DoorDash Dasher Taxes in Massachusetts - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Massachusetts?

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

Massachusetts Specific Rules: Massachusetts has a flat income tax rate of 5.0% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be added to your other income, and this total taxable income will be subject to the 5.0% rate. Massachusetts also requires you to file a state income tax return (Form 1-NR/PY if you are not a resident, Form 1 if you are). Like the federal government, Massachusetts allows you to deduct business expenses to reduce your taxable income.

Top Tax Write-offs for DoorDash Dashers

As a DoorDash Dasher, you're entitled to deduct legitimate business expenses to lower your tax bill. 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 “on duty” (from accepting a delivery request to completing it). You can use apps to track this, or a simple notebook. You cannot include commuting miles.
• Phone Expenses: You likely use your phone for the DoorDash app, navigation, and communication. You can deduct the percentage of your phone bill that relates to business use. If you use your phone 75% for DoorDash, you can deduct 75% of the bill.
• Hot Bags & Equipment: The cost of insulated bags, phone mounts, dash cams, and other equipment used specifically for DoorDash deliveries is deductible.
• DoorDash Software/Subscription Fees: Any fees you pay directly to DoorDash for access to the platform or for optional services (if any) are deductible.

Important Note: 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 combined 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 earnings that exceed the Social Security wage base ($168,600 for 2024). You can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Massachusetts Residents

Navigating self-employment taxes can be complex. Don't hesitate to consult with a qualified tax professional, especially if this is your first year as a DoorDash Dasher. Accurate record-keeping throughout the year will save you time and potential headaches when filing your taxes. Massachusetts offers various resources on its Department of Revenue website (mass.gov/dor) to help you understand your state tax obligations. Wishing you a successful and tax-efficient year of dashing!