Does DoorDash collect sales tax on my restaurant orders?

Yes in all US sales-tax states. DoorDash, Uber Eats, Grubhub, and similar platforms operate as marketplace facilitators and collect and remit sales tax on orders they facilitate.

Do I still file a sales tax return if all my orders come through delivery apps?

Yes. You still file, but you report marketplace-facilitated sales on a separate line (non-taxable to you). This keeps records straight for audit purposes.

Do delivery drivers pay sales tax?

No — drivers are independent contractors paid for a service. Their income is reported on a 1099-NEC; sales tax on the food is handled by the platform.

Are delivery fees taxable?

Most states tax delivery fees when the underlying order is taxable (i.e., prepared food). The platform collects on the full order including fees.

Sales Tax for Food Delivery Services (DoorDash, Uber Eats, Grubhub)

Updated 2026-04-27

Food delivery platforms are marketplace facilitators in all US sales-tax states. Here is how the split works between restaurant, platform, and driver for sales tax.

Starting around 2020-2022, most states extended their marketplace facilitator laws to cover third-party food delivery apps. DoorDash, Uber Eats, Grubhub, Caviar, and similar platforms now calculate, collect, and remit sales tax on the orders they facilitate. This shifted the compliance burden from thousands of individual restaurants to a handful of large platforms — simpler for everyone.

What the platform collects

The platform collects sales tax on the entire order: food subtotal, delivery fees, service fees, and small-order fees (if taxable in that state). Tips are voluntary and not taxable.

What the restaurant is responsible for

Dine-in and pickup orders placed directly with the restaurant are NOT covered by the delivery platform's tax collection. The restaurant collects its own sales tax.
Reconciliation. On the monthly sales tax return, the restaurant reports DoorDash-facilitated sales on a separate line (typically "marketplace sales" or similar) so they're NOT double-taxed.
1099-K reporting. The platform issues the restaurant a 1099-K for the gross payments. Income tax is the restaurant's responsibility regardless of who collected sales tax.

Drivers

Delivery drivers are not sellers of the food — they're drivers. Their compensation from the platform is independent-contractor income (1099-NEC). Drivers don't collect or remit sales tax on anything. Some drivers also run tax-deductible mileage logs, but that's income tax territory.

Split checks: order paid partly at restaurant, partly on app

Some restaurants allow the app to bill a split where the customer prepays delivery + fees on the app, then pays for the food in person. These hybrid setups create accounting complexity — the platform collects tax on the portion it processed; the restaurant collects tax on the in-person portion. Keep records tied to order IDs.

Virtual restaurants and ghost kitchens

Virtual brands that operate only through delivery platforms are still restaurants — they register for a sales tax permit in their state, report marketplace sales on the return, and handle non-facilitated side channels (e.g., catering orders placed directly) separately.

Frequently asked questions

Does DoorDash collect sales tax on my restaurant orders?: Yes in all US sales-tax states. DoorDash, Uber Eats, Grubhub, and similar platforms operate as marketplace facilitators and collect and remit sales tax on orders they facilitate.
Do I still file a sales tax return if all my orders come through delivery apps?: Yes. You still file, but you report marketplace-facilitated sales on a separate line (non-taxable to you). This keeps records straight for audit purposes.
Do delivery drivers pay sales tax?: No — drivers are independent contractors paid for a service. Their income is reported on a 1099-NEC; sales tax on the food is handled by the platform.
Are delivery fees taxable?: Most states tax delivery fees when the underlying order is taxable (i.e., prepared food). The platform collects on the full order including fees.