DoorDash drivers are independent contractors, which means DoorDash does not withhold income tax from your earnings. You are responsible for calculating and paying your own taxes — and if you get it wrong, you could owe a large bill at tax time or face IRS penalties. Here is exactly how DoorDash taxes work and how to calculate what you owe.
How DoorDash Taxes Work
As a Dasher, you are self-employed. That means you pay two types of federal tax on your net DoorDash income:
Self-employment tax: 15.3% on the first $168,600 of net self-employment income (2026 figure). This covers Social Security (12.4%) and Medicare (2.9%).
Federal income tax: applied at your marginal rate (10% to 37%) on net income after deductions.
DoorDash Tax Calculation Example
Let us say you earned $25,000 from DoorDash in 2026 and drove 8,000 miles for work.
The IRS standard mileage rate for 2026 is $0.70 per mile driven for business. For most Dashers, mileage is the largest single deduction. Every 1,000 miles you track reduces your taxable income by $700 and your tax bill by roughly $175 at a combined 25% rate.
Track every mile from the moment you start the Dasher app to the moment you end your session, including miles between deliveries.
DoorDash Quarterly Tax Payments
If you expect to owe more than $1,000 in taxes from DoorDash earnings, the IRS requires you to make quarterly estimated tax payments. The 2026 deadlines are April 15, June 16, September 15, and January 15, 2027. Missing a payment incurs a penalty of approximately 4% annualised on the underpayment.
