DoorDash Dasher Taxes in Iowa - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Iowa

Delivering for DoorDash across the Hawkeye State, from the bustling streets of Des Moines to the charming towns along the Mississippi River, offers flexibility, but 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, covering both Social Security and Medicare contributions, which are not automatically withheld from your DoorDash payouts.

How Iowa Handles Gig Worker Taxes

As a resident of Iowa, a state income tax return is required, regardless of income level. Iowa utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Iowa’s tax brackets are expected to remain similar to prior years, though official rates will be released by the Iowa Department of Revenue. Self-employed individuals, including DoorDash Dashers, will primarily use Iowa Form 1040 and Schedule A to report their business income and calculate their state income tax liability. Iowa also allows for a deduction for federal income tax paid, which can help reduce your state tax burden. It’s important to note that Iowa does not offer a specific deduction for the self-employment tax paid, unlike some other states. Iowa also requires reporting of business income even if it's a loss, as losses can potentially offset other income. Keep meticulous records of all income and expenses to accurately complete your Iowa tax return. The state also offers resources for small businesses and self-employed individuals to help navigate the tax system.

For more information and resources, please visit the Iowa Department of Revenue: https://tax.iowa.gov/

Top Tax Deductions for Iowa Drivers

• Standard Mileage: The most popular deduction for DoorDash drivers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Iowa’s generally reasonable gas prices, the standard mileage rate is likely to be a beneficial option for most Dashers.
• Tolls & Parking: While Iowa doesn’t have extensive toll roads, any tolls incurred while delivering, as well as parking fees directly related to deliveries, are deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for DoorDash deliveries. Keep a log of business use to support this deduction.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, insulated food bags, and dash cams used specifically for DoorDash deliveries are deductible.

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 larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Because DoorDash and other gig platforms do not withhold these taxes from your earnings, it’s your responsibility to calculate and pay them, typically through estimated tax payments throughout the year, or when you file your annual tax return. Remember, only net earnings (income after deductions) are subject to this tax, and only earnings over $400.