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A Kiplinger report outlines how fuel, maintenance, taxes and insurance can cut into income from car-based side hustles. It suggests comparing those expenses with expected earnings and considering options that limit mileage, while noting that actual returns depend on the driver, vehicle and gig.
A Kiplinger report says using a car for a side hustle may be worthwhile only after drivers account for fuel, maintenance, taxes and insurance alongside their expected earnings. It highlights car sharing, vehicle advertising and short-distance errands as options that can limit added mileage, but provides no earnings data establishing which gig is most profitable.
The report cites NerdWallet’s estimate that drivers spend 11.7 cents per mile on vehicle repairs. That figure is an average, not a forecast for any particular car or driver. More work miles can bring forward tire replacements, brake work and other maintenance, while fuel use varies with the vehicle and route. Electric vehicles avoid oil changes, but the report says their weight and instant torque can contribute to faster tire wear; hybrids still need engine maintenance.
Taxes and insurance also affect the calculation. The report says side-hustle income is generally taxable, including earnings below $400; net self-employment earnings of at least $400 generally trigger self-employment tax, listed as 15.3% for Social Security and Medicare. It cites an IRS business-mileage deduction of 76 cents per mile for July through December 2026, compared with 72.5 cents for the first half of that year. The report advises checking with an insurer before using a personal vehicle for paid work, since a rideshare endorsement, business-use coverage or commercial policy may be needed.
Suggested alternatives to high-mileage rideshare work include peer-to-peer car rental with mileage limits, paid vehicle advertising, pet transport, local errands and renting a vehicle for film or advertising work. The report also describes personalized airport driving. These are options, not guaranteed sources of income: the report gives no typical rates, demand estimates or net-profit comparisons for them.
Costs Can Change the Payoff
The headline amount a gig pays is not the same as what a driver keeps. Extra mileage can add recurring costs through fuel, repairs, tires and depreciation, while insurance changes or tax obligations can further reduce take-home income. A gig that looks attractive before those expenses may produce a smaller net return.
AAA’s Your Driving Costs study, as cited in the report, estimates that owning and operating a new vehicle costs an average of $12,863 a year, or about $1,072 a month, at 15,000 miles annually over five years. That estimate includes depreciation, financing, fuel, insurance, maintenance and fees; it is a broad ownership-cost figure, not the extra cost of a side hustle or a measure of gig earnings. Readers should not treat it as a precise forecast for their own vehicle.
The practical question is whether additional income exceeds the added costs and time involved. Lower-mileage work may reduce vehicle wear, but that does not establish that it pays better: availability, platform fees, local demand and the vehicle’s condition all matter.
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Mileage Shapes the Cost Calculation
The report frames car-based work as one possible response for people seeking extra income, but it does not provide a labor-market analysis or evidence that a particular gig is broadly effective. Its focus is the decision drivers face: use a vehicle more intensively for paid trips, or seek work that uses the car less or rents it out.
The options have different cost profiles. Rideshare and delivery typically involve repeated driving, while car sharing transfers use to renters and may allow owners to set mileage limits, depending on platform terms. Advertising can pay for displaying a vehicle wrap, but the source does not specify compensation or eligibility. Pet transport and neighborhood errands may keep routes local, though demand and rates vary.
The figures cited in the report apply to stated measures and periods: NerdWallet’s repair cost is per mile, AAA’s estimate is an annual ownership cost under a 15,000-mile, five-year assumption, and the IRS mileage rates apply to specific 2026 periods. They are not interchangeable measures of profit.
““Doing your homework ahead of time can help you steer clear of any surprise expenses.””
— Kiplinger report
Actual Earnings Remain Unspecified
The report does not provide typical gross or net earnings for rideshare, delivery, car sharing, advertising or the other suggested gigs. It also does not quantify platform fees, added insurance premiums, fuel use, depreciation attributable to each activity, or the time required to find customers. The examples therefore cannot establish which option is most profitable.
Results will depend on location, demand, vehicle type and condition, mileage, policy terms and an individual’s tax circumstances. The cited cost figures are averages or general rules, not personalized estimates. The supplied material also gives no publication date, so its time-sensitive tax figures are presented as stated in the report, not as independently verified current guidance.
Check the Numbers Before Driving
Before accepting paid work, a driver can estimate likely trips and income, then subtract fuel, maintenance, platform charges and other added expenses. It is also sensible to ask the insurer whether the planned activity is covered and what endorsements or separate policies may be required. Keep mileage and expense records and check current tax rules or consult a qualified tax professional about deductions and filing obligations.
For anyone comparing gigs, the next useful step is to track actual earnings and costs over a defined period rather than relying on gross pay or national averages. The supplied report identifies no upcoming policy change, earnings study or platform milestone; whether a car-based hustle is worthwhile remains a calculation for each driver.
Key Questions
Can using a car for a side hustle be profitable?
It can generate extra income, but the report gives no typical net-earnings figures. Profit depends on income after fuel, repairs, insurance, taxes and other costs.
Which car-based gigs may involve less driving?
The report lists car sharing with mileage limits, vehicle advertising, pet transport, local errands and vehicle casting work. Availability, terms and earnings vary, and the source does not compare their net returns.
Does a personal auto policy cover paid driving?
Not necessarily. The report advises contacting the insurer before starting; some work may require a rideshare endorsement, business-use coverage or a commercial auto policy.
Do side-hustle earnings have to be reported for taxes?
The report says side-hustle income is generally taxable, including income below $400. It says net self-employment earnings of at least $400 generally trigger self-employment tax. Individual obligations can vary, so check current IRS guidance or consult a tax professional.
What costs should drivers track?
Track business mileage, fuel, maintenance, repairs, insurance changes and platform fees, then compare those expenses with income. The report also says eligible business mileage may qualify for a deduction at the IRS rate applicable to the relevant period.
Source: kiplinger.com
