DoorDash Taxes Demystified: A Complete 2025 Guide for All Dashers!

If you are busy making deliveries, you may have wondered, How do DoorDash taxes work? Or does DoorDash deduct taxes from my pay? 

Here’s the thing: DoorDash doesn’t deduct any taxes from your pay. You’re your own boss, self-employed, and you have to deal with your own taxes.  

It’s not as daunting as you might think, though! This simple DoorDash tax guide to 2025 will break down everything you need to know about forms, deductions, payments, and more. 

How DoorDash Taxes Work?

As a Dasher, you work for yourself, not as an employee. For that matter, no tax is deducted from your weekly paycheck.  

You have to pay your self-employment tax, which is comprised of the Social Security and Medicare, as well as the remainder of your federal and state income tax. 

Just as you would be if you were your own boss, you make money, pay bills, and pay taxes just like any small business owner. 

So, What Tax Forms Will You Receive?

By January 31, DoorDash will provide you with a Form 1099-NEC if you earned at least $600 in a year.  

Some drivers may receive a 1099-K based on their payment method, particularly if their earnings exceed certain thresholds.  

Even if you don’t receive a 1099, you still have to report your income. The IRS wants you to declare every dollar you earn, even if it is under $600. 

Now, it is necessary to remember the deadlines of tax timelines. Here’s what to remember:

• Forms 1099 are sent by January 31. 
• DoorDash quarterly tax payments will be due on April 15, June 15, September 15, and January 15 the following year. 
• Your last tax return is typically due on April 15. 

Remember these dates. It is better to pay a little bit all year than have the bill be too high in the month of April. 

How Much Should You Save on DoorDash Taxes?

The self-employment tax consists of the Social Security and Medicare, and it is approximately 15.3% of your net earnings.  

Additionally, you will also be subject to your typical income tax, as determined by your tax class and the state. 

For instance, if you earn $40,000 and have $5,000 in deductions, you will be subject to self-employment tax on $35,000. This is roughly $5,355 plus income tax. 

Most Dashers consider it a good practice to set aside approximately 20–30% of their earnings towards taxes.  

If you earn $1,000 in one week, set aside approximately $250. Saving money that way will often get you through the anxious times later. 

But why does paying quarterly matter? Unless you pay your DoorDash quarterly, you could be subject to penalties and underpayment interest.  

It is less complicated to pay quarterly than to have a sizable amount owed per year. 

DoorDash Tax Deductions and Write-Offs

Here is the best part! Tax write-offs! Because you are self-employed, you can deduct expenses that assist you in performing your work.  

Such deductions reduce your taxable income and allow you to keep more money in your pocket. 

Automobile and Distance Allowances

Your car is your highest expense. You can deduct actual vehicle costs (such as gas, maintenance, and insurance) or the standard mileage allowance (approximately 67 cents per mile in 2025).  

Most Dashers opt for mileage because it is faster and, in general, gives you a bigger deduction. You can use apps like Stride or Everlance to automatically track your miles. 

Materials and Tools

Everything you use on deliveries matters: heat bags, phone holders, chargers, uniforms, and the like. Hoard every receipt; you can amass these quickly! 

Phone

Since you will be bringing a phone with directions and communication capabilities, you can subtract some of the phone bill, data plan, and any delivery app costs. 

Other Routine Deductions

You can also deduct expenses like tolls, parking, car registration, car washes, medical coverage if you pay your own, and business or liability coverage. 

Multi-App or Mixed Income

Even when you drive for Instacart, Uber Eats, or Grubhub, you can still deduct shared expenses. Just evenly split these across per-platform, though.  

If you have, for example, 60% driving DoorDash and 40% driving Uber Eats, break down the same ratio on the gas and maintenance expenses. 

How to File Taxes on DoorDash

Reporting your DoorDash 1099 income is like owning your own small business. You will report what you made and what you paid on your tax return. 

Collect Your Documents

Gather all your 1099 forms, your DoorDash summary of income (which you can get through the app), receipts, records of your mileage, and any expense statements. 

Employ The Correct Forms 

DoorDash drivers in the United States report business income and expenses on Schedule C, and calculate the self-employment tax using Schedule SE. If quarterly payments are made, use Form 1040-ES. 

Choose A Tax Program Or A Professional 

You can do your taxes through programs like TurboTax Self-Employed or FreeTaxUSA, which have self-employment-specific versions.  

But if you work on multiple apps or have complicated deductions, it would be wise to bring in a professional who is knowledgeable about the gig economy. 

Keep Good Records

Keep back-up sets of your 1099s, mile logs, and receipts conveniently located at home at least three years. It will provide evidence should you be audited. 

DoorDash Taxes in the Real World Examples 

The DoorDash taxes work differently for the part-time and full-time dashers. In this section, I am going to give you the real-world examples of the DoorDash Taxes.

Part-Time Dasher

Alex works on weekends and makes $12,000 a year. After paying $3,000 for car expenses, he only pays self-employment tax on $ 6,000, which is about $ 1,200 in total. 

Full-Time Dasher 

He works full-time and brings home $45,000 after deducting the cost of $10,000. He pays tax on the amount of $35,000 and saves 25% of his income every week as a precaution. 

These examples show how deductions can greatly reduce your tax bill. 

State and Local Taxes

Besides federal income tax, all states require that you pay the state income tax on your DoorDash earnings.  

Some local businesses’ charges or licensing fees can be imposed by a few cities. Always check back on your state’s taxation site for information. 

That is different outside the United States, as the rule is the same there, too! You ensure that you have reported your income and your spending. 

What Are The DoorDash Tax Tools and Resources You Can Use? 

To manage their taxes, DoorDash drivers may rely on an automatic mileage tracking app, tax calculators, worksheets, and IRS, DoorDash & Stripe resources. 

Mileage Tracking Apps

Since DoorDash only tracks mileage during active deliveries, drivers must manually record other business-related miles.  

This includes driving to areas with a high concentration of customers or returning home. The following apps can help you automate this process:

Stride: The app is free, and it uses GPS to track your mileage automatically, helping you maximize your deductions. 

Everlance: It is an automatic mileage and expense tracker and a partner of DoorDash. It is an app that provides independent contractors with tax deductions. 

TripLog: TripLog is an automatic tracker that creates IRS-compliant reports and offers free unlimited mileage tracking. 

Tax Calculators & Worksheets

DoorDash Tax Calculator: Dashers can estimate their tax amount using a tax calculator provided by DoorDash on their website. 

Everlance Guides: Everlance provides local and online educational resources for independent contractors, covering various tax topics such as deductions and understanding the 1099 tax form. 

Official Tax Authority Links 

IRS Website: The Internal Revenue Service (IRS) is the main federal tax information source. 

Publication 463: The IRS mandates the maintenance of accurate mileage logs, as described in Publication 463. 

Schedule C: This is a form submitted along with Form 1040, used to report your DoorDash income and expenses as an independent contractor. 

State Tax Agencies: For state-specific tax obligations, you, the driver, should take the state tax authority as your next step. 

DoorDash And Stripe Tax Help

Stripe Express: If you earned $600 or more with DoorDash within a calendar year, Stripe, DoorDash’s payment partner, will send you a 1099-NEC form.  

To obtain the form, you will receive an email invitation to set up a Stripe Express account, where you can download your 1099 form. 

You can get your 1099 form by signing into the Stripe Express account at connect.stripe.com/express_login.

FAQs About DoorDash Taxes