The True Cost of Trucking: A Breakdown of Trucking Costs for Drivers

It’s no secret that truck drivers play an indispensable role in America’s economy. As of 2022, it’s estimated that some 3.5 million truckers in the United States are responsible for transporting over 72% of the country’s freight cargo each year. The job security, freedom, and attractive salary trucking offers make this career path well worth exploring.

However, in order to see consistent profit in the trucking industry, you need to keep a watchful eye on your expenses. Fuel, living costs, taxes, licensing, and other mandatory trucking expenditures can easily consume a substantial amount of your salary each month, especially if you don’t have a budget to help manage everything. To keep trucker expenses under control, it can help to first gain a thorough understanding of all the variables that impact the true cost of operating a truck. Read on to learn all about the variable and fixed costs associated with being a truck driver, along with helpful tips for minimizing truck driver expenses.

Fixed Costs

Many company driver or owner-operator expenses come in the form of fixed costs, meaning they tend to remain the same from month to month. By accurately calculating these overhead trucking costs, you’ll have a much easier time determining the expected profitability of your business. Here are the most important fixed costs to bear in mind.

Supplies and Equipment

Professional truckers need the right tools, safety gear, and equipment onboard to perform their jobs effectively. This equipment should include a fully stocked toolbox, including torque wrenches, crescent wrenches, a sledgehammer, crowbar, and a flashlight. Be sure to also carry safety goggles and work gloves with you in case a maintenance issue arises on the road. In addition, you’ll want to have emergency gear in the truck such as road flares, safety cones, and a complete medical kit.

Don’t forget to also account for the cost of reliable internet access in your truck so you can use a load board to find work. Although you can use your cell phone to log into free load board apps, you may want to use a laptop or tablet instead. If you decide to go that route, you may want to invest in a Wi-Fi card to make sure you can get online no matter where you’re located.

Living Expenses

Luckily, truck drivers are eligible for per diem allowance to help offset the costs of lodging, food, and various other incidental expenses incurred while on the job. As of October 2024, the IRS has increased the maximum per diem allowance from $64 to $80 per day. Trucking companies compensate employees with per diem allowance through an annual tax deduction, an upfront payment, or a fixed percentage of their salaries.

Although taking advantage of your company’s per diem allowance program may help you save more money, it will also work to lower your overall taxable income. If you’re planning on applying for a loan or a mortgage in the near future, this reduced income may negatively impact your eligibility in the eyes of lenders. If you decide to opt out of per diem reimbursement, you’ll want to carefully budget for out-of-pocket room and board costs.

Truck Payment

If you don’t work for a fleet, you will need to purchase or lease your own truck. The monthly payments on your semi will depend on the type of truck, whether it’s new or used, and the type of financing terms you’re offered. For example, leasing a brand new $70,000 truck may cost around $1,400 a month while a $200,000 truck can easily come with a monthly payment of $4,000 or more. If you purchase a truck outright, be aware that a substantial down payment will be required.

Insurance and Warranties

Each state has specific insurance requirements for semi-truck drivers, so if you intend to travel all over the U.S. hauling cargo, you’ll need to make sure your insurance meets the minimum standards established by the Federal Motor Carrier Safety Administration. You will also need to get cargo insurance if you’re moving goods across state lines. If you’re planning on transporting hazardous materials interstate, you will need to pay for hazmat truck insurance, as well. Commercial truck insurance costs vary widely by state, so you’ll want to do some research to determine the expected cost of a policy that works best for your needs.

Permits and Licensing

To start a career as a professional commercial truck driver, you will first need to earn a CDL license. This begins with attending a CDL training program and passing a driving exam. Additional CDL costs include acquiring a hazardous material endorsement, passing a medical exam, and paying any associated fees. The CDL school you choose to attend will largely determine what you pay for a license, but most estimates fall between $4,000 and $8,000.

You will also need the right trip permits and mileage permits to legally travel through various states. Keep in mind that each state has different weight restrictions and renewal guidelines. For example, trucks exceeding 18,000 lbs. in New York must renew their mileage permits every three years, while truckers traveling through New Mexico need to renew mileage permits annually. Additional permits you will need include an International Registration Plan (IRP) license plate, a USDOT number, an MC number, and a UCR, or Unified Carrier Registration.

