DoorDash Dasher Taxes in Vermont - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Vermont

Delivering for DoorDash across the Green Mountains and charming towns of Vermont offers flexibility, but also comes with tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

The IRS requires DoorDash Dashers 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 Vermont Handles Gig Worker Taxes

As a resident of Vermont, a state income tax return is required, regardless of income level. Vermont utilizes a graduated income tax system, meaning the tax rate increases as your income rises. This means the more you earn delivering for DoorDash, the higher percentage of your income will be taxed. Vermont considers income from DoorDash and other gig work as self-employment income, subject to both state income tax and potential adjustments to your federal adjusted gross income (AGI). The primary form for self-employed individuals to report income and calculate tax liability is Form INC-100, Individual Income Tax Return. Vermont also requires Schedule SE-V, Self-Employment Income, to be filed alongside Form INC-100. Vermont generally conforms to federal tax laws, but it's important to stay updated on any state-specific changes. Vermont also offers various credits and deductions that may reduce your tax liability. It is important to note that Vermont requires estimated tax payments if you expect to owe $500 or more in state income tax. Failing to make these payments can result in penalties. For the most up-to-date information and resources, please visit the Vermont Department of Taxes website: https://tax.vermont.gov/

Top Tax Deductions for Vermont 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 Vermont's rural landscape and potential for longer delivery distances, maximizing this deduction can significantly reduce your tax burden.
• Tolls & Parking: While Vermont doesn't have extensive toll roads, any parking fees incurred directly while actively delivering orders are deductible. Keep detailed records of these expenses.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for DoorDash deliveries. 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, insulated food bags, and dash cams are deductible as business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, and 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 when you file your federal tax return. The 15.3% applies to your net earnings – your total DoorDash income minus your business deductions (like mileage and expenses).