DoorDash Dasher Taxes in North Carolina - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in North Carolina?

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

North Carolina Specifics: North Carolina has a flat income tax rate for 2024, currently at 4.5%. Your net profit from your Schedule C will be included in your North Carolina taxable income, and taxed at this flat rate. You'll file Form D-400 to report your state income tax.

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). You can use apps to track this, or a simple notebook. You cannot include commuting miles.
• 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 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 food bags, phone mounts, dash cams, and other equipment used specifically for DoorDashing is deductible.
• DoorDash Software/Subscription Fees: Any fees you pay directly to DoorDash (beyond the standard commission) for access to tools or services can be deducted.

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 halves. This is called Self-Employment Tax, and it's currently 15.3% (12.4% for Social Security up to the annual wage base, 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 earnings after subtracting your business expenses from your income on Schedule C. Also, you can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for North Carolina Residents

Tax season can be complex, especially when you're self-employed. I strongly recommend keeping meticulous records of 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 North Carolina tax laws. Don't wait until the last minute – proactive tax planning can save you money and stress.