DoorDash Dasher Taxes in Texas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Texas?

Yes, your income as a DoorDash Dasher is taxable at the federal level, even though Texas has no state income tax. The IRS considers you a self-employed individual, not an employee of DoorDash. This means 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). You’ll calculate your net profit (income minus expenses) on Schedule C, and that net profit is then added to your adjusted gross income on Form 1040.

Because Texas does not have a state income tax, you will not file a state income tax return related to your DoorDash income. However, you are still responsible for federal taxes.

Top Tax Write-offs for DoorDash Dashers

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per business mile driven. Keep a detailed log (date, starting/ending location, business purpose – delivery) to substantiate your mileage. Apps like Stride or Everlance can help.
• Phone Expenses: You likely use your phone for navigation, accepting/managing orders, and communication. You can deduct the percentage of your phone bill that relates to your DoorDash work. If you use your phone exclusively for DoorDash, you can deduct the entire bill.
• Hot Bags & Delivery Equipment: The cost of items like insulated delivery bags, phone mounts, and even a dashcam (for safety/documentation) are deductible. These are generally considered Section 179 expenses, allowing you to deduct the full cost in the year of purchase (within limits).
• DoorDash Software/Subscription Fees: Any fees you pay for apps or services specifically used to enhance your DoorDash performance (e.g., tax preparation software geared towards gig workers) are deductible.

The 15.3% Self-Employment Tax Surprise

As a self-employed individual, you're responsible for both the employer and employee portions of Social Security and Medicare taxes – collectively known as self-employment tax. This totals 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings. However, you only pay self-employment tax on profits over $400. You’ll calculate this on Schedule SE (Self-Employment Tax). The good news is that you can deduct one-half of your self-employment tax from your gross income on Form 1040, which reduces your overall tax liability.

Closing Tip for Texas Residents

While you benefit from the lack of state income tax in Texas, diligent record-keeping is crucial for maximizing your federal tax deductions as a DoorDash Dasher. Consider using accounting software or a dedicated app to track your mileage and expenses throughout the year. Don't hesitate to consult with a qualified tax professional if you have specific questions or complex tax situations. Proper planning can save you money and ensure you comply with all IRS regulations.