Truck Driver Per Diem 2026: IRS Keeps $80 Daily Rate
By iAgency
Good news for drivers who spend nights on the road: the IRS kept the special per diem rate for the transportation industry at $80 a day for travel inside the continental United States. The new rates took effect on October 1, 2026, and run through September 30, 2027. For owner-operators and small fleets, per diem is one of the simplest ways to cut the tax bill on money you already spend on the road. Here is what changed, what did not, and how to use it well.
Key takeaways
$80 a day, unchanged. The transportation industry meal and incidental rate stays at $80 per day for travel in the continental U.S. and $86 per day outside it, under IRS Notice 2026-60.
80% deductible for drivers under hours of service. If you are subject to DOT hours-of-service limits, you can deduct 80% of business meal costs, not the usual 50%.
Records still matter. The flat rate replaces meal receipts, but you still need proof of the time, place and business purpose of each trip.
Year-end choice. For October through December 2026, many taxpayers can keep last year's rates or switch to the new ones, but they must be consistent.
What the IRS announced
Each fall, the IRS publishes special per diem rates for business travel. The 2026-2027 rates came out in Notice 2026-60 in late September. For the transportation industry, the meal and incidental expense rate is $80 for any locality in the continental U.S. and $86 for travel outside it. The incidental-expenses-only rate stays at $5 per day.
The broader "high-low" rates that many companies use for lodging and meals went up slightly. The high-cost area rate rose from $319 to $329, and the rate for all other areas rose from $225 to $230.
Fuel ranked as the top concern in this year's industry survey, as we covered in Top Trucking Issues 2026. Per diem will not lower diesel prices, but it can keep more of your earnings in your business.
Who can use the transportation rate
According to IRS Publication 463, you are in the transportation industry if your work directly involves moving people or goods by truck, bus, train, ship, barge or airplane, and it regularly requires travel away from home to places with different meal rates. Most over-the-road and regional truck drivers fit that description.
Owner-operators. The IRS says you can use the standard meal allowance whether you are an employee or self-employed. Self-employed drivers usually claim it on their business return.
Company drivers. Many carriers pay per diem as part of the pay plan. If you drive for a fleet, ask your employer how its plan works.
Local drivers. If you are home every night, you are usually not traveling away from home for tax purposes, so per diem generally does not apply.
How the math works
Here is a simple example using the new rate. Say an owner-operator spends 200 full days away from home in a year. At $80 a day, the standard meal allowance is $16,000. Because the driver is subject to hours-of-service limits, 80% of that, or $12,800, may be deductible.
Partial days count too. Under one method the IRS allows, you can claim three-fourths of the daily rate on the day you leave and the day you return. At $80, that is $60 for each of those days. Your actual result depends on your own records and tax situation.
Five ways to get per diem right
Keep a simple trip log. Write down the date you left, the date you returned, where you went and the load or customer.
Pick one method and stick with it. Use the same rate method for the whole year. If you used the transportation rate in the first nine months of 2026, plan to keep it through December 31.
Do not double-dip. If you claim the flat meal rate, do not also deduct the receipts for those same meals.
Bring your accountant in early. Per diem works best when it is part of a full plan with fuel, maintenance and insurance costs.
Keep your other costs in view. Insurance is one of your biggest fixed costs. Our owner-operator insurance page explains the coverages most independent drivers need.
What it means for fleets and partners
Small fleets that pay drivers per diem should review their pay plans before the new year. A clear, written plan that follows the IRS rules helps drivers trust their checks and helps the business at tax time.
Accountants, dispatchers and factoring partners who work with owner-operators can share this update with clients now, before year-end planning. A driver who understands per diem often has better cash flow, and better cash flow makes it easier to pay for the right commercial truck insurance on time.
Want to free up more cash for the year ahead? Start an online quote and we will review your coverage and options with you.
Frequently asked questions
What is the truck driver per diem rate for 2026-2027?
The IRS special rate for the transportation industry is $80 per day for travel in the continental U.S. and $86 per day for travel outside it, for expenses paid or incurred on or after October 1, 2026.
How much of per diem can truck drivers deduct?
Drivers subject to DOT hours-of-service limits can deduct 80% of business meal costs, according to IRS Publication 463. Most other business travelers are limited to 50%.
Do I need receipts if I use per diem?
You do not need meal receipts when you use the standard meal allowance. You still need records that show the time, place and business purpose of your travel.
Can company drivers claim per diem on their own?
Company drivers are usually paid per diem through their employer's plan. Rules for employees differ, so ask your employer and a tax professional about your situation.
About iAgency
iAgency is a commercial trucking insurance agency for owner-operators, small fleets and the partners who support them, including dispatchers, factoring companies and accountants.
Call or text 469-501-1071, email coi@iagency.biz for certificates, or get an online quote.
Source: FreightWaves, Per diem: one approach is stable, other is higher (Sept. 27, 2026). Rates confirmed in IRS, Notice 2026-60, and rules from IRS, Publication 463.
Photo: Taylor on Unsplash.
Tax rules can change and every situation is different, so talk to a tax professional before you file.
This article is general information, not coverage or legal advice. Coverage depends on your policy terms.