How to Make Money Recycling Wood Pallets in 2026 (I Made $80 in 5 Hours)

One Saturday morning, I loaded my Silverado at a buying plaza 5 minutes from my home. Walmart. Schnucks. A couple of smaller shops. I requested the managers, loaded up 24 pallets, and drove them to the closest native dealer.

Mixture of Grade A and Grade B. Complete payout: $105. Fuel: $25.

Internet: $80 for about 5 hours of labor.

Not life-changing. However it’s actual. And I had zero expertise earlier than that morning.

Right here’s what I’ll cowl that different guides skip totally: actual pricing by pallet grade, precisely the place to seek out patrons earlier than you gather your first pallet, what to do with damaged pallets, and what you’ll owe the IRS, as a result of no person else talks about that half.

What you possibly can realistically make:

• Half-time collectors operating 2 to three days every week sometimes internet $220 to $370 after gasoline.
• Severe operators operating 4 to five days can internet $550 to $900. Your first run can be decrease. Count on $50 to $150 whilst you construct your routes.

That’s the trustworthy model.

Is Wooden Pallet Recycling Really Value Your Time?

Let’s be trustworthy.

That is bodily work. You’re loading and unloading heavy picket pallets. You want a truck. And your revenue relies upon lots on the place you reside.

However right here’s what makes recycling wooden pallets completely different from most facet hustles.

The provision is principally limitless. The U.S. makes use of round 2 billion pallets yearly. According to research from Virginia Tech, picket pallets get recycled or reused at a price of about 95%. Which means there’s a complete trade constructed round amassing, fixing, and redistributing them.

You’re only one piece of that system.

The concept is easy. You decide up pallets companies don’t need. You promote them to companies that do. The cash you make is the hole between “free” and what patrons pay you.

This works finest in the event you:

• Reside in or close to a metropolis with factories, warehouses, or a number of retail
• Have a pickup truck, or can lease one cheaply
• Can put in 5 to fifteen hours every week
• Are okay with bodily, outside work

It’s most likely not price your time if:

• You’re in a rural space with few close by companies
• You haven’t any automobile and no price range to lease one
• You’re anticipating large cash in week one

Give it 4 to eight weeks to construct up. That’s when the actual cash begins exhibiting up.

How A lot Cash Can You Make Recycling Wooden Pallets?

That is the place most articles mislead you.

They throw out numbers with zero math behind them. So let’s really break it down.

Pallet Costs by Grade

Not all pallets pay the identical. Situation is the whole lot.

The usual measurement is 48×40 inches. It’s known as a GMA pallet. That is the one patrons at all times need.

Different sizes are tougher to maneuver, so name your purchaser earlier than amassing something non-standard.

Regional costs can go a lot increased.

One reader in Arizona stated their purchaser pays $10 to $12 per pallet. California coastal areas and the Northeast pays 20-25% above nationwide averages. Rural states like Arkansas and Mississippi pay much less.

Verify Repackify’s price index for real-time transaction knowledge in your space, as lumber tariffs and provide chain changes are creating weekly value swings.

What You Can Realistically Make Per Week

These numbers mirror present 2026 pricing with Grade A pallets averaging $7 and Grade B averaging $4.75. Your precise outcomes rely closely on native provide sources and purchaser relationships.

I examined this some time again. I’ve a black Chevy Silverado truck, in order that helped. There’s an enormous buying plaza 5 minutes from me with Walmart, Schnucks, and some different native shops.

One Saturday morning, I went there and requested the shop managers. I collected 24 pallets. Then I discovered the closest native dealer close to me and bought the pallets identical day.

The combo was largely Grade B with a number of Grade A. Complete payout: $105. Fuel: $25. Internet: $80 for about 5 hours.

Notice: this was some time again when costs had been decrease.

Not enormous. However $80 for a Saturday morning with zero expertise?

That’s respectable cash for a number of hours of labor, no?

What You Have to Get Began

You don’t want a lot.

