Technology expenses are a significant part of running a modern trucking business. From mandatory ELD devices to GPS navigation systems, dash cams, and smartphone apps for truckers, these tools help you stay compliant, efficient, and safe. The good news is that most of these expenses are tax deductible as ordinary and necessary business expenses. An owner-operator spending $1,500-$3,000 per year on technology can save $300-$800 or more in taxes by properly claiming these deductions.
This guide covers the tax deductions available for ELD devices, GPS systems, dash cams, trucking software subscriptions, smartphones and data plans, and other technology used in your trucking business.
| Technology | Typical Cost | How to Deduct | Notes |
|---|---|---|---|
| ELD device (purchase) | $200-$600 | Section 179 or expense | One-time hardware cost |
| ELD monthly service | $15-$40/month | Monthly expense | Deduct as incurred |
| GPS truck navigation | $100-$700 | Section 179 or expense | Professional-grade units |
| Dash cam (front/rear) | $100-$400 | Section 179 or expense | Deductible safety equipment |
| Smartphone (business use) | $600-$1,200 | Business-use percentage | Allocate based on usage |
| Trucking software subscription | $10-$100/month | Monthly expense | IFTA, accounting, dispatch |
1. ELD Device and Service Fees
ELD hardware is fully deductible in the year of purchase. If your ELD costs less than $2,500, you can deduct it immediately as a supplies or other expense. If it costs more, you may need to depreciate it, though Section 179 typically allows immediate expensing. Monthly service fees are deductible as you pay them. Most ELD providers charge $15-$40 per month, totaling $180-$480 per year in deductible expenses. For a complete overview of ELD compliance, see our ELD compliance guide.
2. GPS Navigation Systems
GPS navigation devices designed specifically for truck routing are deductible as business equipment. Consumer GPS units are also deductible if used primarily for business purposes, but only the business-use portion can be deducted. Professional trucking GPS units ($300-$700) include features like low-bridge avoidance, truck-specific points of interest, and routing for commercial vehicles. These are fully deductible if used exclusively for business.
Pro Tip: If you use a single device for both business and personal purposes (such as a smartphone used for both work calls and personal calls), you must allocate the cost based on the percentage of business use. Keep a log of business vs. personal usage for 60 days to establish your business-use percentage. For example, if you use your phone 70% for business, you can deduct 70% of the device cost and 70% of your monthly data plan.
3. Dash Cams and Safety Cameras
Dash cams are increasingly common in commercial trucks, and they serve multiple purposes: they can protect you in accident disputes, improve driving habits, and may lower your insurance premiums. The cost of dash cams is fully deductible as safety equipment. Both front-facing and rear-facing cameras are deductible. If you use a multi-camera system, the entire system cost is deductible. Installation costs are also deductible.
4. Smartphones, Tablets, and Data Plans
If you use a smartphone or tablet exclusively for your trucking business, the full cost is deductible. If you use the same device for personal purposes, you must allocate the cost based on business-use percentage. The same rule applies to monthly data and voice plan charges. Many drivers find it simpler to maintain a separate business phone and data plan to avoid allocation issues. The IRS has not established a specific method for determining business-use percentage, but a reasonable estimate based on your usage patterns is generally acceptable.
5. Trucking Software and App Subscriptions
Software and app subscriptions that help you run your trucking business are deductible. This includes IFTA mileage tracking apps, accounting software (like QuickBooks for truckers), load board subscriptions, dispatch software, fuel optimization apps, and document scanning apps for receipt management. Most of these services charge monthly or annual fees that are deductible as they are paid.
6. Laptop, Computer, and Office Equipment
If you use a laptop or computer for business administration, record keeping, or tax preparation, it is deductible. If you use it exclusively for business, the full cost is deductible. If it is used for both business and personal purposes, deduct the business-use percentage. Printers, scanners, and other office equipment used for your trucking business are also deductible. Items costing more than $2,500 should be depreciated, while less expensive items can be expensed immediately.
7. Internet and Connectivity
The cost of internet service used for your trucking business is deductible. If you have internet at your home office and use it for business, you can deduct the business-use percentage. Mobile hotspot data plans used while on the road are also deductible. If you use a satellite internet system for your truck, the equipment and service costs are deductible.
8. Record Keeping for Technology Deductions
To substantiate your technology deductions, keep receipts for all tech purchases, invoices for monthly service fees, a log of business vs. personal usage for shared devices, and documentation of the business purpose for each technology expense. The IRS typically requires proof that a technology expense was "ordinary and necessary" for your business and that you properly allocated any personal use portion. Good records make it easy to defend your deductions in case of an audit. For more on trucking-specific deductions, see our truck driver tax deductions guide.
Frequently Asked Questions
Can I deduct my entire smartphone cost if I use it for work?
Only the business-use percentage is deductible. If you use your phone 100% for business, the full cost is deductible. If you use it for both, you must allocate based on actual usage or a reasonable estimate. Keeping a separate business phone simplifies this significantly.
Are dash cams tax deductible for truck drivers?
Yes, dash cams are fully deductible as safety equipment for your commercial vehicle. They are considered an ordinary and necessary business expense for protecting your business and improving safety. Both the camera hardware and installation costs are deductible.
Can I deduct ELD monthly fees as a business expense?
Yes, ELD monthly service fees are fully deductible as an ordinary business expense. You can deduct them each month as they are incurred. The initial hardware cost is also deductible in the year of purchase.
Is a trucking GPS deductible if I also use it in my personal car?
If you use the GPS in both your truck (business) and personal car, you can only deduct the business-use percentage. However, if you purchase a GPS specifically for your truck and rarely use it personally, the full cost is deductible. Keep records of how you use the device.
Are load board subscriptions tax deductible?
Yes, load board subscriptions are fully deductible as an ordinary business expense. The cost of accessing load boards to find freight is a direct business expense for owner-operators. Keep records of your monthly or annual subscription fees.