DoorDash Dasher Taxes in Texas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Texas

Navigating the bustling streets of cities like Austin, Dallas, and Houston 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 careful attention during tax season.

The IRS requires all DoorDash Dashers to report their income on Schedule C (Profit or Loss from Business) when filing federal taxes. Crucially, this income is also subject to self-employment tax, which covers both Social Security and Medicare taxes. Unlike traditional employment, DoorDash and other platforms do not withhold these taxes, meaning Dashers are responsible for paying them directly to the IRS.

How Texas Handles Gig Worker Taxes

The big perk in the Lone Star State is no personal income tax. This means Texas residents don’t have to worry about state income tax on their DoorDash earnings. However, be aware of the Texas Franchise Tax. While it has a high threshold (over $1.2 million in revenue) that rarely applies to solo gig workers operating as sole proprietorships or single-member LLCs, it's a key part of the state's business tax structure. Even though most Dashers won't meet this threshold, understanding its existence is important. Texas does not have a specific tax form for gig workers beyond the standard business tax obligations if revenue exceeds the franchise tax threshold. Dashers should maintain accurate records of all income and expenses, as Texas is a business-friendly state that generally focuses on compliance through reporting rather than aggressive enforcement for small-scale independent contractors. It's always prudent to consult with a tax professional to ensure full compliance with Texas tax laws, especially if business operations expand or become more complex.

For more information on Texas taxes, visit the Texas Comptroller of Public Accounts website.

Top Tax Deductions for Texas Drivers

• Standard Mileage: The #1 deduction for most Dashers. The 2025 rate is 70 cents per mile. With generally lower gas prices in Texas compared to states like California, the standard mileage rate often provides a significant tax benefit, simplifying record-keeping.
• Tolls & Parking: Texas has extensive toll road systems, including those around major cities like San Antonio and Fort Worth. Keep detailed records of all toll expenses and any parking fees incurred while actively dashing. TxTag and other electronic toll payment systems can help streamline record-keeping.
• Phone & Data Plan: The percentage of your phone and data plan used for DoorDash deliveries is deductible. If you use your phone 75% for DoorDash, you can deduct 75% of the bill.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, insulated food bags, and dash cams are deductible as business expenses. Keep receipts for all purchases.

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

Self-employment tax is comprised of Social Security and Medicare taxes. When you work for an employer, these taxes are split between you and your employer. As a self-employed individual, you are responsible for paying the full 15.3% on net earnings over $400. This is a significant tax obligation, so accurate income tracking and maximizing deductions are crucial to minimize your tax liability.