They often say you have to spend money to make money—and that’s true in trucking. This is an industry with great income potential, but it comes with a lot of overhead. As an owner-operator, it’s important to be aware of the expenses so you can plan and set up a reliable business model. Let’s review some of the expenses you should anticipate. 

Why Are Expenses Important for Truck Drivers? 

There is an extensive list of expenses that come with being an owner-operator. Ultimately, you’ll be able to claim these expenses as tax deductions, so always be sure you are keeping track of everything and recording receipts so you have everything ready at the end of the year. It’s important to be clear-eyed about the expenses that come with being an owner-operator so you can plan ahead and avoid cashflow mishaps.¹ 

Common Expenses for Trucking Owner-Operators

1. Fuel

This is one of the most significant recurring expenses for any owner-operator, as it can account for nearly a quarter of operating costs, depending on your routes. For example, in 2021, the average owner-operator spent over $45,000 per year on fuel. This number can be managed by effective route planning, but it must be tracked throughout the year so you can claim your expenses properly.¹ Some other ways to reduce your fuel costs are to choose long-lasting, high-quality tires, driving at a slower speed, using a fuel card, and negotiating your fuel surcharges.² 

2. Truck Costs

This category includes the cost of purchasing and leasing a truck, as well as the price of maintenance and repairs. The truck payment is a high monthly expense that you’ll need to meet each month until the vehicle is paid off in full. For many owner-operators, leasing is a less risky and costly way to enter the industry. Maintenance and repairs can also cost a large sum – around $0.175 per mile (with a lot of room for variation). Always be sure to set aside some of your income to cover these recurring (and sometimes surprising) costs that are bound to show up throughout the year.¹

3. Annual Licensing

In order to operate a truck, you’ll have to keep up with licenses and registrations. These costs are not as high as the vehicle or fuel, but you need to pay attention to them so you stay in compliance with all regulations. Some examples of permits and licensing you’ll need to pay for are your business licenses, driver’s license, US DOT registration, and vehicle inspection.² 

4. Insurance

You’re required to pay for several types of insurance for your business, including cargo insurance, commercial auto liability, and property damage insurance.³  Additionally, you’ll need to cover the cost of health insurance, which can come at a high premium. But you can claim these premiums as deductions at the end of the tax year.²

5. Taxes

Operating your own business doesn’t mean you are exempt from taxes. You’ll have to pay both federal and state taxes, as well as self-employment taxes. Typically, it’s wise to also make quarterly estimated tax payments to avoid owing a large sum at the end of the year. When you do file your taxes, you’ll be able to deduct the expenses we’ve discussed so they don’t count toward your income.² 

6. Auto Load Board Subscriptions

Load boards are helpful as a way to quickly find jobs—but most require a paid subscription, and many owner-operators will choose to subscribe to more than one. Be sure to factor these subscription costs into your expenses. There are a handful of free load boards, like ACV Transportation.

7. Broker fees

If you aren’t relying solely on load boards, you are likely working with brokers to get additional hauls on your schedule. These brokers set their own rates and charge fees, so be sure to factor that into your income.² 

8. Tools and Supplies

Plan to save budget for additional materials that you might need, including safety and repair tools; uniforms and workwear; and office supplies, tablets, and tech tools that help you get the job done.

Find Trucking Jobs With ACV Transportation 

ACV Transportation eliminates load board fees, saving you money from the start.  What’s even better, working with ACV Transportation gives you access to thousands of B2B loads daily from Car Dealerships nationwide. Transport locally or regionally and over the road (OTR). Enjoy fast payments, with payouts within 5 business days of submitting your BOL. Reach out to us today to learn more about how we can help grow your business!

This site is provided for informational purposes only and should not be construed as legal advice. ACV is not liable for reliance on the information provided herein. We do not endorse, nor are we responsible for, the privacy practices or the content of the sites linked in this blog.

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Sources

1. AltLine. 2024. “Owner-operator expenses for running a trucking company.” AltLine. Retrieved November 20, 2024. https://altline.sobanco.com/owner-operator-expenses/ 
2. Truckstop. 2024. “Owner-operator costs of doing business.” Truckstop. Retrieved November 20, 2024. https://truckstop.com/blog/owner-operator-expenses/ 
3. Golden Apple Agency. “An exhaustive list of truck driver tax deductions you can claim.” Golden Apple Agency. Retrieved November 20, 2024. https://www.goldenappleagencyinc.com/blog/truck-driver-tax-deductions