DoorDash Dasher Taxes in New Mexico - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in New Mexico

Navigating the Land of Enchantment as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from DoorDash are considered self-employment income, requiring careful attention during tax season.

The IRS requires all DoorDash drivers to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Furthermore, because no taxes are withheld from your DoorDash payments, you’ll likely owe self-employment tax – the combined Social Security and Medicare taxes for individuals who work for themselves. Accurate record-keeping throughout the year is crucial for maximizing deductions and minimizing your tax liability.

How New Mexico Handles Gig Worker Taxes

As a resident of New Mexico, you are required to file a state income tax return, even if your only income is from DoorDash. New Mexico utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, New Mexico’s primary form for reporting self-employment income is Form W-4 and Form SCR-2885, Schedule of Receipts and Expenses. New Mexico also requires you to pay state income tax on your net self-employment earnings. The state tax rates for 2025 will be based on your taxable income, ranging from 1.7% to 4.9% (rates are subject to change, so always verify with the New Mexico Taxation and Revenue Department). It’s important to note that New Mexico does not offer a specific deduction for the federal self-employment tax when calculating state taxable income. Therefore, the full amount of self-employment tax paid will be factored into your overall federal adjusted gross income (AGI), which then impacts your New Mexico state tax calculation. New Mexico also has provisions for estimated tax payments if you expect to owe more than $1,000 in state income tax. Failing to make these payments could result in penalties. Staying informed about New Mexico’s tax laws is essential for all gig workers.

For more information and resources, please visit the New Mexico Taxation and Revenue Department: https://www.tax.newmexico.gov/

Top Tax Deductions for New Mexico Drivers

• Standard Mileage: The most popular and often most beneficial deduction. The 2025 rate is 70 cents per mile. Given New Mexico’s relatively expansive geography and the distances often driven for deliveries, especially in rural areas, the standard mileage rate is likely to be a substantial deduction.
• Tolls & Parking: While New Mexico doesn’t have extensive toll road systems, any tolls incurred during deliveries are deductible. Parking fees directly related to DoorDash deliveries are also deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that you use for DoorDash. Keep records of your total bill and estimate the business use percentage.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot bags used for deliveries are all deductible 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, and it’s your responsibility as a self-employed individual to pay both the employer and employee portions. DoorDash and other gig platforms do not withhold these taxes from your earnings, so it’s crucial to set aside funds throughout the year to cover this liability when you file your taxes.