DoorDash Dasher Taxes in Tennessee - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Tennessee

Navigating the vibrant streets of Nashville, Memphis, or Knoxville as a DoorDash Dasher offers flexibility, but it also comes with tax responsibilities. As an independent contractor, earnings from DoorDash are considered self-employment income, requiring diligent record-keeping and accurate tax filing.

The IRS requires all DoorDash Dashers to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare, which DoorDash does not withhold. Failure to properly account for these taxes can result in penalties and interest.

How Tennessee Handles Gig Worker Taxes

Tennessee offers a unique tax landscape for gig workers. The Volunteer State boasts no state income tax on wages or salaries, which includes income earned through platforms like DoorDash. However, this does not exempt Dashers from federal income tax obligations. All earnings are still subject to federal taxes, and the lack of state income tax means federal tax planning becomes even more critical. Tennessee does levy sales tax on certain services, but delivery services provided by Dashers generally fall outside of this scope. It's important to note that while Tennessee doesn't have a traditional income tax, it does have a Hall income tax on interest and dividends, which may be relevant if a Dasher has significant investment income. Furthermore, Tennessee's relatively low cost of living and property taxes can influence overall financial planning for independent contractors. Dashers should be aware of potential changes to Tennessee tax laws, as the state continually evaluates its revenue streams. Staying informed is key to maximizing tax efficiency.

For more information on Tennessee tax laws and resources, please visit the Tennessee Department of Revenue.

Top Tax Deductions for Tennessee Drivers

• Standard Mileage: The most popular and often most beneficial deduction. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Tennessee’s relatively stable gas prices, the standard mileage rate is likely to be a favorable option for most Dashers.
• Tolls & Parking: While Tennessee doesn’t have extensive toll roads, any tolls incurred during deliveries are deductible. Parking fees directly related to deliveries are also 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 detailed records of how often you use your phone for work.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, insulated food bags, and dash cams used specifically for DoorDash deliveries are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, or repairs) in the same tax year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

As a DoorDash Dasher, you are considered self-employed. This means you are responsible for paying both the employer and employee portions of Social Security and Medicare taxes. 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 plan for this expense throughout the year, potentially through quarterly estimated tax payments to the IRS.