DoorDash Dasher Taxes in California - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in California

Navigating the Golden State’s bustling cities and scenic highways as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

DoorDash drivers in California, like all independent contractors, are required to report their income to the IRS on Schedule C (Profit or Loss from Business) when filing their federal income tax return. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your DoorDash payouts.

How California Handles Gig Worker Taxes

As a resident of California, a state income tax return is required even if no state income tax is ultimately due. California employs a graduated income tax system, meaning the tax rate increases as your income rises. This means your tax bracket, and therefore your tax rate, will depend on your total taxable income for the year. DoorDash income is considered taxable income and must be accurately reported. The primary form for self-employed individuals to report income and calculate tax liability is California Form 540. California also requires you to pay estimated taxes quarterly if you expect to owe $1,000 or more in state income tax. Failing to do so can result in penalties. Given California’s relatively high gas prices, it’s particularly important for Dashers to carefully consider whether the standard mileage rate or the actual expense method will yield a larger deduction. The Franchise Tax Board (FTB) offers numerous resources for independent contractors, including information on estimated taxes and deductions. Remember to keep meticulous records of all income and expenses to support your tax filings. California also has specific rules regarding business licenses; while DoorDash doesn’t typically require a city business license for delivery work, it’s always best to verify local requirements.

You can find more information and resources on the California Franchise Tax Board website: https://www.ftb.ca.gov/

Top Tax Deductions for California Drivers

• Standard Mileage: The most popular deduction for DoorDash drivers. The 2025 rate is 70 cents per mile. Given California’s consistently high gas prices, carefully evaluate if this rate adequately covers your vehicle expenses.
• Tolls & Parking: California drivers frequently encounter tolls, particularly around the Bay Area using the Fastrak system. These tolls, along with any parking fees incurred directly for deliveries, are deductible.
• Phone & Data Plan: The portion of your monthly phone and data plan used for DoorDash deliveries is deductible. Keep a log of the percentage of time your phone is used for work purposes.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, insulated food bags, and dash cams are deductible as business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, and insurance) in the same year. Choose the method that results in the largest deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, DoorDash and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS.