How much should an owner-operator set aside for taxes per settlement?

A common rule is 25–30% of your net (take-home after expenses), not your gross. This covers about 15.3% self-employment tax plus federal income tax. This tool defaults to 28% of net and shows the exact dollars to move to your tax account each settlement.

Is the tax set-aside calculated on gross or net pay?

Net. You can only owe tax on profit, so set aside a percentage of gross minus your fuel, insurance, truck payment, dispatch fee, and other deductions — not on the full settlement amount. Setting it on gross over-saves and is the number-one source of "this leaves me broke" confusion.

What deductions come out of a trucking settlement?

Typically fuel, insurance (occ/acc plus truck, cargo, and liability), truck or trailer payment, a maintenance escrow, ELD and permits (IRP/IFTA, plates), and a dispatch fee (often a percent of gross). Carrier settlements may also show items like Comdata fees, cargo, or fuel advances — add those as "Other" rows.

How do I calculate my cost per mile?

Add up every deduction for the settlement and divide by the miles you ran. This tool does it automatically and shows your all-in cost per mile next to your revenue per mile, so you can see whether the week actually profited.

What's the difference between gross, net, and take-home pay in trucking?

Gross is the full settlement before deductions. Net is what's left after fuel, insurance, payments, and dispatch. Take-home ("pay yourself") is net minus the tax money you wall off — the cash that actually stays in your pocket this week.

Truckers

Owner-Operator Settlement Calculator

Drop in one weekly settlement and see what's actually yours: net take-home, your all-in cost per mile, and the exact dollars to wall off for taxes — off your net, not your gross.

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Set aside for taxes

$658

28% of your $2,350 net — move this to your tax account now.

Net take-home: $2,350
Pay yourself: $1,692
Total cost per mile: $1.20/mi

Settlement breakdown
Line	Amount
Gross settlement	$5,000
Fuel	− $1,100
Insurance	− $350
Truck / trailer payment	− $600
Maintenance escrow	− $150
ELD / permits	− $50
Dispatch (8% of gross)	− $400
Net take-home	$2,350
Tax set-aside (28% of net)	− $658
Pay yourself	$1,692

How this is calculated

This tool collapses one weekly settlement into three numbers a 1099 owner-operator can act on: net take-home, your all-in cost per mile, and the dollars to set aside for taxes.

Gross vs. net. Gross is the full settlement (a flat amount, or your rate per mile times the miles you ran). Net is what's left after fuel, insurance, your truck or trailer payment, maintenance escrow, ELD and permits, the dispatch fee, and any other lines. You only take home the net.

The tax set-aside comes off your net, not your gross. You owe tax on profit, so the percentage is applied to net — never the full settlement. A common rule of thumb is 25–30% of net (this tool defaults to 28%), which covers roughly 15.3% self-employment tax plus federal income tax. Setting a percentage on gross over-saves and is the most common reason drivers feel a settlement "left them broke." If a settlement loses money, there's no net to tax, so the set-aside is $0.

Maintenance escrow is still your money. It's a savings bucket for future repairs and tires, not a cost that left your pocket — it lowers your take-home this week but stays yours.

This is general guidance, not tax advice. Your real liability depends on your total annual income, all your deductions, and your state. Confirm your quarterly estimates with a CPA or a trucking bookkeeping service.

Frequently asked questions

How much should an owner-operator set aside for taxes per settlement?: A common rule is 25–30% of your net (take-home after expenses), not your gross. This covers about 15.3% self-employment tax plus federal income tax. This tool defaults to 28% of net and shows the exact dollars to move to your tax account each settlement.
Is the tax set-aside calculated on gross or net pay?: Net. You can only owe tax on profit, so set aside a percentage of gross minus your fuel, insurance, truck payment, dispatch fee, and other deductions — not on the full settlement amount. Setting it on gross over-saves and is the number-one source of "this leaves me broke" confusion.
What deductions come out of a trucking settlement?: Typically fuel, insurance (occ/acc plus truck, cargo, and liability), truck or trailer payment, a maintenance escrow, ELD and permits (IRP/IFTA, plates), and a dispatch fee (often a percent of gross). Carrier settlements may also show items like Comdata fees, cargo, or fuel advances — add those as "Other" rows.
How do I calculate my cost per mile?: Add up every deduction for the settlement and divide by the miles you ran. This tool does it automatically and shows your all-in cost per mile next to your revenue per mile, so you can see whether the week actually profited.
What's the difference between gross, net, and take-home pay in trucking?: Gross is the full settlement before deductions. Net is what's left after fuel, insurance, payments, and dispatch. Take-home ("pay yourself") is net minus the tax money you wall off — the cash that actually stays in your pocket this week.

How to use this calculator

Enter your gross Type your flat settlement amount, or switch to per-mile and enter your rate and the miles you ran.
Add your deductions Fill in fuel, insurance, truck payment, maintenance escrow, ELD and permits, your dispatch percentage, and any "Other" line items from your settlement sheet.
Read your numbers See your net take-home, all-in cost per mile, and the exact dollar amount to set aside for taxes. Adjust the tax percentage if your situation differs.