Right here’s the actual listing:

• A truck or trailer: That is the primary one. A normal pickup mattress holds 10 to fifteen pallets. A truck with excessive facet rails holds extra, which suggests fewer journeys and fewer gasoline.
• Cargo straps: Not non-compulsory. Pallets falling from a shifting automobile have brought about severe accidents. Strap each load.
• Thick work gloves: Leather-based, not backyard gloves. Splinters and nails are fixed. Funds round $15.
• A drill and nails: For fixing Grade B pallets to Grade A situation. I’ll clarify why this issues in a minute.

If you happen to already personal a truck, you can begin for underneath $50.

No truck? You may lease from Fetch or U-Haul. A pickup truck rental runs round $20 a day plus mileage and gasoline. If you happen to internet $120 on a Saturday run, a $40 rental nonetheless leaves you $80 forward.

Do You Want a License?

On the facet hustle stage, no.

You’re a sole proprietor. No particular enterprise registration required to start out.

If you happen to scale as much as a warehouse or rent folks, permits and insurance coverage kick in. However on the “Saturday truck run” stage, you’re high-quality.

The place to Discover Free Wooden Pallets

Right here’s what shocked me after I first appeared into this.

Discovering pallets is definitely the simple half.

Any enterprise that receives giant shipments has pallets stacking up. Most of them haven’t any system for coping with empties. They pile up. They take house. They change into an issue.

You’re fixing their downside whereas fixing yours.

The Greatest Enterprise Varieties to Method

These are your finest sources:

• Manufacturing and distribution corporations: highest quantity, most constant provide
• Grocery shops and supermarkets: day by day deliveries, fixed turnover
• House enchancment shops (House Depot, Lowe’s): giant pallets, frequent restocking
• Furnishings retailers: usually have outsized pallets
• Backyard facilities and nurseries: nice in spring and summer time
• Eating places and meals distributors: decrease quantity per cease however widespread
• Comfort shops: what bigger pallet corporations need assistance protecting

strategy: go in particular person. Ask for the supervisor. Inform them you’d wish to take their pallets off their palms on an everyday schedule, at no cost. Supply to come back on a selected day every week.

Most managers say sure inside 30 seconds. You’re fixing a storage downside they didn’t know tips on how to repair.

Professional tip: ask how usually they get new pallets. That tells you pickup frequency and whether or not the account is price including to your common route.

On-line Sources

• Craigslist “Free” part: search your metropolis for “pallets.” New listings go up day by day.
• Fb Market: search “free pallets” or “wooden pallets.” Very energetic in most metro areas.
• Repalletize.com: free market the place companies listing extra pallets. Free to enroll.

Try my information for an inventory of the best places to find free pallets near you.

One Rule You Can’t Ignore

At all times ask earlier than you are taking.

Pallets sitting outdoors a enterprise are nonetheless that enterprise’s property. Taking them with out permission can create authorized issues.

Additionally by no means take blue CHEP pallets or pink PECO pallets. These belong to pallet pooling corporations and are tracked. Taking them is theft.

The companies that wish to do away with pallets will inform you sure. Takes 30 seconds to ask.

Learn Pallet Stamps

This part might save your well being.

Each pallet utilized in worldwide commerce carries an IPPC stamp. That stamp tells you precisely how the pallet was handled earlier than it entered the availability chain.

Right here’s what the codes imply:

HT pallets are the gold commonplace. Protected to promote, secure to make use of for furnishings or backyard tasks. Consumers want them.

MB pallets are those to keep away from. Don’t burn them. Don’t use them in vegetable gardens. Don’t construct furnishings from them for indoor use. The chemical residue is severe. Some patrons gained’t settle for them in any respect.

If a pallet has no legible stamp, assume you don’t know its historical past and value it decrease.

This one piece of information places you forward of most new collectors.

The place to Promote Your Wooden Pallets for the Most Cash

Right here’s the factor no person tells you.

Discovering pallets is straightforward. Discovering patrons is the arduous half.

I’ve revealed articles about pallet recycling earlier than. The most typical query within the feedback wasn’t “the place do I discover pallets.” It was “the place do I discover patrons in my space.” Folks from Florida, South Carolina, New Jersey, Vegas, all asking the identical factor.

So right here’s the sensible transfer: discover your purchaser earlier than you gather your first pallet.

Pallet Brokers (Your Most Dependable Consumers)

Pallet brokers are middlemen. They purchase from collectors such as you, repair and kind the pallets, then resell to producers. They’re constant, they pay on supply (normally money), they usually’re your best possibility.

