The average owner-operator earns $150,000–$250,000 in gross revenue but pays taxes on far less — if they're doing it right. The IRS allows truckers to deduct most legitimate business expenses, and the list is longer than most drivers realize. Here's what you can actually write off.
*Note: This is general information, not tax advice — consult a CPA who specializes in trucking for your specific situation.*
Per Diem Deductions
The per diem deduction is one of the most valuable write-offs available to long-haul drivers. The IRS allows truckers who are away from home overnight for work to deduct a set daily amount for meals and incidental expenses.
2025 rate: $80 per day away from home (80% deductible, so effectively $64/day).
A driver who's on the road 250 days a year can deduct $20,000 in per diem. That's real money. Keep a log — your ELD records can support this.
Fuel Costs
Fuel is typically the largest deductible expense for owner-operators. Every gallon you buy for the truck is deductible as a business expense. This includes:
- Highway diesel
- Reefer fuel (if applicable)
- DEF (diesel exhaust fluid)
Keep every receipt or use a fuel card that generates reports — makes tax time significantly easier and protects you in an audit.
Truck Payments and Lease Costs
If you own your truck outright, you can deduct depreciation (Section 179 allows immediate write-off up to the full cost in many cases). If you're financing, the interest portion of your payments is deductible — not the principal. If you're leasing, the full lease payment is typically deductible as a business expense.
Work with your CPA on the best depreciation strategy for your situation — Section 179 vs. bonus depreciation can significantly change your tax picture.
Maintenance and Repairs
All maintenance and repair costs are deductible:
- Tires (major expense — don't miss this)
- Oil changes, filters, lube
- Brake work
- Engine and transmission repairs
- Body work related to business use
- Tools and shop supplies
Keep receipts. If you do your own wrenching, you can still deduct the parts.
Insurance Premiums
Business insurance premiums are fully deductible:
- Primary liability insurance
- Physical damage / cargo insurance
- Bobtail / non-trucking liability
- Occupational accident insurance
- Health insurance (self-employed deduction — this one goes on Schedule 1, not Schedule C)
Licensing, Permits, and Fees
The cost of staying legal is deductible:
- CDL renewal fees
- IFTA/IRP registration
- DOT/MC authority fees
- State apportioned license fees
- Hazmat endorsements
- Weigh station bypass subscriptions (PrePass, etc.)
Cell Phone (Partial Deduction)
Your cell phone is deductible to the extent you use it for business. Most truckers use their phone heavily for business — load boards, navigation, broker calls, ELD connectivity. Track your usage and deduct the business percentage. A second phone used exclusively for business is 100% deductible.
Home Office
If you use a dedicated space in your home exclusively and regularly for your trucking business (dispatching yourself, bookkeeping, paperwork), you may qualify for the home office deduction. This is complex and easy to get wrong — ask your CPA.
Health Insurance (Self-Employed)
If you paid for health insurance for yourself and your family and weren't eligible for coverage through a spouse's employer, you can deduct 100% of premiums as an adjustment to income. This is one of the most missed deductions by new owner-operators.
Other Common Deductions
- Log books, manifests, and forms
- CB radio and accessories
- Truck stop shower fees (if documenting away-from-home trips)
- Tolls (if not reimbursed separately)
- Load securement equipment (straps, chains, binders)
- Accounting and bookkeeping fees
- Tax preparation fees
Track Everything
The difference between owner-operators who pay 25% tax and those who pay 10% is almost entirely record-keeping. Every deductible dollar you miss is a dollar you pay in taxes unnecessarily.
Track every deductible mile and expense with our Owner-Operator Tax Tracker ($15 — instant download). Formatted for Schedule C, covers all major categories, built for truckers. Get the Tax Tracker →