Marketplace facilitators like DoorDash connect buyers with sellers. When merchants sell goods on the DoorDash platform, they may be required to collect and remit tax on those orders. Some jurisdictions have tax laws that shift certain tax remittance responsibilities from merchants to DoorDash. These marketplace facilitator laws affect how taxes are handled on the platform and how merchant payouts are calculated. In the article below, we’ll walk through specifics on the marketplace facilitator rules, the jurisdictions they relate to, and what this means for merchant payouts.
What is a marketplace facilitator?
In general terms, a marketplace facilitator is a platform like DoorDash that connects buyers and sellers to help facilitate the sale of various goods and services, including food, drinks, groceries, and other retail items.
How do marketplace facilitator laws impact tax?
In some jurisdictions, there are laws that change the party that is responsible for remitting tax on sales made between buyers and sellers on a marketplace facilitator’s platform. These laws shift the responsibility of tax remittance from merchants to DoorDash, as the marketplace facilitator. In these jurisdictions, listed below, DoorDash remits directly to the tax authorities certain taxes on the merchant’s sales made through the DoorDash platform.
In which jurisdictions does DoorDash remit tax directly to the tax authorities as a marketplace facilitator?
DoorDash is registered to collect and remit certain taxes directly to the tax authorities as a marketplace facilitator on orders made through the DoorDash platform in the following jurisdictions:
Marketplace Facilitator List
How does DoorDash handle local taxes in marketplace facilitator states?
Historically, in states where DoorDash acts as a marketplace facilitator, DoorDash remitted all applicable local taxes, such as food and beverage taxes imposed by counties and cities, directly to the tax authorities.
Starting May 1, 2024, in Alabama and Florida, DoorDash began including certain local taxes in payouts to restaurant merchants instead of remitting those taxes directly to the tax authorities.
Starting July 1, 2025, in all states where DoorDash acts as a marketplace facilitator, DoorDash began including certain local taxes in payouts to restaurant merchants who accept orders via DoorDash tablets (i.e., non-integrated restaurant merchants) instead of remitting those taxes directly to the tax authorities.
Starting May 1, 2026, in all states where DoorDash acts as a marketplace facilitator, DoorDash began including certain local taxes in payouts to restaurant merchants who use select POS integrations instead of remitting those taxes directly to the tax authorities.
For those merchants, here’s what that means:
DoorDash will continue to collect all applicable taxes from customers at checkout.
DoorDash will continue to remit certain taxes, typically state-level sales taxes, directly to tax authorities.
DoorDash will include certain local taxes, typically food and beverage taxes, in payouts to eligible restaurant merchants rather than remitting those taxes directly to the tax authorities.
⚠️ Important: DoorDash will not remit to tax authorities any taxes that are included in payouts to merchants.
DoorDash continues to remit all applicable local taxes directly to the tax authorities for the following merchants:
POS-integrated restaurant merchants whose integration is not supported
Non-restaurant merchants, such as grocery, retail, or liquor merchants
How do the marketplace facilitator laws affect my payouts?
Merchant payouts will include any taxes that DoorDash collects but does not remit directly to the tax authorities. Merchant payouts will exclude any taxes that DoorDash collects and remits directly to tax authorities.
For details on which taxes DoorDash remits and which are included in merchant payouts, see the sections above.
Where can I view the tax that DoorDash remitted directly to the tax authorities for my orders?
Merchants can view the tax that DoorDash remitted directly to the tax authorities in various reports available in the Merchant Portal.
To view the tax that DoorDash remitted directly to the tax authorities for each order, see the Transactions breakdown report, column “Subtotal Tax Remitted by DoorDash to Tax Authorities”.
To view the tax that DoorDash remitted directly to the tax authorities for each payout, see the Payouts report, column “Subtotal Tax Remitted by DoorDash to Tax Authorities”.
To view the tax that DoorDash remitted directly to the tax authorities for a selected period in the Transactions page in the Merchant Portal, see the Sales card as shown below.
To view the tax that DoorDash remitted directly to the tax authorities for a selected payout in the Payouts page in the Merchant Portal, similar in layout and content to the one shown above.
To view the tax that DoorDash remitted directly to the tax authorities for a specific month in the monthly Statement, see the footnote in the document as shown below.
Please see How to Utilize DoorDash Reporting to download Transactions and Payouts reports from the Merchant Portal.
In addition merchants will see a downloadable report titled “Monthly Subtotal Tax Breakdown” available under the Statements tab in the Merchant Portal. This report will be generated monthly and will provide detailed information for each tax collected by DoorDash on merchant orders:
Tax jurisdiction: This is the jurisdiction that imposes the tax that DoorDash collected. This can be a state, county, city, or other jurisdiction.
