DoorDash Dasher Taxes in Houston, Texas - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Houston, Texas

Navigating the bustling streets of Houston as a DoorDash Dasher offers flexibility, but it also comes with tax responsibilities. Delivering everything from Tex-Mex to Vietnamese cuisine requires understanding how your earnings are taxed.

As an independent contractor for DoorDash, the IRS considers you self-employed. This means you’re responsible for reporting your income on Schedule C (Profit or Loss from Business) with your Form 1040, and paying self-employment taxes – covering both Social Security and Medicare – on any net earnings over $400. Keeping accurate records throughout the year is crucial for a smooth tax filing process.

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. DoorDash drivers operating within Houston, and throughout Texas, won’t face state income tax on their earnings, but maintaining meticulous records of business expenses is still vital for maximizing deductions and minimizing federal tax liability. Consider the unique aspects of driving in Houston – frequent traffic congestion can increase mileage, and parking, even for quick drop-offs, can add up. These costs are potentially deductible. Furthermore, while Texas doesn’t have a state income tax, it’s important to understand that the Franchise Tax applies to entities earning over a certain amount of revenue, and while unlikely to affect most individual Dashers, it’s part of the overall state tax landscape. Staying informed about Texas tax laws, even those that don’t directly impact you currently, is a good practice. For more information on Texas taxes, visit the Texas Comptroller of Public Accounts website.

Top Tax Deductions for Houston, 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 Houston.
• Tolls & Parking: Houston drivers frequently encounter tolls on Beltway 8 and other roadways. Keep detailed records of all toll expenses, as these are deductible. Parking fees incurred while actively dashing are also deductible.
• Phone & Data Plan: The percentage of your phone and data plan used for DoorDash deliveries is deductible. If you use your phone 70% for DoorDash, you can deduct 70% 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

This tax covers both Social Security and Medicare taxes. Unlike traditional employment where your employer withholds these taxes, as a self-employed DoorDash driver, you are responsible for paying both the employer and employee portions, totaling 15.3% on net earnings over $400. You’ll typically pay this tax quarterly through estimated tax payments to avoid penalties.