How owner-operator taxes work
As a leased-on or independent owner-operator you're self-employed. You report revenue and expenses on Schedule C, and you owe two taxes on the profit: self-employment tax (15.3% for Social Security and Medicare, on 92.35% of profit) and income tax, federal and usually state. Nobody withholds either, so you pay them yourself in quarterly estimated payments.
The per diem deduction
For travel from October 1, 2026 through September 30, 2027, the IRS special rate for the transportation industry is $80 a day in the continental US and $86 outside it (IRS Notice 2026-60). Drivers subject to Department of Transportation hours-of-service limits deduct 80% of it, so a full day is worth a $64 deduction. On the days you leave and return home, you count 75% of the rate. Per diem lowers both your income tax and your self-employment tax, which is why it's often worth $3,000 to $5,000 a year.
The 20% QBI deduction
Trucking isn't a specified service business, so owner-operators can usually deduct 20% of their qualified business income, limited to 20% of taxable income. In 2026 that applies in full up to $201,750 of taxable income ($403,500 married filing jointly). Above that, limits based on W-2 wages paid and business property phase in. The calculator phases the deduction out as if you had neither, which may understate it if you own your truck.
Quarterly estimated taxes
If you expect to owe $1,000 or more, the IRS expects four payments, due around April 15, June 15, September 15 and January 15. Pay at least 100% of last year's total tax (110% if your AGI was over $150,000) and you avoid underpayment penalties even if this year turns out higher. Setting aside a fixed amount per mile from each settlement is the simplest way to have the money ready.
Which state taxes you?
Interstate drivers generally pay state income tax only to their home state. Federal law (49 U.S.C. § 14503) bars other states from taxing the pay of interstate drivers. If you have a terminal or business base in another state, check with a tax professional.
FAQ
How much should an owner-operator set aside for taxes?
Most owner-operators owe 15.3% self-employment tax plus federal and state income tax on their net profit. Depending on income and state, that's commonly 20% to 30% of net profit. Because fuel and truck costs take most of the revenue, it's a much smaller share of gross revenue. The calculator turns it into an amount per mile, per week and per quarter.
Can company drivers deduct per diem?
Not on their federal return. W-2 employees can't deduct unreimbursed job expenses, including per diem. Only self-employed owner-operators deduct per diem on Schedule C. Company drivers get the benefit only if their carrier pays per diem through an accountable plan.
Can I deduct my truck payment?
Not the payment itself if you own the truck. You deduct depreciation (often all at once with Section 179 or bonus depreciation) plus the interest on the loan. Lease payments on a true lease are deductible in full. Enter whichever applies in the Truck field.
Do owner-operators get the QBI deduction?
Usually yes, up to 20% of qualified business income. Above $201,750 of taxable income ($403,500 married filing jointly) in 2026, wage and property limits start to apply.
This calculator gives estimates for planning only, not tax advice. It uses 2026 federal brackets, the 2026 standard deduction, the $184,500 Social Security wage base and 2026 state income tax brackets from the Tax Foundation. It assumes the truck is your only income, takes the standard deduction, applies the per diem rate in the continental US, doesn't enforce retirement contribution limits, and doesn't include local income taxes, depreciation recapture or credits. For married filing jointly it assumes your spouse has no income.