What Percentage of Trucking Revenue Do You Actually Keep?
How much of your trucking income gets left in your pocket?
Fuel, vehicle fees, income taxes and business deductions will all play a role in how much trucking income remains after expenses in 2026. Several states are changing tax rates and fees in January, while voters in at least two states will consider income-tax measures that could affect drivers and trucking businesses.
The changes will not affect every driver in the same way. A company driver’s tax situation is different from that of an owner-operator filing Schedule C, and a carrier operating across several states must also account for apportionment and state-specific trucking taxes.
Fuel taxes and vehicle fees are changing
Excise-tax changes taking effect in January include fuel-tax adjustments in Michigan, Minnesota, Oregon and Utah. Changes in fuel taxes can affect operating costs for carriers and independent drivers, particularly those running high mileage or buying large volumes of diesel.
Michigan, New Hampshire and Washington also will increase certain motor-vehicle fees. Washington is scheduled to impose a new rental-car sales-tax rate that will be the highest in the nation.
These costs are separate from income taxes. Trucking companies may also have to manage Oregon’s weight-mile tax, Washington’s Public Utility Tax, fuel-tax reporting through the International Fuel Tax Agreement, heavy-vehicle use taxes and registration programs such as the International Registration Plan.
Eight states are reducing individual income-tax rates
Individual income-tax rate reductions are scheduled to take effect Jan. 1, 2026, in Indiana, Kentucky, Mississippi, Montana, Nebraska, North Carolina, Ohio and Oklahoma.
The listed rate changes are:
| State | 2025 rate | 2026 rate |
|---|---|---|
| Indiana | 3.00% | 2.95% |
| Kentucky | 4.00% | 3.50% |
| Mississippi | 4.40% | 4.00% |
| Montana | 5.90% | 5.65% |
| Nebraska | 5.20% | 4.55% |
| North Carolina | 4.25% | 3.99% |
| Ohio | 3.125% | 2.75% |
| Oklahoma | 4.75% | 4.50% |
Oklahoma also is consolidating its six income-tax brackets into three. Ohio is scheduled to move to a flat-rate income tax, joining 14 other states that use a flat individual income-tax structure.
Eight states do not collect a personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Florida, Tennessee and Texas have constitutional bans on personal income taxes.
Corporate tax reductions will affect some carriers
Corporate income-tax rate reductions are scheduled to begin Jan. 1, 2026, in Nebraska, North Carolina and Pennsylvania. The effect on an individual trucking business will depend on how the company is organized and how income is reported.
Many small carriers operate as sole proprietorships, partnerships or S corporations rather than traditional C corporations. That means changes in individual income-tax rates may be more immediately relevant to an owner-operator or pass-through business, although the overall result still depends on deductions, payroll, distributions and the states where business is conducted.
Ballot measures could change the outlook
Income-tax questions also are appearing on state ballots. Colorado voters will consider a measure that could change the state’s current flat-tax system. Colorado’s current income-tax rate is 4.4% and applies to taxpayers regardless of income.
Amendment 87 would ask voters whether Colorado should move to a graduated income-tax structure, with proposed rates ranging from 3.7% to 8.4%. Colorado has two major and competing measures on the fall ballot, and state law provides that when voters approve conflicting provisions, the provision receiving the most “yes” votes wins.
For truckers who live in Colorado or operate a business there, the result could change how business income is taxed. The effect would depend on the final measure, the driver’s income and the way the business is structured.
North Carolina voters also are scheduled to decide Nov. 3 whether to impose a tighter limit on the state’s income tax. The state is already scheduled to reduce its individual rate from 4.25% to 3.99% in 2026, so the ballot question could become another factor in future tax planning.
Deductions remain important to the bottom line
State tax changes are only one part of the calculation. Federal deductions such as transportation per diem, equipment expensing, bonus depreciation and Section 179 can significantly affect taxable income for eligible trucking businesses.
For 2026, the standard continental United States travel rate described in the provided tax guidance is $80 per day. Under the 80% rule, the deductible amount would be $64 per day. A driver with 250 qualifying days could calculate a potential deduction of $16,000: 250 days multiplied by $80 and then multiplied by 80%.
Self-employed drivers generally report qualifying business expenses on Schedule C. Eligibility and documentation requirements still apply, and the rules differ for W-2 company drivers and business owners.
Equipment purchases are another area requiring attention. The provided guidance says 100% bonus depreciation applies to qualifying equipment placed in service after Sept. 27, 2017, with scheduled phase-down rules and a sunset at the end of 2026. Section 179 rules allow substantial equipment expensing, subject to annual limits, purchase thresholds and state-specific adjustments.
Not every state follows federal depreciation rules. Some states allow bonus depreciation but not Section 179, while others do the reverse. For carriers operating across state lines, the final amount left in the bank depends not only on the federal deduction but also on where revenue is apportioned and which state taxes and fees apply.
