DoorDash Dasher Taxes in Montana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Montana

Delivering for DoorDash across the Big Sky Country 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 Montana Handles Gig Worker Taxes

As a resident of Montana, a state income tax return is required, regardless of income level. Montana utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Montana’s income tax brackets are subject to adjustment for inflation, but generally range from 1% to 6.75%. DoorDash income is considered taxable income and must be reported. The primary form for self-employed individuals to report income and calculate tax liability is Form 2 (Montana Individual Income Tax Return). Montana also allows for itemized deductions similar to the federal level, which can help reduce your overall tax burden. It's important to note that Montana's tax laws are subject to change, so staying updated is vital. The Montana Department of Revenue provides comprehensive information and resources for taxpayers, including details on self-employment income and deductions. Montana also offers a credit for taxes paid to another state, which may be relevant if you dash in neighboring states. Remember to keep accurate records of all income and expenses related to your DoorDash activity to ensure accurate reporting and maximize potential deductions.

You can find more information on Montana's tax laws and forms at the Montana Department of Revenue.

Top Tax Deductions for Montana Drivers

• Standard Mileage: The #1 deduction for most Dashers. The 2025 rate is 70 cents per mile. Given Montana’s vast distances and often rural delivery areas, the standard mileage rate is likely to be a significant benefit.
• Tolls & Parking: While Montana doesn't have extensive toll roads, any parking fees incurred directly while actively dashing are deductible.
• Phone & Data Plan: The percentage of your phone and data plan used for DoorDash deliveries is deductible. Keep a log of business use to support this claim.
• Vehicle-Related Costs: Expenses like car cleaning supplies, 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 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 DoorDash Dasher, you are responsible for paying both the employer and employee portions, totaling 15.3% on net earnings exceeding $400. This is paid through self-employment tax forms when filing your federal income tax return.