DoorDash Dasher Taxes in Missouri - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Strategic Tax Management for DoorDash Dashers in Missouri

Operating as a DoorDash Dasher in the "Show-Me State" places you in the role of an independent business owner. While this offers significant autonomy, it requires a sophisticated approach to tax liability mitigation. As an independent contractor, you are not an employee; rather, you are a sole proprietor in the eyes of the IRS and the Missouri Department of Revenue. This status necessitates proactive planning to avoid underpayment penalties and to maximize your after-tax earnings.

For federal purposes, your DoorDash income must be reported on Schedule C (Profit or Loss From Business). Beyond standard income tax, you are subject to Self-Employment (SE) tax - currently 15.3% - which covers the employer and employee portions of Social Security and Medicare. This tax applies to all net earnings exceeding $400. However, by leveraging high-level deductions and the Missouri-specific tax code, you can significantly reduce your effective tax rate.

Missouri State Tax Nuances and Local Obligations

Missouri utilizes a progressive income tax system, though recent legislative changes have trended toward lower rates. For the 2025 tax year, the top individual income tax rate is capped at 4.95%. Dashers will file Form MO-1040, but there are two critical Missouri-specific factors to consider:

• Federal Income Tax Deduction: Missouri is one of the few states that allows you to deduct a portion of your federal income tax liability from your state taxable income. This provides a secondary layer of relief for high-earning Dashers.
• Local Earnings Taxes: If you perform deliveries within the city limits of St. Louis or Kansas City, you are subject to a 1% local earnings tax. This is often overlooked by gig workers and can result in back-taxes and interest if not addressed during the filing process.

Maximizing the Qualified Business Income (QBI) Deduction

One of the most powerful tools in a Dasher’s arsenal is the Section 199A Qualified Business Income (QBI) deduction. Most Missouri Dashers qualify to deduct up to 20% of their net business income from their federal taxable income. This is a "below-the-line" deduction, meaning it reduces your taxable income regardless of whether you take the standard deduction or itemize. When combined with Missouri’s relatively low state rates, the QBI deduction can drastically lower your total tax burden.

Strategic Expense Selection: Standard Mileage vs. Actual Expenses

The decision of how to deduct vehicle costs is the single most important financial choice a Dasher makes. Missouri's geographic diversity - from the urban density of St. Louis to the sprawling outskirts of Springfield - means your driving patterns dictate your best strategy.

Using our Advanced Calculator, you can now perform a side-by-side comparison of the two primary methods:

• Standard Mileage Rate: For 2025, the IRS rate is 70 cents per mile. This covers gas, insurance, and wear-and-tear. In Missouri, where fuel prices often trend below the national average, the standard mileage rate frequently provides a larger "paper loss" than actual out-of-pocket costs.
• Actual Expenses and Depreciation: If you drive a newer or high-value vehicle, calculating actual expenses may be superior. This includes fuel, repairs, insurance, and Section 179 Depreciation. Our calculator allows you to input these variables to determine if "accelerated depreciation" provides a better immediate tax shield than the mileage rate.

The Home Office and Administrative Deductions

Many Dashers fail to claim the Home Office Deduction, assuming it only applies to remote office workers. However, if you use a dedicated space in your Missouri home exclusively for administrative tasks - such as bookkeeping, reviewing earnings statements, or scheduling shifts - you may qualify. Our Advanced Calculator includes a module to help you determine the square footage percentage or the "Simplified Method" (typically $5 per square foot up to 300 sq. ft.) to further decrease your Schedule C net profit.

Essential Deductions for the Modern Dasher

• Communications: A prorated portion of your cell phone bill and data plan. If 50% of your phone use is for DoorDash, 50% of the cost is deductible.
• Operating Gear: Hot bags, phone mounts, portable chargers, and dash cams are 100% deductible as "ordinary and necessary" business expenses.
• Road Tolls and Parking: While rare in rural Missouri, tolls on the Lake of the Ozarks Community Bridge or parking fees in downtown Kansas City are fully deductible. Note: Commuting from your home to your first delivery zone is generally not deductible, but travel between deliveries is.

Quarterly Estimated Payments

Because DoorDash does not withhold taxes, the IRS expects you to pay as you go. If you expect to owe more than $1,000 in federal tax, you should make quarterly estimated payments (Form 1040-ES). Failure to do so can result in an underpayment penalty. We recommend using our calculator at the end of every quarter to ensure your Missouri state and federal obligations are met accurately.