Nationwide dealer networks:

• Kamps Pallets: over 400 places throughout the U.S., use their location finder to seek out one close to you
• 48 Forty Solutions: 73 company-owned crops nationwide, name 1-877-779-8577
• Wiley Pallet: regional protection in lots of metro areas

To seek out extra brokers in your space, use the North American Pallet Recycling Network. It’s a free listing that matches pallet sellers with patrons.

Additionally examine the NWPCA directory. It lists member corporations that purchase and promote pallets.

Name a number of brokers, inform them what you possibly can provide, and ask what they pay.

Most brokers pay on supply so that you don’t have to attend round. You simply drop off the pallets and receives a commission immediately.

Promoting Direct to Producers

Chopping out the dealer means more cash per pallet.

As an alternative of $3 to $4 from a dealer for Grade B, a producer may pay $5 to $7 for Grade A. However this requires constant quantity, reliability, and a few gross sales work upfront.

Begin with brokers. Show you possibly can provide constantly. Then strategy producers instantly as you scale.

On-line Marketplaces

• Repalletize: free to enroll, good for normal and non-standard sizes
• Verde Dealer: one other platform for purchasing and promoting used pallets
• Fb Market and Craigslist: nice for promoting to people. Larger per-pallet costs, decrease quantity.

Restore Pallets and Improve What You Earn

That is principally free cash.

Upgrading a pallet from Grade B to Grade A takes about 5 minutes and possibly $0.25 in nails. If Grade B pays $4 and Grade A pays $6, that’s $2 additional per pallet. Try this to twenty pallets and also you simply made an additional $40 with out amassing a single additional pallet.

Right here’s the factor about pallet wooden. Most of it’s hard-seasoned oak. You may’t simply hammer nails straight in. The wooden splits. Drill pilot holes first, then nail or screw.

What Grade B must change into Grade A:

• Substitute any lacking or cracked boards
• Hammer down any nails poking up
• Verify the stringers (the facet rails). A critically cracked stringer is tougher to repair.

When to not trouble: if a pallet wants three or extra board replacements, do the maths. At 10 minutes of labor, the cash could not justify it. Promote it as a core ($1.50) or carry it to a mulch operation.

Lisa from Temecula, California commented on my authentic article. She runs an animal rescue and sells pallets as a facet income stream at $4 every. She strikes lots of per 30 days. Her perception: patrons who know you’ll carry constant, sorted stock can pay extra reliably than patrons choosing by a combined load.

Sorting and fundamental restore builds your fame quick.

The Upcycling Path

Wholesale flipping is about quantity. Upcycling is about margin.

As an alternative of incomes $2 to $6 per complete pallet, you flip one pallet into one thing price $40 to $150.

What Really Sells

From the analysis I’ve achieved and in addition trying on the present traits, these are the sort of stuff that sell consistently on Etsy and Fb Market:

• Outside furnishings: espresso tables, benches, Adirondack chairs. Largest demand, particularly spring by fall.
• Wine racks and bottle holders: fast to construct, folks love them
• Ornamental wall panels: rustic residence decor stays widespread
• Birdhouses and backyard planters: simple entry-level builds
• Customized picket indicators: add a wooden burner and the worth doubles
• Storage cabinets and crates: regular demand year-round

The place to Promote What You Make

Fb Market works finest for cumbersome furnishings. No delivery, native money pickup, quick transactions.

Etsy is healthier for smaller, shippable gadgets. Takes time to construct, however established outlets could make actual cash. New Etsy sellers common round $2,200 in income their first yr. Outlets with two or extra years usually earn far more.

Native craft gala’s and farmers markets provide you with direct money and speedy buyer suggestions. Good for testing what sells in your space.

Consignment in native residence decor outlets is much less work than managing your personal store. Value exploring when you’ve got a great native market.

Which Path Makes Extra Cash?

Right here’s the actual comparability.

• Wholesale flipping: 50 pallets bought at $3 common = $150. Takes about 2 hours of amassing and delivering.
• Upcycling: 50 pallets became 5 espresso tables at $75 every = $375. Takes roughly 15 hours together with constructing, sanding, and promoting.

