You heard right—per diem is going up in 2025!
Starting in the 2025 tax year, the Department of Transportation per diem rate for meals and incidental expenses is increasing to $80 per full day on the road, with 80% of that amount being deductible. That means $64 per day is deductible, a meaningful bump that can add up fast.
Per diem is one of the most valuable deductions for over-the-road drivers, but it’s only as strong as your records. To make the most of it, be sure to keep a clear, consistent travel log with dates, locations, and overnight stays. The better your documentation, the better your deduction.
And don’t forget: you must meet IRS qualifications to claim this deduction. Not sure if you qualify or how to track your log properly? We’re here to provide better guidance. Reach out to an Abacus! Pro at (417) 380-5000 or transportation@abacuspro.com.
