DoorDash Dasher Taxes in Philadelphia, Pennsylvania - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Philadelphia, Pennsylvania

Navigating the bustling streets of Philadelphia as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. Delivering cheesesteaks and water ice comes with the need to accurately report earnings and manage potential deductions.

As a DoorDash driver, you are considered an independent contractor by the IRS. This means you’ll receive a Form 1099-NEC detailing your earnings, and you are responsible for reporting this income on Schedule C (Profit or Loss From Business) when filing your federal income tax return. Furthermore, independent contractors are subject to self-employment tax, covering both Social Security and Medicare taxes, which are not automatically withheld from your DoorDash payments.

How Pennsylvania Handles Gig Worker Taxes

As a resident of Pennsylvania, you are required to file a state income tax return, even if no state taxes were withheld. Pennsylvania operates under a flat income tax rate of 3.07% for the 2025 tax year. This applies to your net earnings from DoorDash, after deducting allowable business expenses. The primary form for self-employed individuals to report income and calculate tax liability is the Pennsylvania Schedule C-EZ (or Schedule C if your business is more complex). This form is filed along with Pennsylvania Form PA-40, the Resident Income Tax Return.

Philadelphia, being a major city, presents unique considerations. Parking can be challenging and expensive, and those parking expenses are potentially deductible (see section below). Demand fluctuates significantly based on time of day and location – understanding peak hours around Center City, University City, and during events at the stadiums can maximize earnings, but also potentially increase mileage. Be mindful of any city-specific regulations regarding commercial vehicle operation or delivery zones. It's crucial to maintain accurate records of all deliveries made within Philadelphia to support mileage claims. The Pennsylvania Department of Revenue provides comprehensive information and resources for taxpayers, including gig workers, at https://www.revenue.pa.gov/.

Top Tax Deductions for Philadelphia, Pennsylvania Drivers

• Standard Mileage: The most popular and often simplest deduction. The 2025 rate is 70 cents per mile for business use of your vehicle. Given Philadelphia’s traffic and density, this can add up significantly.
• Tolls & Parking: Philadelphia has limited toll roads, but parking costs, especially in Center City and near popular restaurants, can be substantial. Keep detailed records of all parking fees and any tolls incurred while actively dashing.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for DoorDash deliveries. If you use your phone 75% for DoorDash, you can deduct 75% of the bill.
• Vehicle-Related Costs: Expenses like car washes (to maintain a professional appearance), phone mounts, insulated food bags, and dash cams are all potentially deductible as business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas, oil changes, 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 an independent contractor, you are responsible for paying both the employer and employee portions. This combined rate is 15.3% on your net earnings exceeding $400. You can reduce your adjusted gross income (AGI) by one-half of your self-employment tax liability.