The maths is determined by the way you worth your time.

Considered one of our readers (Carla from Portland) who commented on the unique information stated she doesn’t trouble with wholesale in any respect. She collects free pallets, builds outside furnishings in her storage, and sells on Fb Market. She strikes 6 to eight items a month at $65 to $95 every. That’s $390 to $760 a month for roughly 20 to 25 hours of labor. Higher hourly price than wholesale, however slower and it wants extra space and ability.

Greatest technique: begin with wholesale to get money flowing and be taught the pallet market. Add upcycling later as a higher-margin second stream as soon as you recognize which pallets are price protecting.

Beginning With out a Truck

Not having a truck is the most typical cause folks don’t begin.

It’s additionally a solvable downside.

• Lease from U-Haul: Pickup truck leases sometimes run round $19.95 per day base, plus mileage and gasoline. Do the maths earlier than you guide. If you happen to anticipate to internet $120 on a Saturday run, a $40 to $50 rental nonetheless leaves you $70 to $80 forward.
• Lease from House Depot or Lowe’s: Each shops lease pickup vans by the hour. Normally round $19 for the primary 75 minutes, then cheaper per hour after that. Good for brief native runs.
• Borrow from somebody: Supply whoever lends you their truck a minimize of the day’s earnings. 10 to fifteen% is truthful and retains the connection stable.

The maths on renting solely works in the event you’re shifting sufficient pallets to cowl the rental value and nonetheless revenue. In your first run, you won’t break even. That’s high-quality. Deal with week one as paid market analysis so you possibly can be taught which companies have good provide and which patrons pay the very best charges.

When you’re constantly shifting 80 to 100 pallets every week, shopping for a used truck begins to make monetary sense. Till then, lease.

One sensible be aware: a truck with a topper or excessive facet rails suits far more pallets per journey. Fewer journeys means much less gasoline and higher margins. Value factoring into your rental selection.

Taxes on Pallet Revenue

Let’s be actual about this.

Lots of people doing pallet runs receives a commission in money. Similar-day, underneath the desk, no paperwork. That’s simply how a number of brokers work on the small collector stage.

I’m not right here to inform you what to do. However right here’s what it is advisable to know in the event you’re doing this as greater than occasional pocket cash.

When the IRS Really Cares

If you happen to’re making a number of hundred bucks right here and there on random Saturdays, realistically no person’s monitoring that.

However in the event you’re doing this commonly and the cash begins including up, or if you wish to flip this into an actual facet enterprise, the tax stuff issues.

The IRS says any internet self-employment revenue over $400 per yr requires you to file Schedule C along with your tax return. That’s the shape for enterprise revenue.

You additionally owe self-employment tax of 15.3% on high of normal revenue tax. That’s 12.4% for Social Safety and a pair of.9% for Medicare. You’re paying each side because you don’t have an employer.

Your state may tax self-employment revenue individually, so examine your state’s guidelines

David, one of many readers who commented on my authentic pallet information, discovered this the arduous method. He netted $9,200 his first yr doing pallet runs. Thought money meant tax-free. Come April, he owed $1,407 in self-employment tax plus $612 in federal revenue tax. A $2,019 invoice he wasn’t prepared for.

He additionally missed monitoring his miles. That value him roughly $4,000 in deductions he might have taken.

If you happen to’re making actual cash at this, discuss to a tax preparer. A one-time session runs $100 to $200 and may prevent far more than that.

The Deductions That Really Assist

If you happen to do report the revenue, you get to deduct each legit enterprise expense.

The most important one is mileage. The IRS commonplace price is 72.5 cents per mile for 2026 (confirm present price at irs.gov for the present yr, earlier than submitting). If you happen to drive 200 miles every week on pallet runs, that’s $145 per week in deductions. Over a yr, that’s virtually $7,540.

Observe each enterprise mile. Free apps like MileIQ work high-quality, or simply maintain a easy be aware in your cellphone.

Different stuff you possibly can deduct:

• Nails, screws, alternative boards
• Gloves and security gear
• Enterprise use share of your cellphone
• Fuel (in the event you’re not utilizing the mileage deduction)
• Storage unit rental in the event you’re protecting stock

Preserve receipts for the whole lot. A fundamental spreadsheet is sufficient.

