DoorDash Dasher Taxes in Maryland - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Maryland

Navigating the bustling streets of Baltimore, Annapolis, or Bethesda as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from DoorDash are considered self-employment income, requiring careful attention during tax season.

The IRS requires all DoorDash drivers to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Furthermore, because no taxes are withheld from your DoorDash payments, you’ll likely owe self-employment tax – the combined Social Security and Medicare taxes for individuals who work for themselves.

How Maryland Handles Gig Worker Taxes

As a resident of Maryland, you are required to file a state income tax return, even if your only income is from DoorDash. Maryland utilizes a graduated income tax system, meaning the tax rate increases as your income increases. This means the amount of tax you owe will depend on your total taxable income for the year, including your DoorDash earnings. The primary form for self-employed individuals to report income and calculate tax liability is Form 502, Maryland Income Tax Return. Maryland also allows for itemized deductions, which can potentially lower your state tax burden. It's important to note that Maryland conforms to many federal deductions, but there can be differences, so consulting the Maryland Comptroller's Office website is crucial. Additionally, Maryland has a county income tax, which varies depending on where you reside within the state. This county tax is calculated as a percentage of your taxable income and is reported on the same Form 502. Accurate record-keeping of all income and expenses is vital to ensure correct tax filing and avoid potential penalties. Remember to consider estimated tax payments throughout the year to avoid underpayment penalties when filing your annual return. For detailed information and resources, please visit the Maryland Comptroller's Office: https://www.marylandtaxes.gov/

Top Tax Deductions for Maryland Drivers

• Standard Mileage: The most popular deduction for DoorDash drivers. The 2025 rate is 70 cents per mile. Given Maryland's traffic patterns, especially around the DC metro area, tracking mileage accurately is essential to maximize this deduction.
• Tolls & Parking: Maryland drivers frequently encounter tolls, particularly when delivering in and around Baltimore and on routes to Washington D.C. Keep detailed records of all toll expenses. Parking fees incurred directly for deliveries are also deductible.
• Phone & Data Plan: The portion of your cell phone and data plan used for DoorDash deliveries is deductible. Carefully calculate the percentage of business use versus personal use.
• 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 or repairs in the same year. Choose the method that yields the largest deduction.

Understanding the 15.3% Self-Employment Tax

This tax covers both Social Security and Medicare taxes. Unlike traditional employment where your employer withholds these taxes, as a self-employed individual, you are responsible for paying both the employer and employee portions, totaling 15.3% on net earnings over $400. This is a significant tax obligation, so proper planning and accurate income/expense tracking are crucial.