DoorDash Dasher Taxes in Indiana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Indiana

Navigating the bustling streets of Indianapolis and beyond 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. Proper record-keeping throughout the year is essential to accurately calculate income and eligible deductions.

How Indiana Handles Gig Worker Taxes

As a resident of Indiana, a state income tax return is required, even if no state income tax was withheld from DoorDash earnings. Indiana operates under a flat income tax rate, currently at 3.15% for the 2025 tax year. This means all taxable income is subject to the same rate. DoorDash income is considered taxable income and must be reported on Form IT-1040, Indiana Resident Income Tax Return. Self-employed individuals will also likely need to file Schedule IT-1040, Schedule SE, which is used to calculate the Indiana adjustment for self-employment tax. Indiana follows federal adjusted gross income (AGI) as a starting point, meaning deductions taken on your federal Schedule C will impact your Indiana state tax liability. It's important to note that Indiana does not offer a specific form for gig workers; the standard individual income tax forms apply. Indiana also offers various credits and deductions that may be applicable, so reviewing the Department of Revenue’s website is recommended. Estimated tax payments may be required quarterly if your tax liability is expected to be $1,000 or more. Failing to pay estimated taxes can result in penalties. For detailed information and forms, please visit the Indiana Department of Revenue: https://www.in.gov/dor/

Top Tax Deductions for Indiana Drivers

• Standard Mileage: The most popular deduction for DoorDash drivers. The 2025 rate is 70 cents per mile. Given Indiana’s relatively stable gas prices, the standard mileage rate is often the most advantageous method for maximizing deductions.
• Tolls & Parking: While Indiana doesn’t have extensive toll roads like some states, 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 records of your total bill and estimate the percentage of business use.
• 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 larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, DoorDash and other gig 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.