DoorDash Dasher Taxes in Los Angeles, California - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Los Angeles, California

Navigating the bustling streets of Los Angeles as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. Delivering from Santa Monica to Hollywood requires understanding how your earnings are taxed, especially as an independent contractor.

As a DoorDash driver, you are classified as an independent contractor by the company. This means you’re responsible for reporting your income to the IRS and paying self-employment taxes. Income earned through DoorDash is reported on Schedule C (Profit or Loss From Business) when filing your federal income tax return. Furthermore, earnings exceeding $400 require the payment of self-employment taxes, covering both Social Security and Medicare.

How California Handles Gig Worker Taxes

As a resident of California, you are required to file a state income tax return, even if your federal tax liability is zero. California has a graduated income tax system, meaning the tax rate increases as your income increases. This is separate from your federal tax obligations. The primary form for self-employed individuals to report income and calculate tax liability is Form 540. California also requires you to report your self-employment income on Schedule CA (540), which is used to calculate your state adjusted gross income.

Given the high cost of living and frequent traffic congestion in Los Angeles, accurately tracking mileage and eligible expenses is crucial. California’s Franchise Tax Board (FTB) closely monitors self-employment income, and it’s important to maintain detailed records of all earnings and expenses. Parking in areas like Downtown Los Angeles or near UCLA can quickly add up, and these costs are potentially deductible. Furthermore, the demand for delivery services fluctuates significantly across Los Angeles, impacting potential earnings and therefore, tax liability. Be aware of potential local ordinances related to commercial vehicle parking or delivery zones, as these could impact business expenses. California also has a minimum franchise tax for certain business structures, though this is less common for sole proprietors like most Dashers. You can find more information and resources on the California Franchise Tax Board website: https://www.ftb.ca.gov/

Top Tax Deductions for Los Angeles, California Drivers

• Standard Mileage: The #1 deduction. The 2025 rate is 70 cents/mile. Given California’s consistently high gas prices, especially in Los Angeles County, carefully consider whether the standard mileage rate or the actual expenses method will yield a larger deduction.
• Tolls & Parking: Los Angeles drivers frequently encounter tolls on certain freeways and bridges. Keep detailed records of all toll expenses. Parking fees, particularly in densely populated areas like West Hollywood or near Staples Center, are also deductible.
• Phone & Data Plan: The percentage of your phone and data plan used for DoorDash deliveries is deductible. If you use your phone exclusively for work during delivery hours, you can deduct the entire cost.
• Vehicle-Related Costs: Expenses like car washes (to maintain a professional appearance), phone mounts, insulated food bags, and dash cams are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas or repairs 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 covers both Social Security and Medicare taxes. 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 throughout the year to avoid penalties.