DoorDash Dasher Taxes in Minnesota - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Minnesota

Navigating the Twin Cities and beyond as a DoorDash Dasher offers flexibility, but it also comes with tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

DoorDash drivers in Minnesota, like all independent contractors, are required to report their earnings 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. This is because platforms like DoorDash do not withhold these taxes from your payments.

How Minnesota Handles Gig Worker Taxes

As a resident of Minnesota, filing a state income tax return is required, even if no federal tax is due. Minnesota utilizes a graduated income tax system, meaning the tax rate increases as your income rises. This means the more you earn delivering for DoorDash, the higher the percentage of tax you'll pay on each additional dollar. The primary form for self-employed individuals to report income and calculate tax liability is Form M1, Individual Income Tax Return, along with Schedule 1, which is used to report business income. Minnesota also has a specific form, Schedule SB, for calculating self-employment tax. It's important to note that Minnesota conforms to many federal deductions, but there can be differences, so careful review of state guidelines is essential. Minnesota also offers a working family credit, which may be applicable depending on income and family status. Keep detailed records of all income and expenses to accurately determine your state tax liability. The Minnesota Department of Revenue provides comprehensive resources and tools for taxpayers, including information specific to self-employment.

You can find more information and resources on the Minnesota Department of Revenue website: https://www.revenue.state.mn.us/

Top Tax Deductions for Minnesota Drivers

• Standard Mileage: The most popular deduction for DoorDash drivers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Minnesota's sometimes harsh winter driving conditions and the distances covered across the state, this rate can significantly reduce taxable income.
• Tolls & Parking: While Minnesota doesn't have extensive toll roads, any parking fees incurred directly while actively performing deliveries are deductible.
• Phone & Data Plan: The portion of your cell phone and data plan used for DoorDash deliveries is deductible. Keep a log of business use to accurately calculate the percentage.
• Vehicle-Related Costs: Expenses like car washes (especially important during Minnesota winters to combat road salt!), phone mounts, insulated food bags, and dash cams are deductible as business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, and 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 similar platforms classify you as an independent contractor, they do not withhold these taxes from your earnings. Therefore, it is your responsibility to calculate and pay this tax, typically through estimated tax payments throughout the year, to avoid penalties.