DoorDash Dasher Taxes in Pennsylvania - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Pennsylvania?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Pennsylvania 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 Taxes: You'll report your DoorDash earnings on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form allows you to deduct business expenses (more on that below) to arrive at your taxable profit. You'll receive a Form 1099-K from DoorDash if your earnings exceed $20,000 and you have more than 200 deliveries. However, even if you don't receive a 1099-K, you are still legally obligated to report all income.

Pennsylvania State Taxes: Pennsylvania has a flat income tax rate of 3.07% for the 2024 tax year (filing in 2025). Your net profit (income after deductions) from your Schedule C will be included in your Pennsylvania income tax return (Form PA-1040). Pennsylvania does not allow for a standard deduction like the federal government, so your taxable income is calculated differently. You'll report your self-employment income on Schedule PA-SE.

Top Tax Write-offs for DoorDash Dashers

As a self-employed Dasher, you can significantly reduce your tax liability by claiming eligible business deductions. Here are some key write-offs:

• 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 for deliveries (using an app like Stride Tax or MileIQ is highly recommended). You can deduct the business portion of your mileage, but not commuting miles.
• Phone Expenses: If you use your personal phone for DoorDash (which is common), you can deduct the percentage of the phone bill attributable to business use. For example, if you use your phone 70% of the time for DoorDash, you can deduct 70% of your monthly bill.
• Hot Bags & Delivery Equipment: The cost of items like insulated hot bags, phone mounts, and other equipment used specifically for DoorDash deliveries are deductible.
• Software & Apps: Fees paid for apps that help you track mileage, manage expenses, or optimize deliveries (like Stride Tax, Everlance, or similar) 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 (profit) after subtracting your business expenses. You also don't pay self-employment tax on the portion of your earnings that exceeds the Social Security wage base (which is $168,600 for 2024). However, the 2.9% Medicare tax applies to all self-employment income.

Closing Tip for Pennsylvania Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records of your income and expenses throughout the year. Consider using accounting software or a dedicated app designed for gig workers. Don't hesitate to consult 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 Pennsylvania tax laws. Proper planning can save you significant money and stress during tax season.