DoorDash Dasher Taxes in California - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in California?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and California 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).

California Specific Rules: California has a graduated income tax system, meaning the more you earn, the higher the tax rate. Your net profit from DoorDashing will be added to your other income (from a W-2 job, investments, etc.) and taxed according to these brackets. California rates are generally higher than federal rates, so accurate record-keeping and maximizing deductions are particularly important to minimize your state tax liability. You'll use Form 540 to file your California state income tax return.

Top Tax Write-offs for DoorDash Dashers

As a self-employed individual, you can significantly reduce your tax burden by claiming eligible business expenses. Here are some key deductions for DoorDash Dashers:

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is approximately 67 cents per mile for business use. Keep a detailed log of all miles driven while “on duty” (from accepting a delivery request to completing it). Apps like Stride Tax or Everlance can help with this.
• 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 corresponds to business use. If you use your phone exclusively for DoorDash, you can deduct the entire bill.
• Hot Bags & Delivery Equipment: The cost of items like insulated delivery bags, phone mounts, and dashcams are deductible. If the item has a useful life of more than one year (like a dashcam), you'll typically depreciate it over several years.
• DoorDash Software/Subscription Fees: Any fees you pay directly to DoorDash for access to their platform or for optional services (if any) are deductible.

The 15.3% Self-Employment Tax Surprise

When you're an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed individual, you're responsible for both the employer and employee portions – a total of 15.3%. This is called self-employment tax.

You'll calculate this on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on your net earnings after subtracting your business expenses. Also, you don’t pay self-employment tax on the portion of your net earnings that exceeds the Social Security wage base (which is $168,600 for 2024). However, the 2.9% Medicare tax applies to all net earnings.

Closing Tip for California Residents

Navigating self-employment taxes can be complex, especially in a state like California with its higher tax rates. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software or a tax professional to ensure you're taking all eligible deductions and complying with both federal and California tax laws. Proactive tax planning can save you significant money and stress during filing season. Don't hesitate to seek professional advice – it's an investment in your financial well-being!