DoorDash Taxes: Complete Guide for Dashers (2026)

DoorDash Taxes Guide

Dashing for DoorDash is a great way to earn flexible income, but it comes with a tax responsibility most new drivers underestimate. Unlike a traditional job where your employer withholds taxes from every paycheck, DoorDash treats you as an independent contractor -- meaning you are entirely responsible for calculating and paying your own taxes. This guide walks you through every tax obligation you face as a Dasher in 2026, from understanding your 1099-NEC to claiming every deduction you are legally entitled to.

Understanding your tax situation upfront saves you from an unpleasant surprise in April. The IRS expects you to pay taxes not just once a year but quarterly throughout the year, and failing to do so can result in underpayment penalties on top of the tax bill itself.

Understanding Your DoorDash 1099-NEC

DoorDash sends a 1099-NEC form to every Dasher who earns $600 or more during the calendar year. The 1099-NEC reports your gross earnings -- the total amount DoorDash paid you before any expenses are subtracted. This form typically arrives by January 31 of the following year, either by mail or through your Dasher portal.

It is important to understand that the 1099-NEC does not represent your taxable profit -- it represents your gross revenue. Your actual taxable income is calculated by subtracting your legitimate business expenses from that gross figure. If DoorDash paid you $28,000 in 2026 but you drove 18,000 miles and had $2,400 in phone and equipment costs, your net profit -- the number that actually gets taxed -- could be significantly lower.

You will also receive a 1099-K if you process more than $5,000 in payments through third-party networks, though for most Dashers the 1099-NEC is the primary form. Keep copies of both documents along with all your expense records.

If you earned less than $600 from DoorDash, they are not required to send you a 1099, but you are still legally required to report that income on your tax return. The IRS requires you to report all self-employment income regardless of whether you receive a form.

Self-Employment Tax: The 15.3% That Catches New Dashers Off Guard

The single biggest tax shock for first-time Dashers is self-employment tax, which runs at 15.3% of your net self-employment income. This covers Social Security (12.4%) and Medicare (2.9%). Employees split this cost with their employer, each paying 7.65%. As a self-employed contractor, you pay both halves.

On $25,000 of net Dasher income, your self-employment tax bill is approximately $3,825 before any income tax. Then add federal income tax on top of that, calculated at your marginal rate based on your total household income. For a single filer earning $25,000 from DoorDash with no other income, the combined tax burden (self-employment plus income tax) typically lands between 25% and 30% of net profit.

The good news: you can deduct half of your self-employment tax when calculating your adjusted gross income on Form 1040. This deduction does not eliminate the tax but meaningfully reduces the income that gets taxed at your income tax rate.

Key Tax Deductions for DoorDash Drivers

Reducing your taxable profit is the most powerful lever you have over your DoorDash tax bill. Every dollar of legitimate deduction you claim reduces both your income tax and your self-employment tax. Here are the deductions that matter most:

Mileage deduction -- This is the biggest deduction available to most Dashers. For 2026, the IRS standard mileage rate is 70 cents per mile (confirm the current rate at irs.gov). Track every mile you drive while on an active delivery, driving to a restaurant after accepting an order, and returning from a delivery to wait for the next one. Using a mileage-tracking app like MileIQ or Stride makes this effortless and creates an audit-proof log. At 70 cents per mile, 15,000 annual delivery miles generates a $10,500 deduction.

Phone and data plan -- Your smartphone is your primary business tool. You can deduct the percentage of your phone bill attributable to your DoorDash work. If you use your phone 60% for dashing, deduct 60% of your monthly bill and device cost.

Insulated delivery bags and equipment -- Bags, phone mounts, car chargers, and any equipment you purchase specifically for deliveries are 100% deductible.

Health insurance premiums -- If you pay for your own health insurance and are not eligible for employer-sponsored coverage through a spouse, you can deduct 100% of your premiums as an above-the-line deduction.

Use Eonebill's free expense tracker to log these costs throughout the year so nothing slips through the cracks at tax time.

Quarterly Estimated Tax Payments

Because DoorDash does not withhold taxes from your earnings, you are required to pay estimated taxes four times per year if you expect to owe $1,000 or more when you file. Missing these payments results in underpayment penalties, which the IRS calculates based on the amount you were short and how long you were late.

