Tax Deductions For Owner-Operator Truck Drivers

Truck drivers who own and operate their rigs carry more than just freight – they also carry full responsibility for managing their business finances. As an owner-operator, you’re not only in charge of delivering loads safely and on time, but also of handling your own business taxes. Unlike company drivers, you don’t have an employer withholding taxes from your paycheck, which means accurate bookkeeping is essential to keep your business on track and compliant.

One of the most effective ways to reduce your tax burden is by understanding and claiming every eligible deduction available to you. From fuel and maintenance costs to lodging, meals, and office supplies, these deductions directly impact your bottom line by lowering your taxable income. It’s important to keep a detailed record of your expenses throughout the year to ensure that when tax season arrives, you’re prepared to file with confidence. And avoid paying more than necessary.

In this guide, we’ll walk through the most common tax deductions for truck drivers who own and operate their vehicles. 

As you are reading through this article, keep in mind that Riviera Finance is not an accounting or tax advisory firm. The information provided is intended for general guidance and cash flow management insights only. We are sharing some tips we have learned working with transportation, freight and trucking businesses for more than 55 years. All businesses should consult a certified accountant or tax professional for advice specific to their financial and tax obligations.

Let’s look at some important and often overlooked tax deductions that owner-operators for trucking businesses can claim.

Top Tax Deductions for Trucking Businesses

1. Per Diem Deduction

The Per Diem deduction is one of the largest tax deductions applicable to truck drivers and trucking businesses. This allows you to deduct meals and other incidental daily expenses. The daily rate changes over time. The Per Diem rate, effective October 1, 2025 through September 30, 2026, is $80 per full day and $60 per partial day in the Continental United States. Keep in mind that you’re only permitted to take this deduction while traveling a distance that requires you to sleep or rest away from home.

Federal and state tax laws are constantly changing, which makes it important to monitor recent developments. To get accurate per diem rates for every fiscal year based on state, visit the General Services Administration website.

2. Fuel and Other Travel Expenses

Fuel and travel expenses are among the largest and most unpredictable costs for trucking and freight companies. Managing these expenses effectively is essential to maintaining profitability and keeping your trucks on the road. The fuel you purchase while driving, including taxes on fuel, is deductible. You can also deduct other travel-related expenses, such as highway tolls and parking charges that are paid while you are driving for work.

Related: What to Look For When Choosing a Fuel Card

3. Business Supplies

As an owner-operator, you need to purchase a variety of business supplies throughout the year. Many of these can be deducted. There is a limit of $500 per item. In addition to the cost of buying tools and supplies, you can deduct costs for repairing them. This might include items such as tarps, chains, ice scrapers, wide-load flags, and fire extinguishers.

4. Maintenance and Repairs

Expenses related to repairing and maintaining your truck or fleet vehicles are valuable tax deductions that can significantly reduce your overall business costs. This broad category covers any expense tied to keeping your vehicles safe, efficient, and road-ready. This includes routine maintenance, major repairs, or upgrades that extend their lifespan or adapt them for new uses. Deductible expenses may include replacement parts, tires, oil changes, fluids, and tools used for maintenance, as well as labor costs paid to mechanics or service providers. It’s important to track these expenses carefully throughout the year to help you stay compliant, and it ensures you’re maximizing the tax deductions available to your business.

Related: 10 Ways to Increase Profitability of Your Trucking Business

5. Insurance

As an owner-operator, you may be paying for several types of insurance. Business-related insurance expenses are deductible. This includes liability, property damage, cargo, and policies that cover lost income due to interruptions. Health insurance can be deducted on Schedule 1 Form 1040 but not as a business expense.

6. Office Supplies

Office supplies may not seem like a major expense in the trucking industry, but they play an essential role in keeping your business organized and running smoothly. And, they’re fully tax deductible. This category includes everyday items such as paper, pens, notebooks, staplers, envelopes, and printer ink, as well as digital tools like filing software or organizational apps used to manage schedules, invoices, and contracts. Whether you run your business from a home office or on the road, these supplies support the administrative side of your operations. Be sure to keep an accurate record of these purchases throughout the year to ensure you can claim every eligible deduction come tax time.

7. Personal Items and Services

This is a general category that includes many products you buy that are necessary for your business. This includes uniforms, boots, motels, and showers. Keep in mind that you can only include items that are essential for operating your business.

8. Communication and Technology

You can deduct devices that are necessary for your business, which may include your cell phone, CB radio, ELD, internet, and radio. For some items, such as phone and internet service, you can only claim the costs associated with your business.

9. Non-Deductible Expenses

Items that you are not allowed to deduct are anything not directly connected to your business. This might include commuting, traveling for personal reasons, clothing you don’t need for work, personal cell phone and internet use, and any expenses that are reimbursed.

Related: Basic Accounting For Trucking Companies

Tips to Manage Your Finances

The above are general guidelines for identifying truck driver tax deductions. If you aren’t sure, you should always consult an accounting and tax professional. Managing your finances is essential for owner-operators, especially during times when many expenses are on the rise.

One way to improve cash flow for your business is to factor your freight bills or invoices. Factoring allows you to collect payment on freight bills immediately rather than waiting for clients to pay in 60-90 days. 

Get fast, reliable funding from a trusted industry leader. With more than 55 years in business and more than 20,000 satisfied clients, Riviera Finance is one of the nation’s most experienced invoice factoring companies, serving businesses across the U.S. and Canada. Request your free quote today, and one of our financial specialists will contact you the same business day to discuss a custom cash flow solution for your business. 

*This blog was originally published November 2022 and was updated in January 2026

As you are reading through this article, keep in mind that Riviera Finance is not an accounting firm. The information is provided by ATBS, an accounting and tax firm that specializes in the trucking industry. If you’d like more tax & accounting information and advice, please reach out to ATBS. If you mention you learned about them from Riviera Finance you will get a special rate.