Amazon Flex Taxes in Delaware - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Delaware

The First State offers a unique landscape for independent contractors, and navigating taxes as an Amazon Flex driver requires careful attention. Delivering smiles across Delaware’s charming towns and cities comes with the responsibility of managing federal and state tax obligations.

As an Amazon Flex driver, the IRS considers you self-employed. This means income earned through deliveries must be reported on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, because no taxes are withheld from your Flex earnings, you are responsible for paying self-employment taxes – covering both Social Security and Medicare – on any net earnings exceeding $400.

How Delaware Handles Gig Worker Taxes

Delaware, as a state, requires residents to file a state income tax return, even if no state income tax is due. Delaware operates on a graduated income tax system, meaning the tax rate increases as your income rises. As an Amazon Flex driver earning income as a self-employed individual, you will need to report your earnings and calculate your Delaware income tax liability using Form 1040-D, Delaware Declaration of Income Tax. This form, along with any applicable schedules, is used to determine your tax obligation. Delaware also allows for itemized deductions, which can potentially reduce your taxable income. It's important to keep accurate records of all income and expenses throughout the year to ensure accurate filing. Delaware’s Division of Revenue offers resources and guidance for self-employed individuals, including information on estimated tax payments. Failing to pay estimated taxes throughout the year can result in penalties, so proactive tax planning is essential. The state also offers various credits and deductions that may be applicable to your specific situation. Consulting with a tax professional familiar with Delaware tax law is highly recommended to maximize potential savings and ensure compliance.

For more information and resources, please visit the Delaware Division of Revenue: https://revenue.delaware.gov/

Top Tax Deductions for Delaware Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. This simplifies expense tracking significantly.
• Tolls & Parking: Delaware drivers may encounter tolls on the Delaware Turnpike. These tolls, along with any parking fees incurred directly for deliveries, are deductible.
• Phone & Data Plan: If you use your personal phone for Flex-related activities (navigation, communication with Amazon, etc.), you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, dash cams, and insulated food delivery bags 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 tax year. Choose the method that yields the greater 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, Amazon and other delivery 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.