# DoorDash Taxes in 2026: 1099-NEC, Mileage at 72.5¢/76¢ and the Tips Deduction | Gig Earnings Guide

> DoorDash withholds no tax. How the 1099-NEC works, the 2026 mileage rate (72.5¢ then 76¢), self-employment tax, quarterly payments and the tips deduction.

Source: https://gigearningsguide.com/guides/doordash-taxes-1099.html
Language: en
Publisher: Gig Earnings Guide (independent; not affiliated with any gig app)
Last updated: 2026-10-27
Cite as: "How do taxes work for DoorDash drivers?", Gig Earnings Guide, 2026, https://gigearningsguide.com/guides/doordash-taxes-1099.html
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[Guides](https://gigearningsguide.com/guides/) · Updated October 27, 2026 · 8 min read

# How do taxes work for DoorDash drivers?

**DoorDash does not withhold taxes, so Dashers report their earnings as self-employment income on Schedule C and pay income tax plus 15.3% self-employment tax on the profit.** The biggest deduction is usually mileage: 72.5¢ a mile for business miles driven January 1 to June 30, 2026, and 76¢ a mile from July 1 to December 31, 2026. Tips may also qualify for the new federal tips deduction (up to $25,000 a year, 2025–2028). DoorDash sends a 1099-NEC through the Dasher app by January 31.

## The forms you get from DoorDash

- **Form 1099-NEC** in the Dasher app (Earnings → View payout details → Tax documents) by January 31, or by mail if you opted out of e-delivery.
- **A separate tips total** by email by January 31. DoorDash started this because of the new tips deduction.
- **A mileage estimate** by email by January 31 for Dashers who drove a car. It covers only miles on deliveries.

**The $600 vs $2,000 question:** DoorDash's Help Center still says you get a 1099-NEC if you earned $600 or more. That was the IRS threshold for payments through 2025. For payments made in 2026 the IRS threshold is $2,000, so a Dasher who earned less in 2026 may not get a form. Either way, **all of your earnings are taxable**, with or without a 1099.

![A car instrument cluster with the odometer reading 140,000 miles](https://gigearningsguide.com/images/doordash_odometer.jpg)

Write down your odometer reading on January 1, June 30/July 1 and December 31. Those readings anchor your mileage log. Photo: [ParentingPatch](https://commons.wikimedia.org/wiki/File:Car_Odometer_140000_Miles.JPG), [CC BY-SA 3.0](https://creativecommons.org/licenses/by-sa/3.0/), resized.

**Go deeper.** Chapter 11 of the DoorDash Dasher Playbook covers taxes, mileage and records end to end, including the split 2026 mileage rate, the tips deduction and quarterly payments.

[Get the DoorDash e-book · $12.99](https://gigearningsguide.com/books/doordash-dasher-playbook.html#buy) [Read chapters 1–2 free](https://gigearningsguide.com/books/doordash-dasher-playbook-free-chapters.html)

## Mileage: the biggest deduction

| Business miles driven | IRS standard rate |
|---|---|
| January 1 – June 30, 2026 | 72.5¢ per mile |
| July 1 – December 31, 2026 | 76¢ per mile |

Because the rate changed mid-year, keep your log split by date. DoorDash's mileage estimate covers only miles on active deliveries. Driving to your starting point, moving between zones and driving back after a far drop-off can also be business miles, but they will not be in DoorDash's number. A mileage app or a written log with date, start and end odometer and purpose is your record. More detail: [the mileage deduction guide](https://gigearningsguide.com/guides/instacart-mileage-deduction.html) (written for Instacart; the rules are the same).

California Dashers: the $0.37 per mile under Prop 22 is pay, not a reimbursement. DoorDash itself advises California Dashers to keep tracking all mileage for taxes.

## Illustrative example

Say a single Dasher earned $24,000 in 2026 (including $8,000 in tips) and drove 9,000 business miles, 4,500 in each half of the year.

- Mileage deduction: 4,500 × $0.725 + 4,500 × $0.76 = **$6,682.50**
- Other expenses (phone share, hot bags, etc.): assume $500
- Net profit: $24,000 − $6,682.50 − $500 = **$16,817.50**
- Self-employment tax: $16,817.50 × 92.35% × 15.3% ≈ **$2,376**

Income tax then depends on your other income, deductions and the tips deduction below. These figures only show the method.

## Other deductions Dashers commonly take

- The business share of your phone and data plan.
- Hot bags, a phone mount, chargers and other gear used for dashing.
- Tolls and parking while dashing (on top of the standard mileage rate).
- Fast Pay fees and the business share of mileage-tracking apps.

If you use the standard mileage rate, you cannot also deduct gas, repairs, insurance or depreciation for that car. See [common deductions for gig workers](https://gigearningsguide.com/guides/instacart-tax-deductions.html).

