DoorDash Dasher Taxes in District of Columbia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in District of Columbia

Navigating the vibrant streets of the District as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from DoorDash are subject to both federal and District of Columbia taxes, requiring careful record-keeping and understanding of applicable deductions.

The IRS requires DoorDash drivers to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, because no taxes are withheld from your DoorDash payments, you are responsible for paying self-employment tax, which covers both Social Security and Medicare taxes. This applies if your net earnings (income minus business expenses) exceed $400.

How District of Columbia Handles Gig Worker Taxes

As a resident of the District of Columbia, you are required to file a District of Columbia individual income tax return, even if you don't owe any tax. The District utilizes a graduated income tax system, meaning the tax rate increases as your income increases. For the 2025 tax year, the primary form for self-employed individuals to report income and calculate tax liability is Form D-40, Individual Income Tax Return. The District of Columbia Office of Tax and Revenue (OTR) provides detailed instructions and resources for filing. It's important to note that the District generally conforms to federal tax law, but there can be specific differences, particularly regarding deductions and credits. For example, certain business expenses allowed at the federal level may have specific limitations or requirements at the District level. Furthermore, estimated tax payments are generally required if you expect to owe $1,000 or more in District taxes. Failing to make timely estimated tax payments can result in penalties. The OTR website offers tools to help calculate estimated taxes. Keep meticulous records of all income and expenses to ensure accurate filing and maximize potential deductions. The District also offers various tax credits that may be applicable to self-employed individuals, so exploring these options is recommended.

Top Tax Deductions for District of Columbia Drivers

• Standard Mileage: The most popular deduction for DoorDash drivers. The 2025 rate is 70 cents per mile for business use of your vehicle. Given the cost of maintaining a vehicle in a densely populated area like the District, this rate provides significant tax relief.
• Tolls & Parking: Driving in the District and surrounding areas often involves tolls, particularly when delivering to Maryland or Virginia. Keep detailed records of all toll expenses and parking fees incurred while actively dashing.
• Phone & Data Plan: A portion of your monthly cell phone and data plan is deductible if you use it for business purposes (e.g., navigating with the DoorDash app, communicating with customers). Calculate the percentage of time the phone is used for work.
• 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, insurance) in the same tax 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, which are typically withheld from employee paychecks. As a DoorDash driver classified as an independent contractor, you are responsible for paying both the employer and employee portions of these taxes, totaling 15.3% on net earnings over $400. You can deduct one-half of your self-employment tax from your gross income.

Resource: District of Columbia Office of Tax and Revenue