DoorDash Dasher Taxes in Delaware - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Delaware?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Delaware 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. Schedule C is where you detail your income and expenses. The difference between your income and deductible expenses is your net profit, which is then added to your other income when calculating your adjusted gross income (AGI).

Delaware Specifics: Delaware has a graduated income tax system. This means the tax rate you pay depends on your total taxable income. As your income increases, so does the tax rate. Your net profit from DoorDashing (as reported on Schedule C) will be added to your other income sources (like wages from a traditional job, if any) to determine your total Delaware taxable income and the applicable tax bracket. You'll use Delaware Form 100 to calculate your state income tax liability. Delaware also offers various credits and deductions that may further reduce your tax bill – it’s worth exploring these on the Delaware Division of Revenue website.

Top Tax Write-offs for DoorDash Dashers

As a self-employed Dasher, you can significantly reduce your tax liability by claiming legitimate business expenses. Here are some key deductions:

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use. Keep a detailed log of all miles driven while actively delivering orders (from the time you accept an order to the time you drop it off). You can use apps like Stride or Everlance to track this automatically.
• 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 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.

Important: Keep receipts for all expenses! The IRS requires documentation to support your deductions.

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 (from Schedule C). Also, you don’t pay self-employment tax on the portion of your 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.

You can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for Delaware Residents

Navigating self-employment taxes can be complex. As a Delaware resident, remember to factor in the state’s graduated income tax rates when estimating your tax liability. Consider making estimated tax payments quarterly to avoid penalties. I strongly recommend keeping meticulous records of your income and expenses throughout the year. If you find yourself overwhelmed, consulting with a qualified tax professional (like myself!) can provide peace of mind and ensure you're taking advantage of all available deductions and credits. Good luck, and happy dashing!