Tax season hits differently when you're OTR. You're not sitting at a desk nine to five — you're burning miles, sleeping in your cab, and spending money every single day just to do your job. The IRS actually recognizes most of that. The problem is, a lot of CDL-A drivers leave serious money on the table every year because they don't know what they can claim.
Here's a breakdown of the deductions that matter most for OTR drivers in 2026 — and how to make sure you're actually capturing them.
1. Per Diem — Your Biggest Deduction
This is the one that makes the biggest difference for most OTR drivers, and it's also the one most misunderstood.
Per diem is a daily IRS-approved rate for meals and incidental expenses when you're working away from your tax home overnight. You don't need receipts for every meal. You use the standard rate.
For 2026, the IRS per diem rate for transportation industry workers remains $80 per day for travel within the continental U.S. and $86 per day for travel outside it — and per diems are now 80% deductible. CliftonLarsonAllen That works out to $64 per qualifying day inside the U.S.
If you're OTR 250 days a year, that's $16,000 in deductions from per diem alone.
Important note: as a result of the Tax Cuts and Jobs Act, W-2 company drivers are no longer eligible to claim per diem on their personal return. This deduction is available to owner-operators and independent contractors (1099) only. ATBS If you're a company driver, your employer may offer a per diem pay structure instead — ask about it.
To qualify, you must be traveling far enough from your tax home that you can't reasonably return the same day, and you must be away long enough to require sleep or rest. Truckstop For most OTR drivers, nearly every working day qualifies.
Keep your ELD records. ELD data already captures duty status, rest breaks, and overnight stays, and the IRS accepts this as documentation — just back it up and keep records for at least three years from the date you file. Truckstop
2. Truck and Equipment Depreciation
Your truck is your biggest asset — and the IRS gives you multiple ways to recover its cost.
Section 179 may allow you to expense the full purchase price of qualifying equipment in the year you placed it in service, up to $1,250,000 for 2025. Bonus depreciation allows accelerated first-year write-offs on qualifying assets as well. Americantruckersllc If you bought a truck this past year, talk to your CPA before filing — the savings can be substantial.
If you didn't elect either accelerated method, you'll depreciate the truck over its useful life. Class 8 trucks typically follow a 3–5 year MACRS depreciation schedule. Americantruckersllc
Also deductible: loan interest if you financed your truck. Truckers must deduct actual costs rather than using a standard mileage rate. Porter Freight Funding
3. Maintenance and Repairs
Everything it costs to keep your truck roadworthy is deductible. Because trucks are non-personal-use vehicles, you can deduct all costs to maintain and repair your truck — including washing, tires, and any other upkeep. Porter Freight Funding
Keep every receipt. Oil changes, brake jobs, new tires, DEF fluid, alignments — it adds up fast and every dollar is deductible.
4. Fuel
Fuel is typically your largest operating expense and fully deductible as a business cost. If you use a fuel card, most of them generate year-end expense reports that make this easy to document. If you're paying out of pocket, keep your receipts organized by month.
5. Lodging
When you're off the road and need a hotel — that's deductible too. You can claim hotel costs when delivery takes more than a day. Unlike meals, there is no per diem rate for lodging, so you must keep your actual receipts. Porter Freight Funding
6. Tolls and Scales
Every toll you paid for business purposes is deductible. Same goes for weigh station fees and any other road-related costs incurred while hauling. These are small individually but can add up to hundreds over the course of a year.
7. Phone and Data Plan
Phone and data plans used for business qualify as deductions. If you use the phone for both personal and business use, calculate the percentage used for work and deduct accordingly. Truckstop Most OTR drivers are using their phone heavily for navigation, load boards, and carrier communication — a strong case can usually be made for 70–80% business use.
8. Licensing and Certifications
You can deduct the cost of maintaining your CDL, business license fees, and any other essential licensure required to operate your business. Porter Freight Funding If you paid for a medical card renewal, DOT physical, or any required certification, keep the receipt.
9. Load Board and Software Subscriptions
Apps and software subscriptions you use for business — load boards, TMS platforms, dispatch tools — are fully deductible. Truckstop If you're paying monthly for DAT, Truckstop, or any similar service, that's a write-off.
10. Self-Employment Tax Deduction
This one is easy to miss because it doesn't show up on Schedule C. You can deduct half of your self-employment tax on your 1040. For most owner-operators, this is worth $5,000–$10,000 or more. Americantruckersllc
11. Retirement Contributions
A SEP-IRA lets you shelter up to 25% of your net profit from taxes. If you're netting $100,000, that's up to $25,000 in tax-free contributions. Americantruckersllc This is one of the most underutilized tools for owner-operators who want to reduce their tax bill while building long-term wealth.
12. Home Office
If you have a dedicated space at home used exclusively for dispatch coordination, invoicing, or load planning, you may qualify to deduct a portion of your home expenses — utilities, rent, and internet — based on the size of the dedicated workspace relative to your total square footage. Truckstop
Don't Leave Money Behind
The average owner-operator overpays by thousands every year — not because the deductions don't exist, but because they don't track expenses consistently throughout the year. A simple spreadsheet or a trucking-specific expense app used weekly will save you more than any last-minute tax scramble in April.
And if you're not sure whether a deduction applies to your situation, a CPA who specializes in trucking is worth every dollar. The tax code has real benefits built in for OTR drivers — you just have to claim them.
OTR Express Group connects CDL-A OTR drivers with top-paying carriers across the U.S. If you're looking for consistent miles and a carrier that treats you right, reach out today.
