DoorDash Dasher Taxes in Colorado - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Colorado

Navigating the Rocky Mountain roads as a DoorDash Dasher 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. Earnings over $400 necessitate the payment of self-employment taxes, which cover both Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential to maximize deductions and minimize tax liability.

How Colorado Handles Gig Worker Taxes

As a resident of Colorado, a state income tax return is required, regardless of income level. Colorado operates under a flat income tax rate, currently at 4.40% for the 2025 tax year. This means all taxable income is taxed at the same rate. DoorDash income, reported on your federal Schedule C, flows to your Colorado state income tax return (Form DR 0104). Colorado 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. The state considers income from gig work as business income, and therefore, eligible for various deductions similar to those allowed at the federal level. Colorado also offers a deduction for qualified business income (QBI), potentially reducing your state tax liability. It's important to note that Colorado's tax laws can change, so staying updated is vital. The Colorado Department of Revenue provides comprehensive information and resources for self-employed individuals.

You can find more information and access tax forms on the Colorado Department of Revenue website: https://www.colorado.gov/revenue

Top Tax Deductions for Colorado Drivers

• Standard Mileage: The most popular deduction for DoorDash drivers. The 2025 rate is 70 cents per mile. Given Colorado's diverse terrain and potential for significant mileage, this deduction can substantially reduce taxable income.
• Tolls & Parking: While Colorado doesn't have extensive toll roads, 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 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 greater deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises 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 exceeding $400. This is a significant tax obligation, so proper planning and potential quarterly estimated tax payments are crucial to avoid penalties.