DoorDash Dasher Taxes in Maryland - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Maryland?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Maryland state levels. The IRS considers you self-employed, meaning you're essentially running your own business. Federally, you'll report your DoorDash earnings (and related expenses) on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. This schedule calculates your net profit – your earnings minus your business expenses.

Maryland takes this a step further. Maryland has a graduated income tax system, meaning the tax rate increases as your income increases. You'll report your federal adjusted gross income (AGI), including your Schedule C profit, on your Maryland state income tax return (Form 502). In addition to the state income tax, Maryland also levies a county (local) income tax, which varies depending on where you live. This means you'll pay state and local taxes on your DoorDash earnings. Keep accurate records to ensure you're paying the correct amount.

Top Tax Write-offs for DoorDash Dashers

As a self-employed individual, you can significantly reduce your tax liability 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 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 DoorDash. 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

Many Dashers are surprised to learn about self-employment tax. 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 calculated on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on profits over $400. The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income, which can lower your overall tax bill.

Closing Tip for Maryland Residents

Navigating self-employment taxes can be complex, especially with Maryland’s graduated income tax and local county taxes. I strongly recommend keeping meticulous records of your income and expenses throughout the year. Consider using accounting software or a tax professional specializing in self-employment to ensure you’re maximizing your deductions and complying with all federal and Maryland tax laws. Proactive tax planning can save you significant time and money when filing in 2025.