DoorDash Dasher Taxes in Kentucky - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Kentucky

Delivering for DoorDash across the Bluegrass State 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 Kentucky Handles Gig Worker Taxes

As a Kentucky resident earning income as a DoorDash Dasher, a Kentucky state income tax return is required, even if no Kentucky income tax was withheld. Kentucky operates under a flat income tax rate, currently at 4.0% for the 2025 tax year. This means all taxable income is taxed at the same rate. DoorDash income is considered taxable income and must be reported on Form 740, Kentucky Income Tax Return for Individuals. Specifically, self-employment income will be reported on Schedule SE, which is then transferred to Form 740. Kentucky also allows for a deduction for the federal income tax paid. It's important to note that Kentucky does not recognize the federal Qualified Business Income (QBI) deduction, so it won't reduce your Kentucky taxable income. Kentucky also requires you to pay estimated taxes quarterly if you expect to owe $500 or more in state income tax. Failure to do so may result in penalties. For detailed information and forms, please visit the Kentucky Department of Revenue website: https://revenue.ky.gov/. Staying informed about Kentucky’s tax laws is vital for compliance and avoiding potential issues.

Top Tax Deductions for Kentucky 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 Kentucky’s generally moderate gas prices, the standard mileage rate is likely to be a beneficial option for most Dashers.
• Tolls & Parking: Kentucky has some toll roads, particularly around Louisville. Keep accurate records of any tolls paid while actively delivering. Parking fees incurred directly for deliveries are also deductible.
• Phone & Data Plan: If you use your personal phone for DoorDash, you can deduct the percentage of your monthly bill that corresponds to business use. Maintain a log of the time spent dashing versus personal use to justify the 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, insurance) in the same tax 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 these taxes are withheld from your paycheck, as a self-employed individual, you are responsible for paying both the employer and employee portions. This combined rate is 15.3% on net earnings exceeding $400. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).