DoorDash Dasher Taxes in Virginia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Virginia

Navigating the scenic routes of Virginia as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

The IRS requires all DoorDash drivers to report their earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing their federal income tax return. Furthermore, earnings exceeding $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 Virginia Handles Gig Worker Taxes

As a resident of Virginia, a state income tax return is required, regardless of income level. Virginia operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily use Virginia Form 540, the Individual Income Tax Return, to report their earnings. The income from your DoorDash deliveries, reported on your federal Schedule C, will be transferred to your Virginia Form 540. Virginia also allows for deductions similar to the federal level, potentially reducing your state tax liability. It's important to note that Virginia does not offer a standard mileage deduction for state income tax purposes; instead, you must calculate your business use of your vehicle based on actual expenses. This means meticulously tracking mileage and associated costs like gas, oil changes, repairs, and insurance. Virginia also has a state estimated tax requirement. If you expect to owe $1,000 or more in Virginia income tax, you generally need to make quarterly estimated tax payments to avoid penalties. Resources and detailed information regarding Virginia state taxes can be found on the Virginia Department of Taxation website: https://www.tax.virginia.gov/. Staying informed about Virginia’s tax laws is essential for accurate filing and avoiding potential issues.

Top Tax Deductions for Virginia Drivers

• Standard Mileage: The most popular deduction for federal taxes. The 2025 rate is 70 cents per mile. Given Virginia's relatively moderate gas prices compared to states like California or Washington, the standard mileage rate often provides a significant benefit for federal deductions.
• Tolls & Parking: Virginia drivers frequently encounter tolls on I-95 and other major roadways. Keep detailed records of all toll expenses and any parking fees incurred while actively delivering for DoorDash.
• Phone & Data Plan: The portion of your monthly phone and data plan used for DoorDash deliveries is deductible. Maintain a log documenting the percentage of business use.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, insulated food bags, and dash cams are deductible as business expenses. Retain 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 greater tax benefit.

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 is your responsibility to calculate and pay them directly to the IRS, typically through quarterly estimated tax payments. This is in addition to your regular income tax liability.