The 2026 quarterly estimated tax due dates are: April 15 (for income earned January-March), June 16 (April-May), September 15 (June-August), and January 15, 2027 (September-December). You pay using IRS Form 1040-ES, either by mailing a check or paying online at IRS Direct Pay.

A practical rule of thumb: set aside 25-30% of every DoorDash payment into a separate savings account designated for taxes. When a quarterly payment is due, transfer the amount you owe. This prevents the painful experience of spending money you need for taxes.

Filing Your DoorDash Taxes

You report your DoorDash income and expenses on Schedule C (Profit or Loss From Business), which attaches to your Form 1040. Schedule C is where you list your gross income from the 1099-NEC, subtract all your deductions, and arrive at your net profit. That net profit figure flows to Schedule SE (Self-Employment Tax) and then to your 1040.

For most Dashers, tax software handles the forms automatically -- you enter your 1099 income and expense totals, and the software calculates everything and populates the correct schedules. If your situation is complicated (multiple gig jobs, a home office, mixed-use vehicle), a CPA who works with gig workers can be worth the cost.

See the 1099 tax guide for freelancers for a deeper walkthrough of self-employed filing. You can also use our 1099 tax calculator to estimate your tax liability before filing.

Reducing Your 2026 Tax Bill Proactively

The most effective tax strategy is year-round record-keeping combined with proactive deduction planning. Open a dedicated bank account for your Dasher income and expenses. Use an invoicing or financial management tool like Eonebill to categorize your income and generate financial summaries that make tax time straightforward.

Consider opening a SEP-IRA or Solo 401(k) if you earn meaningful self-employment income -- contributions reduce your taxable income dollar for dollar, and the limits are far higher than a standard IRA. In 2026, a SEP-IRA allows contributions up to 25% of net self-employment income, capped at $69,000.

With proper deduction tracking and quarterly payments, most Dashers find their effective tax rate is much more manageable than the headline numbers suggest. The key is treating your gig work like a business from day one.

Common Tax Mistakes DoorDash Drivers Make

Mistake 1: Not tracking miles from the first day

The mileage deduction is worth 70 cents per mile in 2026 -- but only for miles you can document. Many new Dashers do not start tracking mileage until they realize they need it for taxes, then try to reconstruct months of driving from memory. Start a mileage tracking app from your first shift and let it run automatically.

Mistake 2: Forgetting about miles driven between orders

Many Dashers only log miles while a customer is in the app, ignoring the "deadhead" miles driven from drop-off back to a hot zone waiting for the next order. These miles are deductible as long as you were actively working and waiting for an order. Ask any seasoned Dasher: the cumulative miles add up to thousands of dollars in deductions annually.

Mistake 3: Underestimating self-employment tax

Many first-year Dashers budget for income tax but forget about the 15.3% self-employment tax on top of it. If you set aside only 15-20% of your earnings, you will be short come tax time. The 25-30% rule of thumb exists for this reason.

Mistake 4: Missing quarterly payment deadlines

The underpayment penalty is calculated based on how much you owed and how long you were late -- not just whether you filed on time. Even if you pay everything when you file in April, you may still owe a penalty for the four quarters during which you should have been paying. Use IRS Direct Pay to submit quarterly payments on time.

Mistake 5: Not deducting the phone they use constantly for work

Your phone is essential to your DoorDash business -- navigation, the app, communication with support. If you use it 70% for dashing, 70% of your annual phone cost is deductible. A $1,200 annual phone plan yields an $840 deduction at 70% business use. Do not leave this on the table.

Action Plan: Doordash Taxes Done Right

For most Dashers, getting taxes right boils down to four habits:

First, track every mile automatically using an app like Stride or Everlance -- set it up and forget it. Second, set aside 27% of every Dasher payout into a dedicated savings account labeled "taxes." Third, pay quarterly estimated taxes on April 15, June 16, September 15, and January 15. Fourth, before you file in April, pull all your records together: your 1099-NEC, mileage total, phone expenses, equipment costs, and any other business expenses. Schedule C is simpler than it looks once you have organized numbers.

With the right habits from the start, your effective tax rate after all deductions will likely land between 18-24% of your net earnings -- significantly less than the 30% many Dashers fear before they understand the deduction system.

For a complete look at all available deductions, see the self-employed tax deductions guide. Use Eonebill's expense tracker to log costs throughout the year, and our 1099 tax calculator to project your quarterly payments.