DoorDash Dasher Taxes in Hawaii - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Hawaii

Delivering ono grinds with DoorDash across the Hawaiian Islands 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 all 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, covering both Social Security and Medicare contributions, which are not automatically withheld from your DoorDash payouts.

How Hawaii Handles Gig Worker Taxes

As a resident of Hawaii, you are required to file a state income tax return, even if your federal tax liability is zero. Hawaii operates on a graduated income tax system, meaning the tax rate increases as your income rises. This means the more you earn delivering for DoorDash, the higher the percentage of tax you'll pay. The primary form for self-employed individuals to report income and calculate tax liability is Form N-11, the Hawaii Individual Income Tax Return. You'll likely also need to utilize Schedule E (Income or Loss from Rental Real Estate, Royalties, Partnerships, S Corporations, Trusts, etc.) to report your DoorDash income. Hawaii also has a General Excise Tax (GET) which applies to most business activities, but as a DoorDash driver, the platform typically handles the GET collection and remittance on your behalf. However, it's always prudent to confirm this with DoorDash directly. Keep meticulous records of all income and expenses, as Hawaii’s Department of Taxation actively audits returns. Remember to factor in any potential state tax credits or deductions you may be eligible for, such as those related to energy efficiency or education. For detailed information and access to forms, visit the Hawaii Department of Taxation website: https://tax.hawaii.gov/

Top Tax Deductions for Hawaii Drivers

• Standard Mileage: The most popular deduction for Dashers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given the island geography and potential for significant mileage traversing Oahu, Maui, or the Big Island, this deduction can substantially reduce your tax burden.
• Tolls & Parking: While Hawaii doesn't have traditional toll roads, parking fees incurred directly while actively performing deliveries are deductible. Keep receipts!
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for DoorDash deliveries. If you use your phone 75% for DoorDash, you can deduct 75% of the bill.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot bags used exclusively for deliveries are deductible.

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 larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises Social Security and Medicare taxes. Unlike traditional employment where your employer withholds these taxes, as a self-employed DoorDash Dasher, you are responsible for paying both the employer and employee portions, totaling 15.3% on net earnings exceeding $400. This is paid through Schedule SE (Self-Employment Tax) when filing your federal tax return.