DoorDash taxes for Dashers

The 1099-NEC

If you earn above the reporting threshold in a year, DoorDash (via its payments partner) issues a 1099-NECreporting your total earnings. Even if you don't receive a form — for example because you earned under the threshold — you're still required to report the income. Your own records of what you were paid are what ultimately matter.

Self-employment tax

Because you're self-employed, you owe self-employment tax — the Social Security and Medicare contributions that an employer would normally split with you. As of 2026 this is approximately 15.3% of your net self-employment earnings; verify the current IRS figure, as rates and wage caps change. This is on top of any ordinary federal and state income tax you owe.

The important word is net. Self-employment and income tax apply to your profit — earnings minus deductible business expenses like your mileage — not to your gross payouts. Tracking expenses directly lowers what you owe.

Quarterly estimated payments

The IRS expects taxes to be paid throughout the year, not in one lump at filing. If you'll owe a meaningful amount, you generally need to make quarterly estimated payments (commonly mid-April, mid-June, mid-September, and mid-January). Skipping them can trigger an underpayment penalty. Confirm the current due dates and thresholds with the IRS each year.

What to set aside

A common rule of thumb is to set aside roughly 25–30% of your net earnings for taxes, though your real number depends on your total income, filing status, and state. Moving that share into a separate account as you get paid is the simplest way to avoid a painful bill — and your mileage deduction often pulls the real figure lower than the headline percentage suggests.