What is a kit fee?
A kit fee is a daily payment a production pays a crew member for the use of their personally owned equipment. It is paid on top of the crew member's day rate and is specifically compensation for the gear, not the labor.
Think of a crew member who owns equipment as two separate businesses stapled together: a person who works a shoot (paid a day rate for labor) and a mini rental house on wheels (paid a kit fee for the gear). The day rate rewards the skill. The kit fee covers the cost of ownership: depreciation, maintenance, insurance, replacement, and the opportunity cost of having your gear tied up on that production instead of earning elsewhere.
Kit fees go by different names depending on the production. You might see them called an equipment fee, a gear rental, a box rental, a truck rental (for gaffers and grips), or just a kit rate. They all describe the same thing: money paid to a crew member for the use of their gear on set.
Why productions pay kit fees (and why you should charge one)
A production has two options when they need equipment: rent it from a rental house, or pay a crew member who already owns it. Paying a kit fee is almost always cheaper and easier than renting separately. The gear arrives with someone who knows how to use it, insurance is usually already in place, and nobody has to drive to a rental house at 6 AM to pick up a sound bag.
This is also why not charging a kit fee is a mistake. If you bring $30,000 of gear onto a set and charge nothing for it, you are subsidizing the production's budget with your own capital. Your sensor wears. Your cables fray. Your batteries cycle. Your insurance premium renews. Charging a fair kit fee is how you stay in business as an owner-operator.
Most producers expect a kit fee. If you show up with a full package and don't list one on your deal memo, the production will happily save the money. It is your job to know what your kit is worth and ask for it.
How to calculate a kit fee that covers your costs
There are three ways to arrive at a kit fee. Most working crew members use some blend of all three.
The 1% to 3% rule
The most common starting point: charge between 1% and 3% of your kit's replacement cost per shoot day. A $20,000 camera package at 2% is $400 per day. A $100,000 grip truck at 1.5% is $1,500. This is the same math rental houses use. They target roughly 1 to 2% daily because they rent the gear out constantly. A crew member working 10 to 20 shoot days a month has less utilization, so the higher end of the range makes sense.
The payback window
Decide how quickly you want a piece of gear to pay for itself, then work backwards. If you buy a $6,000 lens and want it paid off in 18 months at an average of 12 shoot days per month, that is 216 shoot days. $6,000 divided by 216 is about $28 per shoot day from that lens alone. Do this for every item and sum them.
The rental house comparable
Look up what a rental house near you charges to rent your exact package. Then charge 50 to 75% of that as a kit fee. You are undercutting the rental house because you also save the production the paperwork, delivery, and damage risk. If a RED package rents for $800 per day, $500 to $600 as a kit fee is reasonable, and the production still comes out ahead.
Kit fee rates by role
Ranges below are daily rates observed across commercial, documentary, and narrative work in the US in 2026. Union rates may be higher and are typically set by the relevant local or through the deal memo.
| Role | Typical Kit | Daily Range |
|---|---|---|
| Camera Operator | Body + 2-3 lenses + support | $400 – $900 |
| 1st AC | Follow focus, monitors, radios, cases | $200 – $500 |
| DIT | Cart, monitors, drives, color calibration | $500 – $1200 |
| Sound Mixer | Recorder, lavs, boom, wireless | $500 – $900 |
| Gaffer | Truck of lighting, distro, cable | $750 – $1500 |
| Key Grip | Truck of grip, rigging, dollies | $750 – $1500 |
| Drone Operator | Drone, controller, FPV, ND filters | $600 – $1200 |
| Gimbal Operator | Ronin, easyrig, vest, monitors | $500 – $1000 |
| Hair / Makeup | Kit, station, products | $100 – $350 |
| Wardrobe | Steamer, iron, sewing, stock pieces | $100 – $300 |
These are starting points, not ceilings. A camera operator with a Sony Venice 2, an anamorphic lens set, and full support can justify well above $1,500 per day. A gaffer with an HMI package and a genny can hit $2,500. Adjust up for specialty gear and specialty markets (NYC and LA command more than most secondary markets).
