DoorDash Dasher Taxes in Massachusetts - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Massachusetts

Navigating the historic streets of Boston and beyond as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

DoorDash drivers in Massachusetts, like all independent contractors, are required to report their income to the IRS on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, earnings exceeding $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 Massachusetts Handles Gig Worker Taxes

As a resident of Massachusetts, filing a state income tax return is mandatory, even if no state income tax is owed. Massachusetts employs a flat income tax rate of 5.0% 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. The primary form for self-employed individuals to report income and calculate tax liability is Form 1 (Massachusetts Form 1, Income Tax Return). You will need to include Schedule C information from your federal return when completing Form 1. Massachusetts also requires the filing of Schedule SE (Self-Employment Tax) with your federal return to calculate your self-employment tax liability, which then impacts your state income tax calculation. It’s important to note that Massachusetts allows for a deduction for the self-employment tax paid on your federal return when calculating your state adjusted gross income. Keep meticulous records of all income and expenses throughout the year to ensure accurate reporting. The Massachusetts Department of Revenue provides comprehensive resources and guidance for self-employed individuals; you can find more information at Massachusetts Department of Revenue.

Top Tax Deductions for Massachusetts Drivers

• Standard Mileage: The most popular and often most beneficial deduction. For the 2025 tax year, the standard mileage rate is 70 cents per mile. This rate covers wear and tear, gas, oil, and other vehicle-related expenses.
• Tolls & Parking: Massachusetts drivers frequently encounter tolls on the Massachusetts Turnpike and other roadways. These toll expenses, along with any parking fees incurred while actively dashing, are 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. Keep a log of the time spent dashing versus personal use to justify the deduction.
• 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, repairs, insurance) in the same tax year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment 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 through estimated tax payments throughout the year or when you file your annual tax return. This tax applies to your net earnings – your total DoorDash income minus your deductible business expenses.