LLC vs S corp for truck drivers (2026)
At $60,000 of profit, an S corp election saves a truck driver money over a sole proprietorship in 1 of 51 states, with a $42,000 salary. Pick your state for the calculator with these numbers filled in.
- This work is not a specified service trade or business, so the 20% QBI deduction stays available above the income limit, subject to the wage limit. Trucking is not a listed field in Treas. Reg. 1.199A-5(b)(2). law.cornell.edu
- Pay figure is for employed heavy truck drivers; owner-operators carry fuel, truck payments and heavy vehicle use tax (Form 2290), so revenue is many times profit. irs.gov, 2026 rates
- Median pay for employees in this job: $58,640 (BLS, May 2025).
| State | Sole proprietor | S corp | Saving |
|---|---|---|---|
| District of Columbia | $16,395 | $15,975 | $420 |
| South Carolina | $13,195 | $13,410 | +$215 |
| Nebraska | $13,871 | $14,220 | +$349 |
| Louisiana | $13,325 | $13,689 | +$364 |
| Alabama | $14,560 | $14,976 | +$416 |
| Missouri | $13,720 | $14,142 | +$422 |
| Arizona | $13,037 | $13,461 | +$424 |
| Virginia | $14,429 | $14,858 | +$429 |
| Mississippi | $13,535 | $13,971 | +$436 |
| Iowa | $13,544 | $14,009 | +$465 |
| Michigan | $14,156 | $14,634 | +$478 |
| Kansas | $14,349 | $14,831 | +$482 |
| West Virginia | $13,724 | $14,211 | +$487 |
| Indiana | $13,652 | $14,148 | +$496 |
| Georgia | $14,071 | $14,574 | +$503 |
| Arkansas | $13,929 | $14,439 | +$510 |
| Texas | $12,037 | $12,590 | +$553 |
| Kentucky | $13,871 | $14,428 | +$557 |
| New Mexico | $13,492 | $14,057 | +$565 |
| Oklahoma | $14,001 | $14,588 | +$587 |
| Idaho | $13,884 | $14,494 | +$610 |
| South Dakota | $12,037 | $12,658 | +$621 |
| Florida | $12,037 | $12,667 | +$630 |
| Maryland | $14,320 | $14,956 | +$636 |
| Utah | $14,518 | $15,175 | +$657 |
| Pennsylvania | $13,749 | $14,426 | +$677 |
| Wisconsin | $13,709 | $14,396 | +$687 |
| Montana | $13,901 | $14,590 | +$689 |
| North Dakota | $12,037 | $12,796 | +$759 |
| Delaware | $14,619 | $15,418 | +$799 |
| Maine | $14,123 | $14,938 | +$815 |
| Vermont | $13,471 | $14,335 | +$864 |
| Illinois | $14,652 | $15,519 | +$867 |
| North Carolina | $13,753 | $14,649 | +$896 |
| Ohio | $12,037 | $12,948 | +$911 |
| Alaska | $12,076 | $13,051 | +$975 |
| Connecticut | $13,621 | $14,638 | +$1,017 |
| Wyoming | $12,037 | $13,122 | +$1,085 |
| Minnesota | $14,305 | $15,405 | +$1,100 |
| New York | $14,451 | $15,641 | +$1,190 |
| Colorado | $13,782 | $15,198 | +$1,416 |
| Rhode Island | $13,511 | $14,990 | +$1,479 |
| New Hampshire | $12,037 | $13,538 | +$1,501 |
| California | $13,575 | $15,190 | +$1,615 |
| Tennessee | $12,037 | $13,653 | +$1,616 |
| Massachusetts | $14,605 | $16,224 | +$1,619 |
| Oregon | $16,342 | $17,964 | +$1,622 |
| Nevada | $12,191 | $13,826 | +$1,635 |
| Washington | $16,746 | $19,142 | +$2,396 |
| New Jersey | $13,570 | $16,032 | +$2,462 |
| Hawaii | $25,961 | $29,319 | +$3,358 |
Yearly federal and state tax and fees at $60,000 profit and $408,000 revenue, single filer, $1,800 a year of payroll and return costs.
Questions
Should a truck driver form an S corp?
At $60,000 of profit and a $42,000 salary, an LLC taxed as an S corp costs less than a sole proprietorship in 1 of 51 states. The biggest saving is in District of Columbia ($420 a year), and in Hawaii it costs $3,358 more.
What salary should a truck driver pay themselves?
The IRS expects pay in line with what the work would earn an employee. The median for employees in this job is $58,640 (BLS, May 2025). The figures here use that, capped at 70% of profit. More on reasonable salary.
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