Kit fee vs. rental fee: what's different
A kit fee and a rental fee look similar on an invoice but the context and paperwork are different.
| Kit Fee | Rental Fee | |
|---|---|---|
| Who operates it | The owner (a crew member on set) | Whoever the production assigns |
| Paperwork | Deal memo line item or invoice | Rental agreement + COI |
| Insurance | Production adds you as additional insured | Renter provides COI naming owner |
| Payment path | Payroll or AP | Accounts payable |
| Typical duration | Per shoot day worked | Days in possession (often billed differently) |
If you are a Sharegrid owner, you know the rental side already. If you also work shoots, the kit fee side is worth the same attention. The economics are identical: your gear is earning.
Taxes: how kit fees actually get reported
Kit fees are income. How you report them depends on how you are paid.
As a 1099 contractor
The production includes the kit fee in the total on your 1099-NEC. You report the total on Schedule C and deduct against it. Typical deductions:
- Depreciation on your gear (straight-line over 5 or 7 years, or accelerated via Section 179 / bonus depreciation)
- Insurance premiums on your equipment policy
- Maintenance and repair (sensor cleanings, firmware updates, relamping lights, tire rotations on the truck)
- Consumables you replace regularly (batteries, media cards, cables, bulbs, gels)
- Storage if you rent a unit or allocate home square footage
- Mileage or actual vehicle expenses for driving gear to set
A camera operator pulling in $50,000 in kit fees with $15,000 in legitimate deductions only pays tax on $35,000. Tracking those deductions accurately is how you keep more of what you earn.
As a W-2 employee
W-2 situations are trickier. Some productions list the kit fee as a non-taxable reimbursement on your pay stub, which requires you to substantiate the expense. Others include it in your taxable wages. If it is in your wages, you generally cannot deduct unreimbursed employee expenses on your federal return (the 2017 Tax Cuts and Jobs Act eliminated that deduction through at least 2025). Talk to an accountant who works with entertainment industry clients. This is one of the most commonly botched items on crew tax returns.
Section 179 and the “buy gear to lower my taxes” trap
Section 179 lets you expense the full cost of qualifying equipment in the year you place it in service, rather than depreciating over years. It is powerful but not magic. You cannot deduct more than your schedule C profit. And buying gear you do not need solely to reduce taxes is almost always a net negative. Use Section 179 when you were going to buy the gear anyway and want the deduction front-loaded.
Sample invoice language for kit fees
When you send a kit fee invoice (or add the line to a timecard), clarity helps. Productions pay faster when the paperwork is clean. A usable template:
Two details that matter: list the actual gear, and specify “per shoot day” (not “per day”, which can be interpreted to include travel and hold days). Productions rarely dispute a clean invoice.
Negotiating your kit fee
Kit fees are almost always negotiable, especially on non-union jobs. A few tactics that work:
- Ask for the kit fee before the day rate is locked. Once labor is agreed, the production treats the gear conversation as a separate ask. Bundle it into the initial negotiation.
- Itemize on request. If a producer pushes back, offer to break down what the kit contains. Most pushback comes from not knowing what they are paying for.
- Have a minimum and a walk-away number. If your true cost is $400 per day, do not agree to $250 because you want the gig. You are losing money on every shoot day.
- Offer tiered packages. “$400 with the base kit, $650 with the full anamorphic set, $800 with the gimbal package.” Productions often upgrade when given options.
Why tracking per-item earnings matters
A production pays one lump kit fee. But your kit has dozens of pieces. At the end of the year, you know what your kit earned in total, but you have no idea which pieces are profitable. That blind spot is expensive.
Most crew members have one or two items dragging down their kit: a lens that hasn't been used in eight months, a monitor that broke and got replaced with a better one, a mic that barely justifies its insurance premium. Without per-item tracking, these items just ride along and slowly erode your margins.
The fix is attribution. Every shoot, split your kit fee across the items that were actually used on that shoot. Over a year, you can see: this lens paid for itself in six months, that one hasn't broken even in two years. You keep what works and sell what doesn't. You buy more of what earns and stop buying what doesn't.
This is exactly what Rental IQ is built for. You log each shoot, specify which gear was used, and the platform handles the attribution math. Try the camera ROI calculator to see how a single piece of gear performs at your typical rate.
