, taxes often get complicated fast. Whether you’re an owner-operator or a company driver, knowing what expenses you can legally deduct matters — a lot. In 2025, several deduction rules remain consistent with previous years, but some thresholds and documentation standards have shifted slightly. This guide walks through the deductions truck drivers should be aware of when preparing their 2025 returns, especially those who are self-employed or file as independent contractors.

Standard vs. Itemized: Know Your Filing Route

First, not every driver will benefit from itemizing deductions. Company drivers who receive a W-2 typically cannot deduct job-related expenses, including per diem meals, under current IRS rules. That changed with the Tax Cuts and Jobs Act and is still in effect for 2025 unless updated legislation is passed.

Owner-operators, on the other hand, file Schedule C or through an LLC/S-corp structure. For them, tracking deductible expenses remains critical to reducing taxable income and managing cash flow effectively.

Key Deductions for Owner-Operators

Per Diem Meals (M&IE)
In 2025, truck drivers who travel away from home for work can deduct a portion of their meals and incidental expenses using the per diem method. The rate remains $69 per full day within the continental U.S., with 80% of that amount being deductible. This is different from most industries, which are capped at 50%. For partial days, the deduction is prorated.

Truck Lease or Purchase Payments
If you lease your truck, the lease payment is deductible as a business expense. If you purchased the truck, depreciation applies instead. Section 179 may allow for accelerated depreciation depending on the year and value of the asset.

Fuel and Maintenance
Fuel, oil, tires, repairs, and general maintenance all fall under deductible operational expenses. Receipts and logs should be maintained throughout the year, and using a mileage log or accounting software can reduce end-of-year headaches.

Insurance Premiums
Premiums paid for liability, cargo, bobtail, and even occupational accident insurance are considered deductible expenses. These need to be directly related to the operation of your truck or business.

Tolls and Parking Fees
If you pay tolls or overnight parking while on the road, those costs are deductible, provided they are work-related and not reimbursed by a carrier.

Cell Phones and Data Plans
If your phone or tablet is used for work purposes, such as GPS, communication with dispatch, or load tracking, you can deduct a percentage of the cost tied to business use. A flat 100% deduction is risky unless the device is solely for work.

Licensing, Permits, and Association Fees
This includes DOT fees, drug testing, vehicle registration, and any mandatory regulatory fees tied to operating legally as a trucker.

Training and Continuing Education
Courses, certifications, or training that improve your current skills or meet regulatory requirements may qualify as deductible expenses, provided they are not for a new career.

Accounting or Tax Prep Services
If you pay someone to manage your bookkeeping or file taxes, those fees are deductible as a business expense. This applies even if the service is only used annually.

Home Office Deduction
If you dispatch or manage your work from a home office, and that space is used exclusively for business, a portion of your rent, utilities, and internet may be deductible. This one is often misunderstood, so documentation is key.

What’s Not Deductible

Just because you spend money while on the road doesn’t mean it automatically qualifies as deductible. Personal expenses, commuting mileage to and from your home base (for W-2 drivers), and unreimbursed employee costs are all excluded under current IRS rules for 2025.

Drivers must also avoid attempting to deduct any item for which they have already received reimbursement from a carrier or third party. The IRS requires that expenses be “ordinary and necessary” for the operation of a business, and they cannot be duplicated in both income and deductions.

Record-Keeping in 2025

The IRS has not loosened requirements when it comes to documentation. In fact, digital audit trails have become more important than ever. For every deduction, truckers should keep receipts, logs, and records showing:

  • The nature of the expense

  • The date it was incurred

  • The business purpose

  • The amount

There’s no rule against scanning receipts or using accounting software, as long as the records are accurate and accessible. Apps designed for self-employed truckers can automate much of this, but they still require regular input to stay compliant.

Final Word

For owner-operators, tracking and claiming tax deductions can dramatically reduce what’s owed at the end of the year. In 2025, the IRS continues to allow a broad range of deductible expenses, but only for those who are properly classified and who keep clean, verifiable records. W-2 drivers still face more limited options, but those operating independently can take full advantage of the current tax code — provided they stay organized and up-to-date with their documentation.