One of the biggest advantages of being an owner-operator is the number of legitimate business expenses you can deduct from your taxes. Most new truckers dramatically overpay because they do not know what they can write off. Here is the complete list.
Important: This is general information only — not tax advice. Consult a tax professional who specializes in trucking before filing. Understanding your income potential first? Read our guide on how much owner-operators actually make.
Vehicle and Equipment Deductions
- Truck payments (interest portion): If you finance your truck, the interest on your loan is deductible — not the principal
- Truck depreciation (Section 179): Allows you to deduct the full cost of your truck in the year you buy it, up to IRS limits
- Trailer payments and depreciation: Same rules as your truck
- Lease payments: If you lease your truck, the full lease payment is typically deductible
Fuel and Operating Costs
- Diesel fuel: Every gallon you buy for your truck is deductible — keep all receipts
- Oil and fluids: Engine oil, transmission fluid, coolant, DEF
- Tires: Replacement tires and repairs
- Maintenance and repairs: Everything from oil changes to engine work
- Truck washes: Keeping your truck clean for business purposes
- Fuel cards: Read our guide on best fuel card programs for truckers to maximize savings
Insurance Deductions
- Commercial auto liability insurance
- Cargo insurance — read our guide on cargo insurance coverage
- Bobtail insurance
- Occupational accident insurance
- Health insurance premiums — 100% deductible for self-employed truckers
Business and Administrative Costs
- Load board fees: DAT, Truckstop.com, 123Loadboard subscriptions — read our load board comparison guide
- Factoring fees: The percentage factoring companies charge is a business expense — read our guide on freight factoring explained
- Accounting and bookkeeping fees
- Legal fees related to your trucking business
- Business licenses and permits
- IFTA fuel tax filing costs
- ELD device and subscription costs
- Cell phone (business use portion)
- GPS and navigation tools
Per Diem and Meals
Owner-operators who travel away from home overnight can deduct a per diem for meals. The IRS allows truckers a special higher per diem rate — currently 80% of the standard rate is deductible. Keep a detailed log of overnight trips to substantiate this deduction.
Home Office
If you use part of your home exclusively for business — dispatch, bookkeeping, scheduling — a portion of your home expenses may be deductible. This requires careful documentation and exclusive business use of the space.
What you cannot deduct
- Personal meals and entertainment unless clearly business-related
- Traffic fines and penalties
- Personal clothing even if you only wear it while driving
- Commuting to your home terminal
Quarterly estimated taxes
As a self-employed owner-operator you must pay estimated taxes quarterly — January, April, June, and September. Failing to do so results in IRS penalties. Set aside 25-30% of your net income throughout the year for taxes.