DoorDash Dasher Taxes in Maine - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Maine?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Maine state levels. The IRS considers you self-employed, meaning you're essentially running your own small business.

Federal Taxes: 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 calculate your net profit – your earnings minus your business expenses. It’s crucial to keep accurate records of both income and expenses.

Maine State Taxes: Maine has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your DoorDash net profit (after Schedule C deductions) will be added to your other income, and then taxed according to Maine’s tax brackets for the 2024 tax year (filing in 2025). Maine also requires you to file a state income tax return (Form 1040-ME) to report this income. You can find the current Maine tax brackets and forms on the Maine Revenue Services website: https://www.maine.gov/revenue/

Top Tax Write-offs for DoorDash Dashers

As a self-employed Dasher, you can significantly reduce your tax liability by claiming eligible 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 mileage log (date, miles driven, purpose – deliveries) to support your claim. You can’t use mileage if you’ve already claimed depreciation on your vehicle.
• Phone Expenses: You can deduct the portion of your cell phone bill that relates to your DoorDash work. If you use your phone solely for DoorDash, you can deduct the entire bill. Otherwise, you’ll need to calculate the percentage of business use.
• Hot Bags & Delivery Equipment: The cost of items like insulated delivery bags, phone mounts, and dashcams are deductible.
• Software & Apps: Expenses for apps or software used specifically for tracking mileage, income, or managing your DoorDash business 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 on Schedule C. Also, you don’t pay self-employment tax on earnings below $400. You can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Maine Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for freelancers or consulting with a qualified tax professional (like myself!) to ensure you’re taking all the deductions you’re entitled to and complying with both federal and Maine state tax laws. Don't wait until tax season to get organized! Wishing you a profitable and tax-efficient year as a DoorDash Dasher in Maine.