Tax regulations change and vary for every individual. Contact a tax professional to ensure you are following all federal and state regulations before filing.
As a trucking business owner, you must know the importance of maintaining your finances. Licensing fees, insurance, and fuel costs can add up quickly. However, many of these expenses are tax-deductible. Tax deductions are an excellent way for owner-operators to reduce the tax burden and keep more money in their pocket. When you prepare to file your taxes, take advantage of the deductions below.
You Are Self-Employed, That Changes How You Are Taxed
As an owner-operator, you pay both the employer and employee portions of Social Security and Medicare, totaling 15.3% of net earnings (the self-employment tax) on top of income tax. You can deduct half of your self-employment tax from your gross income, which lowers your taxable income. It is a partial offset, but it adds up.
Quarterly Estimated Taxes: Do Not Skip Them
No taxes are withheld from your settlements, which means you are responsible for quarterly estimated payments to the IRS, which are due in April, June, September, and January. Underpaying triggers penalties on top of your April balance. Set aside 25-30% of your net income each month to stay on track.
Owner-Operator Tax Deduction List
Travel Expenses
Some travel expenses can be deducted from your taxes, including:
- Lodging
- Parking
- Tolls
- Fuel
- Fuel additives
- Scales fees
Meals
As an owner-operator, you can claim a per diem deduction for food and other incidental costs while on the road for longer than a typical workday. In 2025, the per diem rate is $69 per day for every day the driver is away from home. You can deduct 80% of this, or $55.20/day. Be sure to keep records of the following:
- Travel dates
- Receipts
- Meal costs
Per diem rates and regulations can change annually, so staying current with the latest rules is important.
Maintenance
Maintenance of your truck is an important part of running your business. Therefore, maintenance expenses can be reduced. Below are some examples:
- Repairs
- Oil changes
- Tires
- Labor
- Parts
You may also be able to deduct maintenance expenses in the year they occurred or depreciate them over several years, depending on the type. Consult a tax professional to understand your legal options.
Payments and Equipment
If you lease your truck, you may be able to deduct your lease payment as a business expense. If you own your own truck, you can use a tax write-off for depreciation. You may also be able to deduct interest paid on the loan for your truck and trailer.
Insurance
Any insurance you pay for related to your business can be tax-deductible. Including:
- Bobtail insurance
- Physical damage insurance
- Cargo liability insurance
If you pay for your own health insurance, you can deduct the premium on the IRS Schedule 1 Form 1040.
Business Expenses
Expenses related to your trucking business can be deducted, including a variety of costs needed to operate your business:
- Office supplies (paper, postage, cleaning supplies)
- Trucking-related subscriptions
- Association dues
- Accounting services
- Permits and license fees
- Dispatch and brokerage fees
- Trucking software and load board apps
Truck Supplies
The following trucking supplies can be deducted as tools or equipment used to run your business:
- Tire chains
- Ice scrapers
- Snow brushes
- Wire cutters
- Bungee cords
Medical Expenses
DOT physicals are required for truck drivers to maintain their commercial driver’s license (CDL). Owner-operators can deduct out-of-pocket expenses for medical exams required for work.
Technology
If you are using any technology for your business, this can be deduced from your taxes. Some examples include:
- Electronic Logging Device (ELD)
- CB Radio
- Internet
- Cell Phone
- Tablet
However, only a portion can be deducted if the device is used for both personal and business use.
Safety Gear
Safety gear is necessary for daily operations and qualifies as a tax write-off. Some examples include:
- Gloves
- Steel-toed shoes
- Reflective vests
- Safety glasses
- Branded or required work clothing
To qualify, items must be used for work, such as loading and unloading freight or operating your truck.
Additional Strategies for 2025
Track Expenses All Year, Not Just at Tax Time
One of the most costly mistakes owner-operators make is waiting until tax season to organize receipts. Reconstructing 12 months of expenses in March leads to missed deductions and inaccurate returns. Instead, log expenses in real time using a spreadsheet, a mileage and expense tracking app, or accounting software like QuickBooks Self-Employed. Save fuel, repair, and major purchase receipts. Bank statements help, but itemized receipts provide stronger protection in an audit.
Work With a Truck-Savvy CPA
Not every accountant understands the trucking industry. A CPA experienced with owner-operators and leased contractors understands industry-specific deductions, per diem rules, carrier settlement statements, depreciation strategies, and multi-state income. The right professional often saves far more than they cost.