Variable Costs

Commercial truckers also face several variable expenses that tend to fluctuate from year to year. These include tax payments, truck repair services, and fuel. Learning how to better manage these variable costs will help you maximize your trucking profit margins in the long run. Here’s a brief breakdown of each.

Fuel Expenses

Among the many trucking business expenses drivers are responsible for paying, fuel is by far the most expensive. In fact, average fuel costs for truckers can easily fall between $50,000 and $70,000 a year. However, there are several effective strategies for keeping fuel consumption to a minimum. First, inspect your tires thoroughly before every trip to ensure they have adequate tire pressure, and consider investing in aerodynamic add-ons for your truck to reduce drag, such as rear tail fairings or a cab extender. You may also want to spend a little time optimizing your route to avoid known traffic congestion or other obstacles that will increase the amount of time your truck is idling. Finally, take advantage of cruise control whenever possible to maintain the ideal speed of 60 miles per hour for optimal engine efficiency.

Truck Repair and Maintenance

The average trucker will drive up to 600 miles a day, and this amount of travel will put considerable strain on the vehicle. Issues with the brakes, transmission system, clutch, or suspension are commonplace, and any emergency repairs will quickly drive up your annual truck maintenance costs. In general, you can expect to pay up to $15,000 a year on basic maintenance and component replacement. To help lower repair and maintenance costs, always perform a comprehensive inspection of the vehicle before any trip. Any issues found should be addressed right away to avoid more expensive repairs down the road.

Taxes

Just like with any job, truckers who work for a company are required to pay income tax on their earnings. However, owner-operators are considered self-employed and are responsible for paying estimated taxes quarterly. Those who drive a vehicle in excess of 55,000 lbs. are also required to pay the Heavy Vehicle Use Tax or HVUT. This tax starts at $100 and increases by $22 for every 1,000 lbs. over 55,000 lbs. The HVUT tax peaks at $500 for trucks weighing over 75,000 lbs.

Additional taxes for truckers include applicable local and state taxes which vary widely across the nation. You will also need to pay fuel tax for all diesel purchases, and the amount you’ll pay will depend on the state in which the fuel was acquired. Although navigating trucking taxes can seem a little complicated at first, there are a number of trucking financial planning tools and apps available — such as QuickBooks — that can make matters much easier.

Tips for Managing Trucking Expenses

Between taxes, fuel costs, insurance, and other expenditures, minimizing overhead costs can be an ongoing challenge for truckers. However, there are several ways to reduce spending and save more of your hard-earned money. Here are some simple pointers that can help with trucking expense management.

Use a Fuel Card

Similar to a credit card, a fuel card allows truckers to purchase diesel without cash, and often at a discounted price. In addition, fuel cards typically provide users with reward points or direct cashback on fuel purchases. Other cards may offer perks like around-the-clock roadside assistance or discounts on tire maintenance.

Avoid Veering Off Budget

Lay out a strict budget and sticking to it is potentially the single best way to keep your expenses from getting out of hand. Allocate a portion of each paycheck to expenses you can’t avoid like taxes, fuel, insurance, and food. From there, you can determine how much money can be put into savings and what can go toward discretionary spending.

Practice Consistent Bookkeeping

Always track every trip you make and hold on to any receipts, especially when you purchase fuel. Maintain detailed records of any maintenance or repairs performed on your truck as well. Come tax time, these records will allow you to claim more tax write-offs so you can put more money back in your pocket at the end of the year. If you decide to have a professional accountant do your taxes for you, having thorough records can make all the difference in maximizing your refund.

How America’s Trucking Warranty can Help

In the trucking industry, unexpected breakdowns and repairs can quickly bring your work to a grinding halt. That’s why America's Trucking Warranty provides heavy-duty truck warranties that will keep your vehicle covered and help get you back on the road as soon as possible. No inspection is needed to qualify for our extended warranty program, and we accept repairs at licensed repair facilities all over the United States and Canada. Best of all, our warranties will pay the full price of new parts and repairs. If you’re looking for ways to save more money on the road, our team at ATW is here to help. If you’re ready to learn more, reach out today for a free quote and a member of our friendly team will guide you through the process.