DoorDash Dasher Taxes in Michigan - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Michigan

Navigating the vibrant streets of cities like Detroit, Ann Arbor, and Grand Rapids 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 Michigan, like all independent contractors, are required to report their income to the IRS on Schedule C (Profit or Loss from Business) when filing their federal income tax return. 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 Michigan Handles Gig Worker Taxes

As a resident of Michigan, a state income tax return is required, even if all income is from out-of-state sources. Michigan operates under a flat income tax rate, currently at 4.05% for the 2025 tax year. This means all taxable income is taxed at the same rate. DoorDash income is considered business income and is reported on Michigan Form MI-1040, Schedule 1, along with any related business deductions. Self-employed individuals in Michigan are also responsible for paying the Michigan Business Tax (MBT), though many small businesses, including most DoorDash drivers, will likely have a minimal MBT liability. It's important to accurately track income and expenses throughout the year to determine your net profit, which is the basis for both your federal and state tax calculations. Michigan also offers various credits and deductions that may reduce your overall tax liability; consulting with a tax professional familiar with Michigan tax law is recommended to ensure you are maximizing all available benefits. Remember to keep detailed records of all mileage, expenses, and income received from DoorDash. The Michigan Department of Treasury provides comprehensive information and resources for self-employed individuals on their website: Michigan Department of Treasury.

Top Tax Deductions for Michigan Drivers

• Standard Mileage: The most popular deduction for DoorDash drivers. The 2025 rate is 70 cents per mile. Given Michigan's diverse geography, from urban centers to rural areas, accurately tracking mileage is essential.
• Tolls & Parking: While Michigan doesn't have extensive toll roads, any tolls incurred during deliveries are deductible. Parking fees directly related to deliveries are also deductible.
• Phone & Data Plan: The portion of your cell phone and data plan used for DoorDash deliveries is deductible. Keep records demonstrating the business use percentage.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot bags 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 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. DoorDash 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 estimated tax payments made quarterly to the IRS. Failure to do so may result in penalties.