TaskRabbit Taxes in Mississippi - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Mississippi

From helping folks move in Oxford to assembling furniture in Biloxi, being a TaskRabbit in Mississippi offers flexibility and income. However, that income comes with tax responsibilities. As an independent contractor, you're considered self-employed by the IRS, meaning you're responsible for reporting all earnings and paying applicable taxes.

The IRS requires all self-employed individuals earning over $400 to file a Schedule C (Profit or Loss from Business) with your Form 1040. This form details your income and expenses. Crucially, you’ll also need to calculate and pay self-employment tax, which covers both Social Security and Medicare taxes – taxes that are typically withheld from a regular paycheck but aren’t automatically deducted from your TaskRabbit earnings.

How Mississippi Handles Gig Worker Taxes

As a resident of Mississippi, you are required to file a state income tax return, even if no state income tax is due. Mississippi operates under a flat income tax system, meaning all income is taxed at the same rate. For the 2025 tax year, the flat tax rate is currently 5%. This rate is subject to change, so it’s important to verify the current rate when filing. Self-employed individuals in Mississippi will primarily use Form 83-101, the Mississippi Individual Income Tax Return, to report their income and calculate their tax liability. You’ll need to include your Schedule C profit (or loss) as part of your adjusted gross income on Form 83-101. Mississippi also allows for itemized deductions similar to the federal level, which can potentially reduce your state tax burden. Remember to keep accurate records of all income and expenses throughout the year to ensure accurate reporting. Mississippi does not have a separate self-employment tax form; the self-employment tax is calculated on the federal return and impacts your federal adjusted gross income, which then flows to the state return. It’s also important to note that Mississippi follows federal guidelines regarding income tax withholding, so you may need to make estimated tax payments throughout the year to avoid penalties. For more detailed information and resources, please visit the Mississippi Department of Revenue website: https://www.dor.ms.gov/

Top Tax Deductions for Mississippi Drivers

• Standard Mileage: The #1 deduction for TaskRabbits. The 2025 rate is 70 cents per mile. Given Mississippi’s relatively lower gas prices compared to states like California, the standard mileage rate is often a very advantageous option, simplifying record-keeping and maximizing your deduction.
• Tolls & Parking: While Mississippi doesn’t have extensive toll road systems, any tolls incurred while performing TaskRabbit work are deductible. Keep receipts for parking fees as well, especially if you frequently work in cities like Jackson or Gulfport where parking can be costly.
• Phone & Data Plan: If you use your phone for TaskRabbit-related tasks – communication with clients, navigation, accepting tasks – you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Consider expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, or insulated bags for food delivery tasks. These smaller expenses add up!

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

This 15.3% tax covers both Social Security and 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 estimated tax payments made quarterly to the IRS.