When to raise your kit fee
Your kit fee is not set once and forever. Revisit it at least annually. Raise it when:
- You have booked solid for the last six months at your current rate
- You have added significant new gear (a second body, an anamorphic set, a new gimbal)
- Insurance premiums have gone up (they usually do)
- Your market has shifted (you moved, or local rates have risen)
- You are declining work because jobs at your current rate don't cover costs
A 10 to 15% increase every 18 to 24 months is common among working crew members who track their numbers. The producers you've worked with rarely push back if the increase is reasonable and you have the gear to justify it.
Frequently asked questions
What is a kit fee?
A kit fee is an additional daily payment a production pays a crew member for the use of their personally owned equipment on set. It is separate from the crew member's day rate, which is payment for their labor. The kit fee covers ownership costs: depreciation, maintenance, insurance, and the opportunity cost of using your gear on someone else's shoot.
How much should I charge for a kit fee?
Most kit fees fall between $100 and $1,500 per day depending on role and gear value. A typical camera operator kit (body, a few lenses, support) runs $400 to $900 per day. A gaffer or key grip with a truck of lighting and grip might charge $750 to $1,500. Sound mixers with a full bag run $500 to $900. The rule of thumb: charge 1 to 3 percent of your kit's replacement cost per shoot day.
What's the difference between a kit fee and a rental fee?
A kit fee is paid to a crew member who is also working on the shoot, for the use of their gear. A rental fee is paid to an equipment rental house or a Sharegrid owner who is not working the shoot. Kit fees are usually simpler paperwork (added to a timecard or invoice) and the gear owner is on set operating it. Rental fees involve a rental agreement, often a certificate of insurance, and sometimes delivery or pickup.
Is a kit fee taxable income?
Yes. Kit fees are reportable income. If you are paid as a W-2 employee, the fee may appear on your pay stub, usually as a non-taxable reimbursement when substantiated, or as taxable wages. If you are a 1099 contractor, the production will include the fee in your 1099-NEC and you report it on Schedule C. Either way, you can deduct depreciation, maintenance, insurance, and other costs against that income, often using Section 179 to accelerate the deduction.
Do I need a separate invoice for my kit fee?
It depends on how the production pays. Many productions add the kit fee to your timecard as a flat daily line item. Others require a separate invoice, especially for larger kits or multi-day shoots. A clear invoice helps at tax time. List the production, dates, daily kit fee rate, and a short description of the equipment provided.
Should I charge a kit fee when I'm salaried?
Yes, if you bring your own gear. Your salary pays for your time. It does not pay for the wear on your $20,000 camera package. Most union and non-union salaried positions that expect personal equipment have a negotiated kit rental rate built into the deal memo. If yours does not, ask for one.
How do I know if my kit fee is too low?
Track your per-item earnings over a year. If the kit fees you collect for a specific piece of gear do not exceed depreciation, maintenance, and insurance on that item, you are losing money. Most crew members discover one or two items dragging their kit down once they have real numbers.
Can I charge a higher kit fee for specialty gear?
Yes. Specialty items command higher fees because productions cannot easily source them elsewhere. A full anamorphic set, a Ronin 4D, a high speed camera, or a RED with a media package can justify 50 to 150 percent above standard kit rates. If the production could rent the same package for $800 per day from a rental house, you can usually charge $500 to $700 as a kit fee, because you save them the insurance, delivery, and runner hassle.
Do kit fees go through payroll or accounts payable?
It varies by production. Commercial and union productions typically run kit fees through payroll to keep them tied to the crew deal memo. Independent and documentary productions often run them through accounts payable against a W-9 or invoice. Ask the production accountant on hire. It matters for tax paperwork at year end.
What should my kit fee cover?
At minimum: depreciation, routine maintenance, consumables (batteries, cards, cables, gels), insurance, and the opportunity cost of not renting the gear out elsewhere. It should not cover your labor (that is your day rate), expendables the production uses up (charge those separately), or damage (the production's insurance should handle that under a certificate of insurance naming you as additionally insured).
Keep reading
The guides below go deeper on specific parts of the kit fee conversation, from pricing to tax treatment to deciding what gear to buy next.