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No Tax on Tips for DoorDash and Instacart Drivers (2026)

Tax year 2026 · Last updated · Maintained by the WattFlow team

Yes. DoorDash and Instacart Drivers are on the IRS tipped jobs list (code 804), so you can deduct up to $25,000 of tips from federal income tax for 2026. Customer tips from delivery apps can qualify, up to your profit.

Tips calculator for doordash and instacart drivers

Private: runs in your browser
Form 1040, line 11. Include your overtime and tips.
Must be on the IRS tipped jobs list.
Gig work or 1099 tips? DoorDash, Uber, self-employed
Schedule C net profit. You can’t deduct more than this.
More options Tax year, itemizing, special cases
Leave blank if you take the standard deduction.
Optional. 000 means the job doesn’t qualify.
Only if you report extra tips yourself.

Estimate of federal income tax only. Not tax advice.

Example: delivery driver

What delivery drivers should know

Your IRS code

804 Goods delivery people. Not your exact job? See the full list of 71 tipped jobs.

DoorDash and Instacart Drivers: FAQ

Does no tax on tips apply to DoorDash?

Yes. Goods delivery people are code 804 on the IRS list. The deduction is capped at your net profit.

Where is my tip total?

In the tip part of your 1099-K or 1099-NEC, or the app’s yearly earnings summary.

What if I made a loss?

Then your 1099 tip deduction is $0, because it can’t be more than your profit.

How much can delivery drivers deduct?

Up to $25,000 of qualified tips per tax return, for 2025 through 2028. It shrinks by $100 for each full $1,000 of income over $150,000 ($300,000 joint).

Do I still pay Social Security and Medicare on tips?

Yes. The deduction only lowers federal income tax. Payroll or self-employment tax and state tax don’t change.