DoorDash Dasher Taxes in Oregon - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Oregon

Navigating the scenic byways and bustling cities of Oregon as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

The IRS requires all DoorDash Dashers to report their earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing federal taxes. Earnings over $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your DoorDash payouts.

How Oregon Handles Gig Worker Taxes

As a resident of Oregon, a state income tax return is required, even if no federal tax is owed. Oregon utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily use Form OR-40, Oregon Individual Income Tax Return, to report their income. DoorDash income, reported on your federal Schedule C, will flow to your Oregon return. Oregon also allows for itemized deductions, which may be beneficial depending on your overall financial situation. It's important to note that Oregon does not have a separate self-employment tax calculation; the federal self-employment tax is factored into your overall Oregon income tax liability. Furthermore, Oregon offers various credits and deductions that could reduce your tax burden, such as the Working Family Benefit. Keep meticulous records of all income and expenses to ensure accurate reporting and maximize potential savings. The Oregon Department of Revenue provides comprehensive resources and tools for self-employed individuals.

You can find more information and resources on the Oregon Department of Revenue website: Oregon Department of Revenue

Top Tax Deductions for Oregon Drivers

• Standard Mileage: The most popular deduction for DoorDash Dashers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Oregon's diverse terrain and potential for significant mileage, this deduction can substantially reduce taxable income.
• Tolls & Parking: While Oregon doesn't have widespread toll roads, any parking fees incurred directly while performing deliveries are deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for DoorDash deliveries. Keep a log of business use to support this deduction.
• Vehicle-Related Costs: Expenses like car washes (to maintain a professional appearance), 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, oil changes, repairs, and insurance) in the same tax year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Because DoorDash and other gig platforms do not withhold these taxes from your earnings, it’s your responsibility to calculate and pay them, typically through estimated quarterly tax payments to the IRS. This ensures compliance and avoids potential penalties at tax time.