15.3% (Social Security & Medicare)
2.9% (Medicare Only – if SS limit reached)
9.3% (Simplified – often Medicare + half SE tax deduction)
Estimated Tax Liability
Total Estimated Taxes: —
Estimated Income Tax: —
Estimated Self-Employment Tax: —
Net Income (After Taxes): —
Understanding DoorDash Tax Calculations
As an independent contractor for DoorDash, you are considered self-employed. This means you're responsible for paying your own income taxes and self-employment taxes. This calculator helps estimate your total tax burden based on your earnings and deductible expenses.
Key Components:
Gross Earnings: This is the total amount you earned from DoorDash before any deductions or expenses.
Deductible Business Expenses: These are costs incurred while working for DoorDash that can be subtracted from your gross earnings to reduce your taxable income. Common expenses include:
Mileage: The IRS allows you to deduct a standard mileage rate for business use of your vehicle. For 2023, this rate is 65.5 cents per mile. For 2024, it is 67 cents per mile. Our calculator uses the mileage input directly.
Phone/Internet: A portion of your cell phone and internet bill used for work.
Bags and Supplies: Insulated delivery bags, phone mounts, etc.
Service Fees: Any platform fees you paid.
Taxable Income: This is your Gross Earnings minus your total Deductible Business Expenses.
Income Tax: This is calculated based on your Taxable Income and your chosen Income Tax Bracket.
Self-Employment Tax: This covers Social Security and Medicare taxes for self-employed individuals. The rate is typically 15.3% on the first $168,600 of net earnings (for 2024) for Social Security, and there's no limit for Medicare. You can deduct one-half of your self-employment tax from your gross income, which effectively reduces your income tax liability.
How the Calculator Works:
1. Calculate Net Earnings for SE Tax: Self-employment tax is calculated on 92.35% of your net earnings (Gross Earnings – Business Expenses). This is because the IRS allows a deduction for one-half of your self-employment taxes.
2. Calculate Self-Employment Tax: The chosen Self-Employment Tax Rate is applied to the Net Earnings for SE Tax.
3. Calculate Income Tax Deduction: One-half of the calculated Self-Employment Tax is deducted.
5. Calculate Income Tax: Taxable Income * Selected Income Tax Bracket.
6. Calculate Total Estimated Taxes: Income Tax + Self-Employment Tax.
7. Calculate Net Income: Gross Earnings – Total Estimated Taxes.
Note: The mileage deduction is accounted for within the 'Deductible Business Expenses' input. If you prefer to use the standard mileage rate, you would multiply your 'Total Business Miles Driven' by the applicable IRS rate (e.g., $0.67 for 2024) and enter that amount as your 'Deductible Business Expenses'.
This calculator provides an estimate for informational purposes only and is not a substitute for professional tax advice. Tax laws can be complex and may change. Consult with a qualified tax professional for personalized guidance.
function calculateTaxes() {
var grossEarnings = parseFloat(document.getElementById("grossEarnings").value);
var businessExpenses = parseFloat(document.getElementById("businessExpenses").value);
var mileage = parseFloat(document.getElementById("mileage").value); // Not directly used in formula, but for context
var taxBracketRate = parseFloat(document.getElementById("taxBracket").value);
var seTaxRate = parseFloat(document.getElementById("selfEmploymentTaxRate").value);
var errorMessage = "";
if (isNaN(grossEarnings) || grossEarnings < 0) {
errorMessage += "Please enter a valid positive number for Total DoorDash Earnings.";
}
if (isNaN(businessExpenses) || businessExpenses < 0) {
errorMessage += "Please enter a valid positive number for Deductible Business Expenses.";
}
if (isNaN(mileage) || mileage < 0) {
errorMessage += "Please enter a valid positive number for Total Business Miles Driven.";
}
if (errorMessage) {
document.getElementById("estimatedTaxes").innerText = "Error";
document.getElementById("estimatedIncomeTax").innerText = "Error";
document.getElementById("estimatedSelfEmploymentTax").innerText = "Error";
document.getElementById("netIncome").innerText = "Error";
document.getElementById("result").style.borderColor = "#dc3545";
document.getElementById("result").style.backgroundColor = "#f8d7da";
document.getElementById("result").style.borderLeftColor = "#dc3545";
document.getElementById("result").innerHTML = "
Calculation Error
" + errorMessage + "";
return;
}
var taxableIncomeBeforeSEDeduction = grossEarnings – businessExpenses;
var netEarningsForSETax = taxableIncomeBeforeSEDeduction * 0.9235; // 92.35% of net earnings
// Ensure netEarningsForSETax is not negative
if (netEarningsForSETax < 0) {
netEarningsForSETax = 0;
}
var estimatedSelfEmploymentTax = netEarningsForSETax * seTaxRate;
var seTaxDeduction = estimatedSelfEmploymentTax * 0.5; // 50% of SE tax is deductible
var taxableIncome = taxableIncomeBeforeSEDeduction – seTaxDeduction;
// Ensure taxableIncome is not negative
if (taxableIncome < 0) {
taxableIncome = 0;
}
var estimatedIncomeTax = taxableIncome * taxBracketRate;
var totalEstimatedTaxes = estimatedIncomeTax + estimatedSelfEmploymentTax;
var netIncome = grossEarnings – totalEstimatedTaxes;
// Format numbers for display
var formattedGrossEarnings = grossEarnings.toFixed(2);
var formattedBusinessExpenses = businessExpenses.toFixed(2);
var formattedMileage = mileage.toFixed(0); // Mileage typically whole numbers
var formattedEstimatedIncomeTax = estimatedIncomeTax.toFixed(2);
var formattedEstimatedSelfEmploymentTax = estimatedSelfEmploymentTax.toFixed(2);
var formattedTotalEstimatedTaxes = totalEstimatedTaxes.toFixed(2);
var formattedNetIncome = netIncome.toFixed(2);
document.getElementById("estimatedTaxes").innerText = "$" + formattedTotalEstimatedTaxes;
document.getElementById("estimatedIncomeTax").innerText = "$" + formattedEstimatedIncomeTax;
document.getElementById("estimatedSelfEmploymentTax").innerText = "$" + formattedEstimatedSelfEmploymentTax;
document.getElementById("netIncome").innerText = "$" + formattedNetIncome;
document.getElementById("result").style.borderColor = "#28a745";
document.getElementById("result").style.backgroundColor = "#d4edda";
document.getElementById("result").style.borderLeftColor = "#28a745";
}