DoorDash Dasher Taxes in Arizona - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Arizona?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Arizona state levels. The IRS considers you self-employed, meaning you're essentially running your own business. This has implications for how you report your income and pay taxes.

Federal Requirements: You'll report your DoorDash earnings on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form is where you detail your income and your deductible business expenses. The difference between your income and expenses is your net profit, which is then added to your other income when calculating your adjusted gross income (AGI).

Arizona Specific Rules: Arizona has a flat income tax rate. For the 2024 tax year (filing in 2025), the rate is 2.5%. Your taxable income in Arizona is calculated after subtracting any applicable deductions and exemptions. Because you're self-employed, your net profit from Schedule C will be included in your Arizona taxable income. Arizona also generally follows federal rules regarding deductions, meaning many of the write-offs available on your federal return will also reduce your Arizona tax liability.

Top Tax Write-offs for DoorDash Dashers

As a DoorDash Dasher, you have several opportunities to reduce your taxable income through legitimate business deductions. Keeping excellent records is crucial to support these deductions.

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use. You'll need to track all miles driven while actively “on duty” with DoorDash (from accepting an order to dropping it off). Apps like Stride or Everlance can help with this. You can't deduct commuting miles.
• Phone Expenses: You likely use your phone for navigation, accepting orders, and communicating with customers. You can deduct the percentage of your phone bill that relates to business use. If you use your phone 100% for DoorDash, you can deduct the entire bill.
• Hot Bags & Equipment: The cost of your insulated delivery bags, phone mounts, dashcams, and other equipment used specifically for DoorDashing is deductible. For items with a useful life of more than one year (like a dashcam), you may need to depreciate the cost over several years.
• DoorDash Software/Subscription Fees: Any fees you pay for apps or services that directly help you with DoorDashing (beyond the DoorDash app itself) may be deductible.

The 15.3% Self-Employment Tax Surprise

Being self-employed means you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called self-employment tax, and it's currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You only pay self-employment tax on profits over $400.

You'll calculate this on Schedule SE (Self-Employment Tax). The good news is that you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI) on Form 1040, which helps lower your overall tax bill.

Closing Tip for Arizona Residents

Navigating self-employment taxes can be complex. Don't hesitate to consult with a qualified tax professional, especially if this is your first year as a DoorDash Dasher or if your financial situation is complicated. Keeping meticulous records throughout the year will save you time and potential headaches when it's time to file. Arizona offers resources on their Department of Revenue website (azdor.gov) as well. Wishing you a successful and tax-smart year!