Per Diem
What is per diem? Per diem is a daily allowance paid to drivers for meals and incidentals while away from home, typically untaxed up to the IRS-set rate.
Full definition
OTR drivers can claim a per diem of approximately $69/day (2024 IRS rate, subject to updates) as a non-taxable allowance for meals and incidentals. The actual policy depends on whether the carrier runs a per diem pay program or whether the driver self-claims on tax filings.
For company drivers, per diem pay programs lower taxable income (and Social Security base), which has trade-offs for retirement and worker-comp benefits.
Owner-operators have more flexibility — they typically expense actual meal costs or claim per diem at year-end via their tax preparer.