DoorDash Dasher Taxes in South Carolina - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in South Carolina

Delivering for DoorDash across the Palmetto State 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 all DoorDash drivers 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, covering both Social Security and Medicare contributions, which are not automatically withheld from your DoorDash payouts.

How South Carolina Handles Gig Worker Taxes

As a resident of South Carolina, you are required to file a state income tax return, even if no state income tax is due. South Carolina employs a graduated income tax system, meaning the tax rate increases as your income rises. This is important for DoorDash drivers as fluctuating earnings can push you into different tax brackets. The primary form for self-employed individuals to report income and calculate tax liability is Form SC1040. South Carolina also allows for itemized deductions, which can potentially lower your taxable income. Keep meticulous records of all income and expenses throughout the year. Furthermore, South Carolina requires you to pay estimated taxes quarterly if you expect to owe $100 or more in state income tax. Failing to do so can result in penalties. The South Carolina Department of Revenue provides detailed information and resources for self-employed individuals; you can find them at https://www.sc.gov/revenue. Remember to consult the latest tax brackets and regulations published by the SCDOR, as these are subject to change annually. Understanding these nuances is vital for accurate tax filing and avoiding potential issues with the state.

Top Tax Deductions for South Carolina Drivers

• Standard Mileage: The most popular deduction for DoorDash drivers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. This simplifies expense tracking significantly.
• Tolls & Parking: While South Carolina doesn't have extensive toll roads, any tolls incurred while actively delivering, along with parking fees directly related to deliveries, are deductible.
• Phone & Data Plan: If you use your personal phone for DoorDash, you can deduct the percentage of your monthly bill that corresponds to business use. Keep a log of the time spent dashing versus personal use to justify the deduction.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, 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, repairs, 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 through estimated tax payments or when you file your annual tax return. The 15.3% applies to your net earnings – your total earnings minus your business expenses.