2024-25 IRS Updates Per Diem Rates for Truck Drivers

Summary: The IRS has increased the per diem rate for truck drivers from $69 to $80, starting October 1, 2024. Learn how this change affects your payroll tax savings and what steps to take to stay compliant in 2025.

Update: 2025–26 IRS Per Diem Rate for Truck Drivers: No Change Announced

As of September 2025, the IRS has not announced any changes to the trucking industry per diem rate for the 2025–26 fiscal year. The $80 per day rate that took effect on October 1, 2024, will remain in place through the end of September 2026.

That means trucking companies and drivers can continue using the $80 per diem rate for another year to reduce payroll taxes and boost take-home pay.

What Is the IRS Per Diem Rate for Truck Drivers?

If you’re new to per diem, here’s a quick breakdown:

The IRS per diem rate is the daily allowance drivers can receive to cover meals and incidental expenses while away from home on the road. This rate is tax-free when handled correctly and doesn’t count as regular wages.

Using the per diem rate allows trucking companies to:

Lower payroll taxes

Increase drivers’ take-home pay

Simplify recordkeeping for travel expenses

The IRS per diem rate for truck drivers in 2024–25 is $80 per full day of travel. This rate went into effect on October 1, 2024.

IRS Raises Per Diem Rate from $69 to $80 for Truck Drivers

Each year, the IRS reviews and updates its per diem rates. For the fiscal year starting October 1, 2024, the per diem for transportation industry drivers increased by $11 per day, rising from $69 to $80.

This is one of the largest per diem increases in recent years and reflects rising costs for meals and travel expenses.

Why the $80 Per Diem Rate Matters for Trucking Companies

If you’re a fleet owner, payroll manager, or finance decision-maker, the new IRS per diem rate could impact your bottom line in a positive way.

Benefits of the New $80 Per Diem Rate:

Higher take-home pay for drivers without increasing gross wages

Lower payroll taxes for the company (no Social Security, Medicare, or unemployment taxes on per diem amounts)

More available cash flow for other operational expenses

Improved driver retention by offering competitive compensation

How Trucking Companies Can Start Using the $80 Per Diem Rate

To take advantage of the increased rate, your company needs to make sure it’s using a compliant per diem program.

Here’s what that means:

Flat-rate per diem must follow IRS rules for travel time and recordkeeping

Drivers must be overnight away from their tax home

Proper payroll documentation is required to separate per diem from regular wages

The per diem rate should be applied consistently and not vary by driver preference

If you’re not sure how to implement this, Superior Trucking Payroll Service can handle it for you. We specialize in IRS-compliant per diem programs tailored to the trucking industry.

Visit our Per Diem page to learn how we help companies like yours reduce payroll taxes legally and efficiently.

How Current Clients Can Update to the New Rate

If you’re already working with Superior Trucking Payroll Service, there’s good news:
We’ve already updated your system to reflect the new $80 per diem rate as of October 1, 2024. You don’t have to take any action.

If you’re unsure whether the new rate has been applied or want to double-check your setup, feel free to contact your account manager or reach out to our support team.

Why You Shouldn’t Wait to Implement the New Rate

If your trucking company is still using the old $69 per diem, you’re likely:

Overpaying in payroll taxes

Missing out on driver retention opportunities

Falling behind competitors who have already updated their payroll practices

Switching to the new rate isn’t just about following the IRS — it’s about making your business more efficient.

Why Work With Superior Trucking Payroll Service?

At Superior Trucking Payroll Service, we specialize in payroll and per diem compliance for trucking companies only — it’s all we do. We know how to help fleets maximize tax savings while staying fully compliant with IRS rules.

When you work with us, we:

Handle all updates automatically

Maintain accurate records to pass audits

Offer ongoing support tailored to the trucking industry

You don’t have to guess. You don’t have to worry. We’ve got it covered.

Frequently Asked Questions

When does the new $80 per diem rate take effect?

The new IRS per diem rate for truck drivers took effect October 1, 2024. It will remain in place through September 30, 2026, unless changed by the IRS.

How much can my company save with the new rate?

Many companies save up to $1,739 per driver per year by switching to a compliant per diem program. Savings may vary depending on travel days and payroll size.

Does the $80 rate include lodging?

No. The per diem for transportation industry drivers only covers meals and incidental expenses (M&IE). Lodging is handled separately, usually by receipts or direct payment.

Per Diem for Trucking Companies

Final Thoughts: Use the IRS $80 Per Diem to Boost Efficiency in 2025

The IRS per diem rate for truck drivers plays a big role in reducing payroll taxes and increasing driver satisfaction. Now that the rate has gone up to $80 per day, there’s even more incentive to make sure your program is updated and compliant.

And with no changes expected for 2025–26, you can count on this rate staying steady for another year.

Ready to Maximize Your Payroll Tax Savings?

Let Superior Trucking Payroll Service take care of your per diem and trucking payroll the right way.

Let’s Talk

Written by Mike Ritzema

Before founding Superior Trucking Payroll Service, Mike was the CFO of a trucking company with 80 trucks and a thriving brokerage. This experience gave him the perspective that a payroll solution has to make the lives of the office people better. All the solutions he has designed are to benefit everyone. Our company mission is to help trucking families and that includes the company owners, the drivers, and the office.