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Trucking Bookkeeping: Per Diem, Fuel, and IFTA Explained

Published April 2026

Trucking is a unique business with specific tax deductions and compliance requirements that are often overlooked. Owner-operators and trucking companies face complex reporting requirements including IFTA tax, per diem allowances, and fuel tracking. Understanding these rules can save thousands in taxes.

Per Diem: The Trucker's Tax Advantage

Owner-operators and truck drivers on the road can claim a per diem deduction for meals and incidental expenses. As of 2026, the federal per diem rate is approximately $69 per full day or $52 per partial day for drivers away from home. You can deduct this without itemizing receipts, though you must maintain a log of travel days. This deduction significantly reduces taxable income.

Fuel Costs and Gallons Purchased

Fuel is typically the largest operating expense for trucking businesses. Track every fuel purchase with date, location, gallons, and amount. Many trucking owners use fuel cards which provide detailed records automatically. Monitor fuel efficiency over time to identify mechanical issues early. Fuel costs are fully deductible as business expenses.

Understanding IFTA Tax

The International Fuel Tax Agreement (IFTA) allows trucks to travel across state and national borders while paying fuel tax to one state rather than each state individually. You register in your home state and file quarterly IFTA returns reporting miles driven and fuel purchased in each state. The difference between fuel tax paid and owed results in a credit or payment. Proper documentation is critical for IFTA compliance.

Track Miles by State for IFTA

Maintain detailed mileage logs showing miles driven in each state to calculate IFTA liability accurately. Modern GPS and trucking software automate this, but if tracking manually, record beginning and ending odometer readings for each trip. Inaccurate mileage data can trigger IFTA audits and penalties.

Vehicle Depreciation and Capital Costs

Tractors, trailers, and equipment are depreciated over time rather than expensed immediately. The cost basis includes the purchase price plus capitalized repairs and improvements. You can depreciate over 5 to 7 years or use bonus depreciation to claim faster deductions. Section 179 expensing may allow you to deduct up to $1,220,000 in equipment purchases immediately (limits change annually).

Maintenance, Repairs, and Equipment Costs

Routine maintenance and repairs are fully deductible. Parts, labor, tires, oil changes, and preventive maintenance all reduce taxable income. Major overhauls or rebuilds may be capitalized and depreciated rather than expensed. Track maintenance by vehicle and category to identify expensive repairs and plan for replacements.

Insurance and Licensing

Commercial truck insurance, liability coverage, and worker's compensation are fully deductible. License renewals, DOT compliance, and permit fees are also deductible. Maintain all insurance and license documentation for your tax records and to support audit defenses.

Home Office and Dispatch

If you operate your trucking business from a home office, you can deduct a percentage of home expenses based on the square footage of your office. This includes rent, utilities, internet, and maintenance. Using the simplified method, you can deduct $5 per square foot up to 300 square feet ($1,500 maximum).

Trucking bookkeeping is specialized and rules change frequently. Proper documentation and tracking ensure you claim every available deduction while maintaining compliance with IFTA and DOT requirements.