DoorDash Dasher Taxes in Arkansas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Arkansas

Delivering for DoorDash across the Natural State offers flexibility, but it also comes with tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

The IRS requires DoorDash Dashers to report their earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing their federal income tax return. Furthermore, because no taxes are withheld from your DoorDash payments, you’ll likely owe self-employment tax – covering both Social Security and Medicare – on any net earnings exceeding $400.

How Arkansas Handles Gig Worker Taxes

As a resident of Arkansas, you are required to file a state income tax return, even if your federal tax liability is zero. Arkansas utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Arkansas residents who earn income as independent contractors, such as DoorDash Dashers, will primarily use Form AR1040 and Schedule IN (Income) to report their earnings. It's important to accurately calculate your net profit from your DoorDash business (total earnings minus deductible expenses) as this figure will be used to determine your Arkansas income tax liability. Arkansas also allows for itemized deductions, which may further reduce your taxable income. Keep meticulous records of all income and expenses related to your DoorDash work. The Arkansas Department of Finance and Administration provides detailed information and resources for taxpayers, including downloadable forms and instructions. Be aware of estimated tax requirements; if you anticipate owing $1,000 or more in Arkansas income tax, you may need to make quarterly estimated tax payments to avoid penalties. The state also offers various credits and deductions that could benefit self-employed individuals, so exploring these options is recommended.

You can find more information and resources on the Arkansas Department of Finance and Administration website: https://www.arkansas.gov/departments/finance-administration

Top Tax Deductions for Arkansas Drivers

• Standard Mileage: The most popular deduction for DoorDash drivers. The 2025 rate is 70 cents per mile. Given Arkansas’s relatively stable gas prices, the standard mileage rate is often a beneficial and simplified method for calculating your vehicle expenses.
• Tolls & Parking: While Arkansas doesn’t have extensive toll roads, any tolls incurred while actively dashing are deductible. Parking fees directly related to deliveries are also deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that you use for DoorDash. Keep records of your total bill and estimate the business use 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 tax 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 your employer withholds these taxes, as a DoorDash Dasher, you are responsible for paying both the employer and employee portions, totaling 15.3% on net earnings over $400. You’ll calculate this tax on Schedule SE (Self-Employment Tax) and include it with your Form 1040.