DoorDash Dasher Taxes in Mississippi - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Mississippi

Delivering for DoorDash across the Magnolia State offers flexibility, but it also comes with tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

The IRS requires DoorDash Dashers to report their earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing their federal income tax return. Earnings over $400 necessitate the payment of self-employment taxes, which cover both Social Security and Medicare contributions. Proper record-keeping throughout the year is essential to accurately calculate income and eligible deductions.

How Mississippi Handles Gig Worker Taxes

As a resident of Mississippi, a state income tax return is generally required, even if no state income tax is ultimately due. Mississippi operates under a flat income tax rate, meaning all income is taxed at the same percentage. For the 2025 tax year, the Mississippi income tax rate is 5%. Self-employed individuals, including DoorDash Dashers, will report their income and calculate their tax liability using Form 83-101, the Mississippi Individual Income Tax Return. It's important to note that Mississippi does not offer a separate form specifically for gig workers; the standard individual income tax form is used, but Schedule C information from the federal return will be necessary to accurately complete the state return. Mississippi also allows for itemized deductions similar to the federal level, which can potentially reduce your state tax liability. Keep detailed records of all income and expenses to maximize potential savings. The Mississippi Department of Revenue provides resources and guidance for taxpayers, including information on filing requirements and available forms. Remember to file your state return by the applicable deadline, typically coinciding with the federal tax deadline, to avoid penalties and interest.

You can find more information and resources on the Mississippi Department of Revenue website: https://www.dor.ms.gov/

Top Tax Deductions for Mississippi 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 Mississippi’s generally reasonable gas prices, the standard mileage rate is likely to be the most beneficial option for most Dashers.
• Tolls & Parking: While Mississippi doesn’t have extensive toll road systems, any tolls incurred while actively dashing are deductible. Parking fees directly related to deliveries are also 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, phone mounts, insulated food bags, and dash cams used specifically for DoorDash deliveries are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, or repairs) in the same year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax covers both Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as a self-employed individual, you are responsible for paying both the employer and employee portions. This combined rate is 15.3% on net earnings exceeding $400. Remember to factor this into your tax planning throughout the year.