Is DoorDash Worth It After Taxes? Find Out Here! [2023]

Navigating the gig economy can be a daunting endeavor for both new and experienced, especially regarding taxes. For everyone wondering if DoorDash is worth the effort after taxes, this post will provide insight into how taxes might impact your final income in 2023. We’ll take a look at what taxes you should expect as a DoorDash driver, the best strategies for filing, and other helpful tips – so stay tuned to get an answer to that all-important question: Is DoorDash worth it after taxes?

What Is DoorDash?

DoorDash is the go-to source for online food delivery. Whether you’re looking for a fast bite or something more exquisite, this platform has it all! Customers in thousands of cities across the United States, Canada, and Australia can access amazing restaurants with just a few clicks from their app or website and have delicious meals delivered to their doorsteps quickly by experienced Dashers. Restaurants win big, too, as they partner up with DoorDash – leveraging its power to amplify awareness and gain new customers along the way.

How Much Money Can You Make on DoorDash?

DoorDash can be a great source of income for delivery drivers, or “Dashers,” depending on their location and the volume of deliveries available in the area. On average, Dashers make around $25 per hour—but this figure is subject to change based on many factors, including time of day and demand levels. Every order will come with a base pay rate plus any gratuity received from customers, which means you have complete control over your earnings potential!

Is DoorDash Worth It After Taxes?

If DoorDash is worth it, it will depend on your situation and how much you’re earning from using the platform. Since you are an independent contractor, remember that all of your income earned through DoorDash must be reported for tax purposes – including:

  • Self-employment tax: Self-employed individuals are responsible for paying a combined tax rate of 15.3%: 12.4% toward Social Security and 2.9% toward Medicare taxes.
  • Federal income tax: As DoorDash payouts accumulate, federal income taxes must be paid. Your total tax obligation will depend on your overall earnings and any applicable credits or deductions you’re eligible for.
  • State and local taxes: Depending on your jurisdiction, you may be liable for shelling out state and local taxes with regard to income derived through DoorDash. The amount of these taxes will be contingent upon the rates in effect in your area.

If you’re wondering whether DoorDash is a worthwhile endeavor after taxes, it’s important to consider your income from the platform and any expenses associated with working (e.g., gas, vehicle maintenance, insurance). Furthermore, you must factor in the amount of tax owed on your earnings and deductions or credits that may lessen your tax liability.


After considering the pros and cons of DoorDash, it’s clear that the platform could be a valuable way to earn some extra money in your free time. While you should keep in mind that taxes will still apply, you can use these points as a roadmap to assess whether DoorDash is a good fit for you. The key takeaway is that DoorDash could be an engaging side gig, provided you have the right setup and are willing to put in the hard work required. Whatever outcome you decide on, remember – nothing ventured, nothing gained. It never hurts to take calculated risks and test different methods until you find something that works for you!

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