DoorDash Dasher Taxes in Arizona - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Arizona

Navigating the vibrant streets of Phoenix, Tucson, and beyond as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from DoorDash are considered self-employment income, requiring diligent record-keeping and accurate tax filing.

The IRS requires all DoorDash Dashers to report their income on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, because no taxes are withheld from your DoorDash payments, Dashers are responsible for paying self-employment taxes, which cover both Social Security and Medicare. Failure to properly report income and pay taxes can result in penalties and interest.

How Arizona Handles Gig Worker Taxes

As a resident of Arizona, a state income tax return is generally required, even if federal income tax liability is zero. Arizona operates under a flat income tax rate system, meaning all income is taxed at the same percentage, regardless of income bracket. For the 2025 tax year, the Arizona state income tax rate is 2.5%. Self-employed individuals, including DoorDash Dashers, will use Form 140 to file their Arizona state income tax return. Schedule A (Arizona Itemized Deductions) may be used to itemize deductions, potentially reducing taxable income. Arizona also allows for a deduction for the federal income tax paid, which can be beneficial for self-employed individuals. It's important to note that Arizona conforms to many federal tax provisions, but it's crucial to stay updated on any differences. The Arizona Department of Revenue provides detailed information and resources for self-employed taxpayers, including FAQs and filing instructions. Remember to accurately report your net earnings from Schedule C on your Arizona Form 140. Failure to file or pay on time can result in penalties and interest assessed by the state. Keep thorough records of all income and expenses to support your tax filings.

You can find more information on Arizona tax laws and filing requirements at the Arizona Department of Revenue website.

Top Tax Deductions for Arizona Drivers

• Standard Mileage: The most popular deduction for DoorDash Dashers. The 2025 rate is 70 cents per mile. Given Arizona's expansive geography and the distances often covered for deliveries, especially in areas outside of major cities, the standard mileage rate is often a very advantageous option.
• Tolls & Parking: While Arizona doesn't have extensive toll road systems like some states, any tolls incurred during deliveries are deductible. Parking fees directly related to deliveries are also deductible.
• Phone & Data Plan: The portion of your cell phone and data plan used for DoorDash deliveries is deductible. Keep a log of business use versus personal use to accurately calculate the deductible percentage.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot bags used for deliveries are all deductible business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas, oil changes, or repairs in the same year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax covers both Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as a DoorDash Dasher, you are responsible for paying both the employer and employee portions, totaling 15.3% on net earnings over $400. This is a significant tax liability, so planning and setting aside funds throughout the year is crucial.