Tax imposition: This is the type of tax imposed that DoorDash collected. This can be a sales and use tax, a food and beverage tax, or other tax.
Remittance responsibility: This is the party responsible for remitting the tax to the tax authorities. This will be either DoorDash or Merchant.
Taxable basis: This is the sales amount to which the tax was applied.
Tax amount: This is the amount of tax that DoorDash collected.
For which orders will DoorDash collect and remit tax directly to the tax authorities as a marketplace facilitator?
In jurisdictions where DoorDash is required to collect and remit tax as a marketplace facilitator, DoorDash will collect and remit certain taxes directly to the tax authorities on applicable sales facilitated in the jurisdictions listed above for Marketplace, Self-Delivery, Flexible Fulfillment, and Online Ordering. DoorDash does not collect and remit tax directly to the tax authorities for Drive On-Demand.
Who is responsible for setting tax rates on my menu items?
DoorDash is generally responsible for setting tax rates on merchant menu items in the jurisdictions on the Marketplace Facilitator List. Merchants are responsible for setting tax rates on merchant menu items in all other jurisdictions. For more information, head to How to Update the Tax Rates of Your Menu Items and Store.
How does the process differ for point-of-sale (POS) integrations?
Tax payouts for POS-integrated merchants vary by integration provider. Some integrations support “split tax,” which means DoorDash remits certain taxes (typically state-level taxes) directly to the tax authorities and includes certain other taxes (typically local taxes, such as food and beverage taxes) in merchant payouts. Where split tax is supported, DoorDash may include certain local taxes in merchant payouts rather than remitting them directly to the tax authorities.
Where split tax is not supported, DoorDash will remit all applicable taxes directly to the tax authorities and will not include any taxes in merchant payouts.
DoorDash will continue to calculate applicable taxes at checkout, and merchants can access the Merchant Portal for reporting information.
What if I switch from a DoorDash tablet setup to a POS or middleware integration after July 1, 2025?
If you transition from a DoorDash tablet (non-integrated) setup to a non-eligible POS or middleware integration after July 1, 2025, here is what to expect:
Your payouts will continue to include applicable local taxes
If your payouts included applicable local taxes after July 1, 2025, DoorDash will continue to include applicable local taxes in your payouts even after you switch to a POS or middleware integration. Your payout structure will not change as a result of a switch to a POS or middleware integration.
DoorDash remains the source of truth for tax payout reporting
If your POS or middleware integration is unable to receive and display local taxes, the tax reports generated by your POS or middleware system may not match the tax reports available in the DoorDash Merchant Portal.
To avoid reconciliation issues, rely on DoorDash’s Transactions and Payouts reports for accurate information about taxes collected and passed to you.
Can DoorDash send a letter to me confirming that DoorDash remits tax directly to the tax authorities for my store?
Yes, please, contact DoorDash Merchant Support to submit a request.
How should I report my taxes?
DoorDash is unable to provide tax or legal advice. DoorDash recommends that merchants contact a tax professional.
Why don’t I see the Monthly Subtotal Tax Breakdown report in the Merchant Portal?
If the Monthly Subtotal Tax Breakdown report is not in the Merchant Portal, it means one of the following applies:
The merchant store is located in a jurisdiction where DoorDash is not a marketplace facilitator
DoorDash includes all taxes in the merchant’s payouts rather than remitting them directly to the tax authorities.
In these cases, DoorDash does not generate the Monthly Subtotal Tax Breakdown report.
What if I’m located in Puerto Rico?
As a marketplace facilitator, DoorDash remits tax directly to the tax authorities for all Puerto Rico merchants effective April 1, 2021. DoorDash’s Form SC 2918 “Certificado de Registro de Comerciante” is available here.
What if I’m located in Canada?
For information on the marketplace facilitator laws in Canada, please see the Marketplace Facilitator Guide for Canada.
What if I’m located in Australia or New Zealand?
Australia and New Zealand do not have marketplace facilitator laws that impact sales made through the DoorDash platform. Merchants in Australia and New Zealand are responsible for remitting all tax on sales made through the DoorDash platform.
Marketplace facilitator laws have changed the landscape of online sales, making platforms like DoorDash responsible for tax remittance in select jurisdictions. This shift has implications for merchant payouts and tax compliance, emphasizing the need for adaptability and awareness in the evolving e-commerce environment. This is why it’s important to speak with a tax professional to make sure you’re adhering to the current legal standards.
Still have questions?
If you have any questions, please submit a help ticket on the Merchant Portal.
