DoorDash Dasher Taxes in Hawaii - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Hawaii?

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

Federal Taxes: You'll report your DoorDash earnings on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form allows you to deduct business expenses (more on that below) to arrive at your taxable profit. Even if you receive a 1099-K from DoorDash, it's your responsibility to accurately report all income, even if it's below the 1099-K reporting threshold.

Hawaii State Taxes: Hawaii has a graduated income tax system. This means the tax rate you pay increases as your income increases. You'll use Form N-11 to file your Hawaii state income tax return. Your federal adjusted gross income (AGI), calculated after deducting federal adjustments and Schedule C profit/loss, is a starting point for calculating your Hawaii taxable income. Hawaii also has various deductions and credits that may apply to your situation, so it's important to review the state's tax instructions carefully.

Top Tax Write-offs for DoorDash Dashers

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

• 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 for deliveries (using an app or a notebook). You can deduct the miles from your home to your first delivery, from your last delivery back home, and between deliveries. You cannot deduct commuting miles to/from your normal place of business if you don't have a fixed location.
• Phone Expenses: If you use your personal phone for DoorDash (which is common), you can deduct the percentage of the phone bill attributable to business use. For example, if you use your phone 70% of the time for DoorDash, you can deduct 70% of your monthly bill.
• Hot Bags & Delivery Equipment: The cost of items like insulated delivery bags, phone mounts, and other equipment used specifically for DoorDash are deductible.
• Software & Apps: If you use apps or software to track mileage, expenses, or manage your DoorDash business, the cost of these tools is deductible.

Important: Keep receipts and documentation for all expenses you claim!

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 profit (income minus expenses). Also, you don't pay self-employment tax on the portion of your earnings that exceeds the Social Security wage base (which changes annually – for 2024, it's $168,600). However, the 2.9% Medicare tax applies to all self-employment income. You can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Hawaii Residents

Navigating self-employment taxes can be complex, especially with Hawaii's graduated income tax system. Consider using tax software designed for self-employed individuals or consulting with a qualified tax professional in Hawaii. Accurate record-keeping throughout the year will save you time and potential headaches during tax season. Mahalo, and best of luck with your DoorDash business!