DoorDash Dasher Taxes in Seattle, Washington - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Seattle, Washington

Navigating the steep hills of Queen Anne or the busy corridors of Capitol Hill as a DoorDash driver offers great flexibility, but it also places the burden of tax compliance squarely on your shoulders. As an independent contractor, the IRS views you as a small business owner. This means your earnings aren't just a paycheck: they're business receipts that require careful management and strategic deductions to protect your bottom line.

The core of your filing will involve reporting income on Schedule C (Profit or Loss from Business) alongside your Form 1040. Because DoorDash doesn't withhold taxes from your payouts, you're responsible for the 15.3% self-employment tax, which covers Social Security and Medicare. However, there's a significant silver lining: the Qualified Business Income (QBI) deduction. This often-overlooked provision allows many Seattle Dashers to deduct up to 20% of their net business income from their federal income taxes, provided they fall under specific income thresholds.

To ensure you're not overpaying, we recommend using our Advanced Calculator. It's designed to help you run the numbers on "Standard Mileage" versus "Actual Expenses" - including complex factors like vehicle depreciation - and can even help you determine if you qualify for Home Office savings for the administrative side of your delivery business.

How Washington Handles Gig Worker Taxes

Washington is one of the few states without a personal income tax, which is a major win for your take-home pay. However, the state makes up for this through the Business & Occupation (B&O) tax. While most gig workers won't owe B&O tax unless their gross annual receipts exceed $100,000, you are still generally required to register with the Department of Revenue if you hit certain thresholds or need a state business license.

The B&O tax is a gross receipts tax: it's calculated on your total revenue before you subtract expenses. For service-based businesses like delivery, the rate is 0.471%. Even if you don't reach the payment threshold, the City of Seattle has its own business licensing requirements. If you're "engaging in business" within city limits, you likely need a Seattle business license. Fortunately, if your annual gross income in Seattle is below a certain amount (currently $2,000), the license fee may be waived, but registration is still mandatory. Parking is another uniquely Seattle challenge. Whether you're dodging tickets in South Lake Union or paying for a spot near Pike Place, those costs are fully deductible business expenses that you must track religiously.

For more information, please visit the Washington State Department of Revenue: https://dor.wa.gov/

Top Tax Deductions for Seattle, Washington Drivers

• Standard Mileage vs. Actual Expenses: For 2025, the standard mileage rate is 70 cents per mile. However, because Washington has some of the highest fuel prices in the country, it's worth using our calculator to see if the "Actual Expenses" method - which includes gas, insurance, repairs, and depreciation - provides a larger tax break.
• Tolls and Parking: While the standard mileage rate covers the wear and tear on your car, it doesn't cover tolls on the SR 520 bridge or the I-405 express lanes. These, along with any parking fees paid while you're picking up or dropping off orders, are 100% deductible.
• Phone and Data Plan: You can't dash without a smartphone. You're entitled to deduct the business-use percentage of your phone bill. If you spend 60% of your time on your phone managing deliveries and 40% on personal use, you can deduct 60% of your monthly service fees.
• The QBI Deduction: As a "Pass-Through" entity, you may qualify for the 20% Qualified Business Income deduction. This is a powerful tool that reduces your taxable income, essentially letting you keep more of your Seattle earnings tax-free.
• Home Office Savings: If you use a dedicated space in your home to manage your books, schedule shifts, or organize your gear, you may be able to claim the Home Office deduction. Our Advanced Calculator can help you determine the square-footage value of this deduction.

Expert Tip: You must choose between Standard Mileage and Actual Expenses in the first year you use a vehicle for business. If you choose Actual Expenses the first year, you're stuck with it for the life of that vehicle. Most drivers find the Standard Mileage rate easier, but our calculator can help you spot the rare cases where Actual Expenses win out.

Understanding the 15.3% Self-Employment Tax

In a traditional W-2 job, your employer pays half of your Social Security and Medicare taxes. When you're the boss, you pay both halves, totaling 15.3%. It's a significant chunk, but remember: this tax is only applied to your net profit, not your total DoorDash payouts. This is why aggressive, legal deduction tracking is vital. By maximizing your mileage and equipment deductions, you lower the "net income" figure that the 15.3% tax is calculated against. To avoid "tax shock" in April, Seattle drivers should use our calculator to estimate their quarterly payments and set aside roughly 25-30% of their weekly earnings for the IRS.