TaskRabbit Taxes in Delaware - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Delaware

The First State offers a dynamic environment for TaskRabbits, providing opportunities to connect with residents needing assistance with a wide range of tasks. However, alongside the flexibility of gig work comes the responsibility of managing taxes. As an independent contractor utilizing the TaskRabbit platform, understanding your tax obligations is crucial for remaining compliant with both federal and Delaware state regulations.

The IRS requires all TaskRabbit earnings to be reported as self-employment income, typically on Schedule C (Profit or Loss From Business) attached to your Form 1040. Because no taxes are automatically withheld from your TaskRabbit payments, you are responsible for paying both income tax and self-employment tax (Social Security and Medicare) on your net earnings – that’s your income after deducting business expenses. If your net earnings exceed $400, you will owe the 15.3% self-employment tax.

How Delaware Handles Gig Worker Taxes

As a resident of Delaware, you are required to file a Delaware state income tax return, even if your only income is from TaskRabbit. Delaware utilizes a graduated income tax system, meaning the tax rate increases as your income increases. For the 2025 tax year, Delaware’s tax brackets are expected to remain consistent with prior years, though official rates will be confirmed by the Delaware Division of Revenue. It is important to note that Delaware does not offer a state-level deduction for federal income taxes paid, unlike some other states.

The primary form for self-employed individuals to report income and calculate tax liability in Delaware is Form 1040-ES, used for estimated tax payments throughout the year, and Form 1040-D, the Delaware Resident Income Tax Return. TaskRabbit income is reported as part of your total income on this form. Delaware also requires you to report your federal adjusted gross income (AGI) on the state return.

Delaware residents who perform services outside of the state may be subject to income tax in those other jurisdictions as well. It’s crucial to understand the tax laws of any state where you perform TaskRabbit services. For the most up-to-date information and forms, please visit the Delaware Division of Revenue website: https://revenue.delaware.gov/. Paying estimated taxes quarterly is highly recommended to avoid penalties at the end of the tax year.

Top Tax Deductions for Delaware Drivers

• Standard Mileage: The #1 deduction for TaskRabbits. The 2025 rate is 70 cents per mile. Delaware’s relatively small size and moderate gas prices generally make the standard mileage rate a very advantageous option for most TaskRabbits.
• Tolls & Parking: While Delaware doesn’t have extensive toll roads, any tolls incurred while performing TaskRabbit tasks are deductible. Keep detailed records of parking fees as well.
• Phone & Data Plan: If you use your phone for TaskRabbit-related communication, scheduling, or navigation, you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Consider deductions for items like car cleaning supplies (to maintain a professional appearance), phone mounts for safe navigation, or insulated bags if you transport items for clients.

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 yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax covers both Social Security and Medicare taxes. When you are an employee, your employer pays half of these taxes, and you pay the other half. As a self-employed individual, you are responsible for both portions, totaling 15.3%. TaskRabbit and other gig platforms do not withhold these taxes from your earnings, so it’s essential to plan for this expense when filing your taxes.