Updated for 2026 (Filing 2025 Taxes)
Delivering for DoorDash across the Granite State, from the White Mountains to the Seacoast, offers flexibility, but also comes with tax responsibilities. As a DoorDash driver, you're considered an independent contractor, meaning you're responsible for tracking your earnings and paying all applicable taxes.
The IRS requires independent contractors to report income earned through Form 1099-NEC on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare, which DoorDash does not withhold. Proper record-keeping throughout the year is essential to accurately calculate your tax liability and maximize potential deductions.
New Hampshire is unique in that it does not have a broad-based income tax. This means Dashers won't owe state income tax on their earnings. However, this does not exempt you from federal income tax or self-employment tax obligations. The lack of state income tax makes diligent federal tax planning even more important. While New Hampshire doesn't tax wages or salaries, it does levy taxes on interest and dividends. DoorDash earnings, classified as self-employment income, fall under federal jurisdiction. Many New Hampshire residents appreciate the state's fiscal conservatism, and the absence of a state income tax is a significant factor in the state's economic appeal. This also means there are no state-specific forms or deductions related to gig work beyond what is required at the federal level. It's important to remember that even without state income tax, accurate reporting to the IRS is mandatory, and penalties for underpayment can be substantial. New Hampshire's Department of Revenue Administration provides resources for understanding federal tax obligations, even in the absence of state income tax: New Hampshire Department of Revenue Administration.
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.
As an independent contractor, you're responsible for paying self-employment tax, which covers both Social Security and Medicare. This combined tax rate is 15.3% on net earnings over $400. DoorDash and other gig platforms do not withhold these taxes, so it’s crucial to set aside funds throughout the year to cover this liability. You may be able to deduct one-half of your self-employment tax from your gross income.
Estimate your taxes using current IRS rules.
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*Disclaimer: This is a simplified estimate. Includes SE Tax, State Tax, and QBI Deduction impact. Consult a CPA.
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