## The tips deduction (2025–2028)

The 2025 tax law created a federal income tax deduction of up to **$25,000 a year** for qualified tips, for 2025 through 2028. It phases out above $150,000 of modified AGI ($300,000 for joint filers), you do not need to itemize, and for the self-employed it cannot exceed your net profit from the work that earned the tips. The final IRS rules (April 2026) list goods delivery workers, including app-based delivery, among qualifying occupations. Voluntary tips through the app are typically qualified tips. The deduction cuts income tax only; tips still count for self-employment tax. Full detail: [no tax on tips](https://gigearningsguide.com/guides/instacart-no-tax-on-tips.html).

## Quarterly estimated payments

If you expect to owe $1,000 or more for the year, the IRS expects estimated payments. For 2026 income the due dates are April 15, June 15 and September 15, 2026, and January 15, 2027. A simple habit is to move a fixed share of each payout (many drivers use 20–25%, depending on their bracket) into a separate account. How to work out the amount: [quarterly taxes for gig workers](https://gigearningsguide.com/guides/instacart-quarterly-taxes.html).

## Watch: setting money aside for taxes

Daring Dave walks through how he calculates self-employment tax, estimates his federal tax and decides how much of his DoorDash earnings to set aside each month. The creator says it is not financial advice; use it as a worked example, then run your own numbers.

[![Video thumbnail: How I Calculate My DoorDash Taxes (Step-by-Step)](https://i.ytimg.com/vi/ifYyTMicUYg/hqdefault.jpg) 13:55](https://www.youtube.com/watch?v=ifYyTMicUYg)

**How I Calculate My DoorDash Taxes (Step-by-Step)** · Daring Dave · published March 5, 2026 · [Watch on YouTube](https://www.youtube.com/watch?v=ifYyTMicUYg)

## Records to keep

- Your 1099-NEC and DoorDash's tips email, plus monthly earnings statements from the app.
- A mileage log split at June 30/July 1.
- Receipts for gear, phone and tolls.
- Records of reimbursements (for example cash orders): DoorDash says reimbursements are not included in 1099 earnings.

General information, not tax advice. Rules depend on your situation; confirm with a CPA or Enrolled Agent and check current figures on IRS.gov.

## Frequently asked questions

**Does DoorDash take out taxes?**

No. DoorDash does not withhold any tax. Dashers are independent contractors and pay income tax and self-employment tax themselves, usually through quarterly estimated payments.

**What is the 2026 mileage rate for DoorDash drivers?**

The IRS standard rate is 72.5 cents per business mile from January 1 to June 30, 2026, and 76 cents per mile from July 1 to December 31, 2026.

**Will I get a 1099 from DoorDash if I earned under $600?**

DoorDash's help page uses $600. For payments made in 2026, the IRS threshold for Form 1099-NEC is $2,000, so a form may not arrive below that. The income is taxable either way.

**Is DoorDash's mileage email enough for taxes?**

It only estimates miles on active deliveries. Miles to your starting point, between zones and back from far drop-offs are not included, so keep your own log.

**Do Dashers qualify for no tax on tips?**

The final IRS rules list goods delivery, including app-based delivery workers, among qualifying occupations, and self-employed workers can qualify. Confirm your situation with a tax professional.

**Go deeper.** Chapter 11 of the DoorDash Dasher Playbook covers taxes, mileage and records end to end, including the split 2026 mileage rate, the tips deduction and quarterly payments. [Get the DoorDash e-book](https://gigearningsguide.com/books/doordash-dasher-playbook.html#buy) or [read chapters 1–2 free](https://gigearningsguide.com/books/doordash-dasher-playbook-free-chapters.html).

## Related guides

- [How does DoorDash pay Dashers in 2026?](https://gigearningsguide.com/guides/doordash-pay-explained.html)
- [Which DoorDash offers are worth accepting?](https://gigearningsguide.com/guides/doordash-which-offers-to-accept.html)
- [How do you appeal a DoorDash deactivation?](https://gigearningsguide.com/guides/doordash-deactivation-appeal.html)

## Sources

- [DoorDash Help Center: Dasher Guide to Taxes](https://help.doordash.com/en-us/dashers/article/common-dasher-tax-questions)
- [IRS: Standard mileage rates](https://www.irs.gov/tax-professionals/standard-mileage-rates)
- [IRS: Internal Revenue Bulletin 2026-29 (mid-year mileage rate)](https://www.irs.gov/irb/2026-29_irb)
- [IRS: Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec)
- [IRS: Working Families Tax Cuts provisions (qualified tips deduction)](https://www.irs.gov/newsroom/working-families-tax-cuts)
- [IRS: Self-employment tax](https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes)
- [IRS: Estimated taxes](https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes)

By the Gig Earnings Guide Editorial Team. Independent publication; not affiliated with, endorsed by or sponsored by DoorDash, Inc.. Rates and rules change; check the official sources above.

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