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Change anything. Results update as you type. Defaults show a $0.68-per-mile example.
Pay and schedule
Away from home (per diem)
Costs and benefits
Ask the AI tax helper about your numbers
Ask about write-offs, tax brackets, quarterly payments or what your take-home would be. It sees the numbers from the calculator above.
How much does a truck driver take home on W-2 vs 1099?
At the same rate per mile, a 1099 driver usually keeps less before deductions and more if they can claim deductions like per diem. Here’s why the two paychecks differ:
- Payroll tax. A W-2 employee pays 7.65% (Social Security 6.2% + Medicare 1.45%) and the employer pays the other 7.65%. A 1099 driver pays both halves, 15.3%, on 92.35% of net profit (called self-employment tax) and deducts half of it from income tax.
- Deductions. A 1099 driver can deduct business costs, 80% of per diem (IRS rate $80/day for ‘transportation industry’ workers while away overnight), self-employed health insurance, and may qualify for the 20% qualified business income deduction. A W-2 driver generally can’t deduct unreimbursed job expenses.
- Benefits and risk. W-2 jobs often include health insurance, paid time off, workers’ compensation and unemployment coverage. 1099 drivers cover those themselves, and usually pay for truck costs, fuel and insurance out of their pay.
- Taxes owed. W-2 taxes come out of each paycheck. 1099 drivers must pay estimated taxes quarterly (April 15, June 15, September 15, January 15) or risk penalties.
Use the “1099 pay needed to match W-2” line in the results to compare a 1099 offer with a W-2 offer fairly. It already includes the costs and per diem you enter.
What this calculator includes (and doesn’t)
- Included: 2026 federal income tax brackets and standard deduction, Social Security (wage base $184,500) and Medicare, additional Medicare tax, self-employment tax, the half-SE-tax deduction, the 20% QBI deduction, the per diem deduction, self-employed health insurance, and a flat state tax rate you choose.
- Not included: tax credits (child tax credit, EITC), itemized deductions, retirement contributions, other income, spouse income, multi-state filing, local taxes, and the meals you actually buy on the road (not subtracted on either side).
- Check yours: use this to compare offers, then confirm details with a tax professional before filing or signing.
Related tools
- Cents-per-mile pay calculator: weekly, monthly and yearly pay at any rate
- Per diem calculator: your deduction and tax savings
- Free Job Offer Checklist: 23 questions to ask any carrier before you sign
Frequently asked questions
Is 1099 or W-2 better for a truck driver?
It depends on pay, costs and benefits. At the same rate per mile, a 1099 driver pays both halves of Social Security and Medicare (15.3%) but can deduct business costs and 80% of per diem. A W-2 driver pays 7.65% and usually gets benefits. Enter both offers in the calculator to compare take-home pay, and look at the “1099 pay needed to match W-2” line.
How much do truck drivers pocket at 68 cents per mile?
At $0.68 per mile, 2,500 miles a week and 50 weeks, gross pay is $85,000 a year. As a single W-2 driver with no state income tax, that is roughly $68,600 take-home after federal income tax and payroll tax (2026 rules). A 1099 driver’s result depends heavily on costs and per diem. The calculator shows both.
What is self-employment tax for truck drivers?
Self-employment tax is the 1099 version of payroll tax: 15.3% (12.4% Social Security up to $184,500 plus 2.9% Medicare) on 92.35% of your net profit. You can deduct half of it when figuring income tax.
How much per diem can a truck driver deduct?
Truck drivers subject to DOT hours-of-service rules can deduct 80% of the IRS meals-and-incidentals rate for each day away from home overnight. The special transportation-industry rate is $80/day in the continental U.S. W-2 employees generally can’t deduct it unless their employer reimburses under an accountable plan.
How much should a 1099 truck driver set aside for taxes?
Many 1099 drivers set aside 20–30% of each settlement, depending on income, deductions and state. The calculator estimates your own percentage. Estimated payments are generally due April 15, June 15, September 15 and January 15.
Does this calculator give tax advice?
No. It gives educational estimates using 2026 federal rules and a flat state rate. Your actual tax depends on your whole return. Confirm with a tax professional.
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These tools give estimates for education only using 2026 U.S. federal rules (figures as of October 2026). They are not tax, legal or financial advice, and your real tax depends on your full situation, your state, and the choices you make on your return. Talk to a tax professional before making decisions. Sources: IRS Rev. Proc. 2025-32, IRS Notice 2026-60, SSA contribution and benefit base.