DoorDash Dasher Taxes in Tennessee - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Tennessee?

Yes, your income as a DoorDash Dasher is taxable at the federal level. The IRS considers you a self-employed individual, meaning you operate as an independent contractor, not an employee of DoorDash. 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 (income minus expenses), which is then added to your other income to determine your adjusted gross income (AGI).

Fortunately, Tennessee is unique! Tennessee does not have a state income tax. This means you won't need to file a state income tax return or pay state income tax on your DoorDash earnings. However, the federal tax obligations still apply.

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 can deduct the portion of your cell phone bill that relates to your DoorDash work. If you use your phone solely for DoorDash, you can deduct the entire bill. Otherwise, you'll need to calculate the percentage of time you use it for business.
• Hot Bags & Delivery Equipment: The cost of items like insulated delivery bags, phone mounts, and other equipment used specifically for DoorDash deliveries are deductible.
• DoorDash Software/Subscription Fees: Any fees you pay for apps or services that directly aid your DoorDash business (e.g., tax preparation software specifically for gig workers) 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). 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 gross income, which can lower your overall tax bill.

Closing Tip for Tennessee Residents

While you benefit from Tennessee’s lack of state income tax, don’t overlook your federal tax obligations as a DoorDash Dasher. Meticulous record-keeping – especially mileage logs and expense receipts – is crucial for maximizing your deductions and minimizing your tax liability. Consider using accounting software or consulting with a tax professional to ensure you're compliant and taking advantage of all available tax benefits. Happy dashing, and remember to plan for taxes throughout the year!