DoorDash Dasher Taxes in New York - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in New York?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and New York State levels. The IRS considers you self-employed, meaning you're essentially running your own business. You'll report your earnings and expenses on Schedule C (Profit or Loss From Business) when you file your federal income tax return (Form 1040). This schedule calculates your net profit – your earnings minus your business expenses.

New York State also taxes this income. Because New York has a graduated income tax system, the rate you pay depends on your total taxable income for the year. This means different portions of your income are taxed at different rates. Your DoorDash net profit (from Schedule C) will be added to your other income (like wages from a W-2 job, if applicable) to determine your overall New York State tax liability. You'll use Form IT-1040 to file your New York State income tax return.

Top Tax Write-offs 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 every mile driven while actively delivering for DoorDash (from accepting an order to dropping it off). You can also deduct mileage for trips to pick up supplies specifically for dashing (e.g., insulated bags).
• 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 your DoorDash business. If you use your phone 100% for DoorDash, you can deduct the entire bill.
• Hot Bags & Delivery Equipment: The cost of items like insulated delivery bags, phone mounts, dashcams, and even a portion of your car maintenance (oil changes, tires – if you use the actual expense method instead of mileage) are deductible.
• DoorDash Software/Subscription Fees: Any fees you pay directly to DoorDash for access to their platform or for optional services can be deducted as business expenses.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called self-employment tax and totals 15.3% (12.4% for Social Security and 2.9% for Medicare). You'll calculate this on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on your net profit (after deducting business expenses). Also, you don't pay Social Security tax on earnings over a certain limit (for 2024, it's $168,600). You can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for New York Residents

Navigating self-employment taxes can be complex, especially with New York’s graduated income tax system. 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 eligible deductions and complying with all federal and New York State tax laws. Proper planning can save you significant money and avoid potential issues with the IRS or the New York State Department of Taxation and Finance.