IRS Per Diem Rates for Truck Drivers in 2026: What Fleet Managers Need to Know

Every year, the IRS updates the per diem rates that fleet managers and carriers use to structure driver compensation programs. For 2026, the IRS per diem rates for truck drivers remain one of the most valuable — and most frequently misapplied — tools in fleet compensation. Getting the rates right matters, but getting the program structure right matters more. This guide covers the current 2025 rates, how the special transportation industry method works, partial-day calculations, and the most common errors that draw IRS scrutiny.

Table of Contents

• IRS Per Diem Rates for Truck Drivers in 2026
• The Special Transportation Industry Rate Explained
• The High-Low Substantiation Method
• Partial-Day Calculations
• Accountable Plan Requirements
• Common Errors That Trigger IRS Scrutiny
• Per Diem for Owner-Operators

IRS Per Diem Rates for Truck Drivers in 2026

For tax year 2026, the IRS special transportation industry per diem rate is $80 per day for travel within the continental United States (CONUS). This rate applies to drivers who qualify under the Department of Transportation (DOT) hours-of-service rules — primarily long-haul truck drivers who are subject to federal HOS regulations.

For travel outside the continental United States (OCONUS) — including Alaska, Hawaii, and international locations — rates are set by the State Department and updated monthly. Most domestic fleet operations use only the CONUS rate.

The IRS per diem rates for truck drivers are published annually in IRS Revenue Procedure guidance and apply to the period from October 1 of the prior year through September 30 of the current year (following the federal fiscal year cycle). Fleets and owner-operators should confirm the current-year rate at IRS.gov or through a qualified tax advisor.

The Special Transportation Industry Rate Explained

Most industries use the standard per diem rates published by GSA, which vary by location (the “high-low” method). The transportation industry gets a different treatment: a single flat rate that applies regardless of where the driver travels. This is the special transportation industry rate, and it significantly simplifies record-keeping for fleet operators.

To qualify for the special transportation rate, the driver must be:

• Subject to DOT hours-of-service limitations
• Away from home during a rest period required under federal HOS regulations
• Working as a driver — not a local driver whose route doesn’t require overnight stays

Local drivers and short-haul drivers who return home each day do not qualify for per diem. This distinction is important for fleets with mixed driver types — a blanket per diem policy applied to all drivers will fail IRS scrutiny if local drivers are included.

The High-Low Substantiation Method

While transportation industry drivers use the flat special rate, fleets should understand the high-low method because it applies to non-transportation employees and is sometimes incorrectly applied to drivers. Under the high-low method:

• A higher per diem rate applies in designated “high-cost” localities (major cities, resort areas)
• A lower rate applies everywhere else
• The employer must track where the employee traveled to apply the correct rate

For truck drivers subject to HOS rules, this complexity is eliminated by the special transportation rate. The flat $80 rate applies regardless of whether the driver overnighted in New York City or rural Nebraska.

Partial-Day Calculations

Partial travel days — the first and last day of a trip — are one of the most frequently miscalculated elements of any per diem program. IRS rules allow only 75% of the daily per diem rate for partial travel days. For 2025, that means:

• Full travel day: $80.00
• Partial travel day (first/last day): $60.00

Some employers pay a flat daily rate without accounting for partial days, which creates an overpayment relative to the IRS-approved rate. Overpayments above the IRS rate must be treated as wages, subject to payroll tax — which defeats much of the benefit of the per diem structure. Make sure your payroll system correctly applies the 75% rule to any day where the driver departs or returns.

Accountable Plan Requirements

For per diem payments to be excluded from a driver’s gross income (and therefore not subject to income or payroll tax), the employer must have an accountable plan in place. An accountable plan requires:

• Business connection — the expense must have a legitimate business purpose
• Substantiation — the employee must document the business travel (date, destination, business purpose)
• Return of excess amounts — any per diem paid above the IRS-approved rate must be returned by the employee or treated as wages

Without a documented accountable plan, all per diem payments default to non-accountable treatment — meaning they’re included in wages and subject to all applicable taxes. At that point, the program loses most of its financial benefit for both the carrier and the driver.

Common Errors That Trigger IRS Scrutiny

Certain patterns in per diem programs consistently attract IRS attention during audits. Fleet managers should watch for these:

• Applying per diem to local drivers — as noted above, drivers who return home each day don’t qualify; including them in a per diem program is the most common compliance failure
• Paying above the IRS rate without wage treatment — any per diem above $80/day (for 2025) must be included in taxable wages
• No written accountable plan — verbal policies don’t satisfy IRS requirements; the plan must be documented
• Poor trip records — substantiation requires records of travel dates and destinations; dispatch logs or ELD data should be retained to support per diem claims
• Inconsistent application — applying per diem to some drivers but not others without a documented policy basis raises questions in an audit

Per Diem for Owner-Operators

Owner-operators (self-employed drivers) handle per diem differently than company drivers. Rather than receiving a per diem payment from an employer, owner-operators deduct their actual meal and incidental expenses, up to the IRS per diem rate, as a business expense on Schedule C. For 2025, that means owner-operators can deduct up to $80 per day for days away from home, subject to the 80% meals deduction limitation that applies to transportation workers.

Owner-operators leased to a carrier should be careful about how per diem is structured in their lease agreements — some carriers offer per diem programs to leased operators, but the tax treatment differs from what applies to W-2 employees. Consulting a tax professional familiar with trucking is strongly recommended.

For carriers managing W-2 driver per diem programs, the administrative requirements are significant but manageable with the right structure. Learn more about how FleetFlo’s per diem management services help carriers build compliant programs that maximize the benefit for both the fleet and its drivers.