Is DoorDash Worth it After Taxes?

A great way to get some extra cash is to get a part-time job. Enter companies like DoorDash. DoorDash is a food delivery service that is always looking for new employees to keep up with the ever-growing demand of getting your groceries delivered right at your doorstep.

When it comes to joining DoorDash, however, you’re bound to have a few questions. In this guide, we’ll give you a brief overview of what DoorDash is, how you get paid, how much you earn, and whether it’s worth it even after taxes. Ready to get that money? We know you are.

What is DoorDash?

First things first. Let’s establish what DoorDash is. DoorDash is a food delivery service operating in thousands of cities across the United States, Canada, and Australia. It allows its customers to order food from restaurants or even buy groceries from the comfort of their homes. Their food will then be delivered to them.

DoorDash is becoming more and more popular because it’s given an avenue for people to buy groceries and food without leaving their homes. They can even do it while lying down in bed. DoorDash delivery workers will then pick up said food and groceries and deliver them to the customers.

How much do you earn working for DoorDash?

The first thing people think of when finding a job is how much they get paid. This varies based on a lot of factors. Workers are paid using a formula. First, you have the base pay. Then, you have promotions. Then, you have tips. Add all three together for your total earnings. Let’s discuss each individually.

  1. Base Pay

Base Pay is the rate you’re paid for a delivery without the tips. This is based on the time it took you to travel to the area, the distance, and the desirability which is influenced by your acceptance rate as a Dasher. For context, your acceptance rate is the percentage of orders you accept. The higher the acceptance rate, the higher the base pay. Overall base pay usually ranges from $2 to $10.

  1. Promotions

After base pay, the promotions are then taken into account. This is a great way for you to earn extra cash. There are 3 types. The first is Peak Pay. The second is the Challenges feature.

The last is the DoorDash Drive. When you deliver during dinner rushes, etc., you’re likely to get Peak Pay which will be added to your total earnings. Challenges are pretty straightforward.

These are challenges that if completed, will give the drivers a bonus. Finally, we have DoorDash Drive. When you deliver large orders that require special handling, you might get a bonus for it.

  1. Tips

The last thing DoorDash takes note of when it comes to your overall earnings is the tips. When a customer tips you, you take all of it without having to give it back to DoorDash and it will be added to your total earnings.

Is DoorDash worth it even after taxes?

Is DoorDash worth it after taxes

Now, for the question you’ve all been waiting for. Is being a DoorDasher still worth it even after taxes? This all depends on how much you earn as a DoorDash employee. Some earn around $13 to $17 an hour.

Some might earn less. Some earn more. If you’re a top-rated dasher and know where all the hotspots are, you’ll likely make more compared to a newbie. Although, for the most part, DoorDash is a great way to earn money.

Taxes shouldn’t be the determining factor. You still have to pay tax on any income; DoorDash or not. However, you pay less tax on a dollar earned dashing as a result of the mileage deduction.

You’ll have to withhold your own taxes, but there are also tons of deductions you can claim including parking, tolls, cellphone, repairs, hot bags, dash cameras, and even health insurance.

So yes, DoorDash is totally worth it if you’re looking to earn extra income to pay off debt or have some money in your savings. But DoorDash as a full-time job? Probably not so much considering safety issues and of course the wear and tear on your vehicle. But many people are willing to risk all of that than having to go into an office.

What you have to remember when it comes to taxes is that all the earnings you get as an employee are not tax withheld by DoorDash. This means that you are responsible for keeping track of your own earnings as well as reporting them accurately in tax filings. 

The Takeaway

DoorDash opens a ton of opportunities for you. It can help you pay bills when you’re strapped for cash. It can help you pay off your student loans or survive as a college student. If you’re looking for a good side hustle, DoorDash is something you should consider.

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