DoorDash Dasher Taxes in Austin, Texas - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Austin, Texas

Navigating the vibrant streets of Austin as a DoorDash Dasher offers flexibility, but it also comes with tax responsibilities. Delivering tacos on South Congress or late-night eats near the University of Texas means income, and that income is taxable. As an independent contractor, DoorDash does not withhold taxes from your earnings, meaning you're responsible for reporting your income and paying all applicable taxes.

The IRS requires Dashers to report their earnings on Schedule C (Profit or Loss from Business) as part of their Form 1040. This income is also subject to self-employment tax, which covers both Social Security and Medicare taxes. Proper record-keeping throughout the year is crucial for accurate tax filing.

How Texas Handles Gig Worker Taxes

The big perk in the Lone Star State is no personal income tax. However, be aware of the Texas Franchise Tax. While it has a high threshold (over $1.2 million) that rarely applies to solo gig workers, it's a key part of the state's business tax structure. As a DoorDash driver operating in Austin, you won’t face state income tax on your earnings, but you are still responsible for federal income and self-employment taxes. Texas considers income earned through gig work as business income, and while there's no state income tax to file, maintaining accurate records of your earnings and expenses is still vital. Austin’s growing population and frequent events often lead to high demand for delivery services, potentially increasing earnings, and therefore, the importance of diligent tax preparation. Be mindful of parking regulations in busy areas like downtown Austin and the Domain, as parking tickets are not tax-deductible. The Texas Comptroller of Public Accounts provides resources for businesses, including information on the Franchise Tax and other relevant regulations: Texas Comptroller.

Top Tax Deductions for Austin, Texas Drivers

• Standard Mileage: The #1 deduction. The 2025 rate is 70 cents/mile. With relatively lower gas prices in Texas compared to states like California, the standard mileage rate is often the most advantageous method for DoorDash drivers in Austin.
• Tolls & Parking: Austin utilizes the TxTag system for toll roads. Keep detailed records of all toll expenses incurred while dashing, as these are deductible. Parking fees, especially those incurred while actively waiting for or completing deliveries, are also deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for business purposes. 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 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 largest deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax covers both Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as a DoorDash driver, you are responsible for paying both the employer and employee portions of these taxes. This applies to net earnings over $400. Remember to factor this into your tax planning throughout the year to avoid a large tax bill when filing.