TaskRabbit Taxes in Maryland - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Maryland

From assembling furniture in Baltimore to running errands in Annapolis, TaskRabbit provides flexible income opportunities throughout Maryland. However, that income comes with tax responsibilities. As an independent contractor utilizing the TaskRabbit platform, the IRS considers you self-employed, meaning you're responsible for reporting all earnings and paying applicable taxes.

Federally, all income earned through TaskRabbit must be reported on Schedule C (Profit or Loss from Business) when filing your Form 1040. Crucially, earnings exceeding $400 require the payment of self-employment tax, covering both Social Security and Medicare contributions. Proper record-keeping throughout the year is essential for accurate tax filing.

How Maryland Handles Gig Worker Taxes

As a resident of Maryland, filing a state income tax return is required, even if no Maryland income tax is ultimately due. Maryland utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily use Form 502, Individual Income Tax Return, to report their TaskRabbit earnings. This form requires you to calculate your net profit from Schedule C and include it as part of your overall adjusted gross income. Maryland also has a county income tax, which varies depending on your residence. This is automatically calculated when filing your state return.

Maryland offers several options for paying estimated taxes throughout the year, particularly important for those with income not subject to withholding. If your estimated tax liability (federal and state combined) is $500 or more, you are generally required to make quarterly estimated tax payments to avoid penalties. The Maryland Comptroller's Office provides detailed information and resources for estimated tax payments and filing requirements. It's important to note that Maryland allows for certain credits and deductions that can reduce your overall tax liability, so exploring these options is recommended. Keep detailed records of all income and expenses related to your TaskRabbit work to ensure accurate reporting and maximize potential deductions.

For more information on Maryland state taxes, please visit the Maryland Comptroller's Office: https://www.marylandtaxes.gov/

Top Tax Deductions for Maryland Drivers

• Standard Mileage: The #1 deduction for TaskRabbits. The 2025 rate is 70 cents per mile. Given Maryland's traffic congestion, particularly around the Baltimore-Washington corridor, the mileage deduction can significantly reduce your tax burden.
• Tolls & Parking: Maryland has various toll facilities, including the Maryland Transportation Authority (MDTA) facilities. Keep meticulous records of all toll expenses and parking fees incurred while performing TaskRabbit tasks.
• Phone & Data Plan: The portion of your phone and data plan used for business purposes is deductible. If you use your phone for both personal and TaskRabbit-related communication, accurately calculate the business percentage.
• Vehicle-Related Costs: Expenses like car cleaning supplies, phone mounts for navigation, or insulated bags for food delivery tasks 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 greater 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 TaskRabbit, 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 planning and budgeting accordingly is crucial.