The Backside Line

If you happen to’re doing this casually for beer cash, you’re most likely high-quality.

If you happen to’re doing this constantly and making actual cash, or if you wish to scale it into an precise enterprise, put aside 25 to 30% of what you make and deal with the taxes correctly. It protects you and allows you to take the deductions that really decrease what you owe.

Extra data on the IRS Self-Employed Tax Center.

Execs and Cons of Pallet Recycling

Right here’s what’s good and what’s not so good about this facet hustle.

Incessantly Requested Questions

How a lot are you able to realistically make recycling wooden pallets?

Half-time collectors shifting 100 to 150 pallets every week sometimes internet $220 to $370 after gasoline. Severe operators operating 200 to 300 pallets every week can internet $550 to $900. Week one can be decrease than these numbers whilst you construct your provide and purchaser relationships. Count on $50 to $150 internet in your first run.

Is it authorized to take pallets from behind shops?

Not with out asking first. Pallets sitting outdoors a enterprise nonetheless belong to that enterprise. At all times get permission from the supervisor. Most will say sure. By no means take blue CHEP pallets or pink PECO pallets. These belong to pallet pooling corporations and taking them can get you in authorized hassle.

What pallets ought to I keep away from?

Search for the HT (Warmth Handled) stamp. That’s what you need. Protected, in demand, and patrons want them. Keep away from MB (Methyl Bromide) pallets utterly. They’ve been handled with poisonous pesticide. Don’t burn them, don’t construct furnishings from them, and don’t use them in vegetable gardens. Many patrons gained’t take them.

Do I want a truck to start out?

A truck makes the whole lot method simpler. However you can begin by renting from U-Haul or House Depot. Do the maths earlier than you guide. Rental value plus gasoline must be lower than what you anticipate to internet on the run. When you’re constantly shifting 80+ pallets every week, shopping for a used truck begins to make monetary sense.

The place can I discover pallet patrons close to me?

Use the North American Pallet Recycling Network to seek out pallet brokers by zip code. Additionally examine Repalletize.com (free to listing and promote). Name native manufacturing corporations instantly. Fb Market works for promoting to people who need pallets for DIY tasks.

Do I’ve to pay taxes on pallet revenue?

Technically, in the event you internet greater than $400 per yr from self-employment, you’re purported to file Schedule C along with your federal return. You’d additionally owe self-employment tax (15.3%) on internet revenue. The upside: mileage, repairs, provides, and tools are all deductible. If you happen to’re doing this commonly and making actual cash, put aside 25 to 30% and deal with it correctly.

What measurement pallets are price probably the most?

The 48×40 inch GMA pallet. It’s the trade commonplace. Most native patrons will at all times settle for it and pay the very best charges. Sizes like 48×48 and 42×42 have some worth, however name your purchaser earlier than amassing them. Non-standard sizes may be arduous to maneuver domestically.

Can pallet recycling change into a full-time enterprise?

Sure. Folks do it. However getting there requires a number of provide accounts, direct producer relationships, constant quantity, dependable transport, and finally some space for storing. The bounce from facet hustle to full-time normally means shifting from dealer gross sales to direct purchaser relationships and operating your personal route operation.

Is Wooden Pallet Recycling Proper for You?

I’ve revealed guides about pallet recycling earlier than on MoneyPantry. Since then, I’ve heard from readers in Florida, New Jersey, Arizona, California, and throughout.

Some are struggling to seek out native patrons. Some are quietly making severe cash with established routes.

The hole between these two outcomes virtually at all times comes down to 1 factor: discovering your purchaser earlier than you gather your first pallet.

That’s the transfer.

Spend half-hour this week figuring out three or 4 native companies which may provide pallets. Then discover one native dealer or purchaser utilizing the North American Pallet Recycling Community. Then do one check run.

If you happen to make $50 to $100 in your first half-day, the mannequin works in your market. Scale from there.

It’s not glamorous. It’s not passive. However it’s actual, repeatable revenue. And there are pallets ready behind a enterprise close to you proper now.

Have you ever tried promoting pallets in your space? What did your first run appear to be? Please depart a remark blow. I’d love to listen to about your private expertise of promoting or recycling pallets for cash.