The Internal Revenue Service (IRS) has released the special per diem rates for the transportation industry for the year starting October 1, 2025 (covering travel from October 1, 2025 through September 30, 2026). See IRS Notice 2025-54.

The Official 2026 (2025-26) Per Diem Rates

These rates apply if you’re eligible under the transportation industry rules (generally truck drivers, freight, moving, etc.). They cover Meals & Incidental Expenses (M&IE) only—not lodging.

*Use the partial-day rate on your first and last day of travel away from home, when the full 24-hour away-from-home requirement isn’t met.

What’s Changed?

Nothing in the dollar amounts: the $80/$86 rates are unchanged from the prior year. What’s changed (or clarified) is the reaffirmation of the rules and the effective period.

The Most Important Part: What You Can Actually Deduct or Reimburse

What you can actually deduct or receive as reimbursement depends on your status (owner-operator versus company driver) and how your employer handles per diem.

1. For Owner-Operators / Self-Employed (1099)

Yes—you may deduct per diem M&IE if you meet the “travel away from home” tax-home test.

For a day fully away, you can use the $80 (CONUS) rate. If you choose to deduct, you must maintain proper records of your business travel days, location, purpose, and comply with either actual cost or per diem substantiation rules.

The standard practice is to deduct 80% of the per diem rate. This means:

• Full day: 80% of $80 = $64 deductible
• Partial day: 80% of $60 = $48 deductible

Make sure you consistently apply this method and document accordingly.

Important note: Even though the $80 is simplified for the transportation industry, standard tax rules may still apply depending on how you allocate meals versus incidentals and whether you are reimbursed versus self-paying. Consult with your tax professional for guidance specific to your situation.

2. For Company Drivers (W-2 Employees)

You generally cannot claim unreimbursed per diem on your federal tax return because the deduction for unreimbursed employee business expenses was suspended for most employees under the Tax Cuts and Jobs Act of 2017.

What you can do: Ask your employer to adopt an “accountable plan” (a written allowance or reimbursement policy) where your employer reimburses you for per diem up to the IRS transportation industry rate ($80/$86) or the employer’s specified rate. If the plan meets IRS rules (you substantiate time, place, and purpose, and you return any excess), then that reimbursement is not taxable income to you.

In short: for W-2 drivers, this is a reimbursement opportunity, not a deduction you claim on your personal return.

Why Your Logbook (Daily Travel Tracker) Is Essential

Whether you’re an owner-operator or a company driver, properly tracking your travel days, locations, start and end times, first and last partial days, and whether you were “away from home” is critical.

Here’s how it plays out:

Owner-operator: You need to demonstrate you were legitimately away for work and not simply commuting to and from home. You must document first and last partial days and capture uses of the $80/$86 rate or actual cost basis correctly.

Company driver: You need to show your employer you meet the travel-away test and ensure the employer’s per diem policy uses the correct rate and that you are eligible under an accountable plan.

Bottom Line

• The rates remain unchanged ($80 CONUS / $86 OCONUS) for the transportation industry for October 1, 2025 through September 30, 2026.
• If you’re an owner-operator, you can deduct using this rate (with proper substantiation); if you’re a W-2 company driver, you should seek tax-free per diem reimbursement, not count on a deduction.
• Keeping a log and documentation is non-negotiable.

Disclaimer: This is educational information only. Tax laws are complex and your situation may vary—always consult with a qualified tax professional.