TaskRabbit Taxes in Massachusetts - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Massachusetts

From assembling IKEA furniture in Boston to helping with moving in Cambridge, TaskRabbit provides flexible income opportunities throughout the Commonwealth. However, that income is subject to both federal and Massachusetts state taxes, requiring careful record-keeping and understanding of applicable regulations.

As a TaskRabbit worker in Massachusetts, the IRS considers you self-employed. This means all earnings from TaskRabbit must be reported on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, self-employment also triggers a 15.3% self-employment tax, covering both Social Security and Medicare contributions, which are not automatically withheld from your TaskRabbit payments. Proactive tax planning and potential quarterly estimated tax payments are essential to avoid penalties.

How Massachusetts Handles Gig Worker Taxes

As a resident of Massachusetts, filing a state income tax return is required, even if no state income tax is owed. Massachusetts operates under a flat income tax rate, currently at 5.0%. This means all income, including earnings from TaskRabbit, is taxed at the same rate. Self-employed individuals in Massachusetts use Form 1 (Massachusetts Form 1) to report their income and calculate their tax liability. This form requires you to report your federal adjusted gross income (AGI) and then calculate your Massachusetts taxable income.

Massachusetts also requires the filing of Schedule SE (Massachusetts Schedule SE) to calculate your state self-employment tax. This is calculated based on your net earnings from self-employment, similar to the federal calculation. Remember that the state tax is applied after deducting any applicable deductions, making accurate record-keeping vital. Massachusetts offers various credits and deductions that may reduce your tax burden, so exploring these options is recommended. The Department of Revenue provides detailed guidance and resources for self-employed individuals on their website: Massachusetts Department of Revenue. Failure to file and pay state taxes on time can result in penalties and interest, so staying compliant is crucial.

Top Tax Deductions for Massachusetts Drivers

• Standard Mileage: The #1 deduction for TaskRabbits. The 2025 rate is 70 cents per mile. Given Massachusetts' traffic congestion and potential for significant mileage, this is often the most advantageous method.
• Tolls & Parking: Massachusetts has several toll roads, including the Massachusetts Turnpike (I-90). Keep detailed records of all toll expenses and parking fees incurred while performing TaskRabbit tasks; these are deductible.
• Phone & Data Plan: If you use your phone for scheduling tasks, communicating with clients, or navigating, you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Expenses like car cleaning supplies, phone mounts, dash cams, or insulated bags for food delivery (if applicable) 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 comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, TaskRabbit and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through quarterly estimated tax payments to the IRS and the Massachusetts Department of Revenue.