What is a marketplace facilitator?
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 on DoorDash?
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.
How does DoorDash handle local taxes in marketplace facilitator states?
Historically, DoorDash has remitted all applicable local taxes, such as food and beverage taxes imposed by counties and cities, directly to tax authorities in states where DoorDash is a marketplace facilitator.
Key dates and rules
As of May 1, 2024: In Alabama and Florida, DoorDash began passing certain local taxes through to restaurant merchants
As of July 1, 2025: In all marketplace facilitator states:
DoorDash will continue to collect all applicable taxes from customers at checkout
DoorDash continues to remit certain taxes (typically state-level sales tax) directly to tax authorities
DoorDash passes through certain local taxes (typically food and beverage taxes) to non-integrated restaurant merchants
Important: DoorDash will not remit to tax authorities any taxes that are passed through to merchants.
This change applies to:
Non-integrated restaurant merchants (i.e., those not connected through a POS integration)
This change doesn't apply to:
Integrated restaurant merchants (connected through a POS integration)
Non-restaurant merchants (e.g., grocery, retail, liquor)
How do the marketplace facilitator laws affect my payouts?
Merchant payouts will include any taxes that DoorDash collects but doesn't 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 passed through to the merchant, see the sections above.
How can I see the taxes DoorDash remitted on my behalf?
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:
Visit the Merchant Portal
View the Transactions breakdown report
See the column Subtotal Tax Remitted by DoorDash to Tax Authorities
To view the tax that DoorDash remitted directly to the tax authorities for each payout:
Visit the Merchant Portal
View the Payouts report
See 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:
Visit the Merchant Portal
View the Transactions page
See the Sales card
In which jurisdictions does DoorDash remit tax directly?
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:
To view the tax that DoorDash remitted directly to the tax authorities for a selected payout:
Visit the Merchant Portal
View the Payouts page
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 new 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?
Where required by law, DoorDash collects and remits certain taxes for:
Marketplace
Self-Delivery
Flexible Fulfillment
Online Ordering
DoorDash doesn't collect and remit tax for Drive On-Demand orders.
Who sets tax rates on my menu items?
DoorDash is generally responsible for setting tax rates on merchant menu items in the jurisdictions in 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.
Does a POS integration change tax payouts or remittance?
There is no difference in tax payouts and tax remittance for POS integrations. DoorDash continues to handle all tax calculations where applicable. Merchants with POS integrations can access the Merchant Portal for reporting information. For more information, head to How to Update the Tax Rates of Your Menu Items and Store.
What if I switch from a DoorDash tablet setup to a POS/Middleware integration after July 1, 2025?
If you transition from a DoorDash tablet (non-integrated) setup to a POS integration (such as Square, Toast, or Checkmate) 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 (e.g., food and beverage taxes) in your payouts even after you switch to a POS integration. Your payout structure will not change as a result of a switch to a POS integration.
DoorDash remains the source of truth for tax payout reporting
If your POS integration is unable to receive and display local taxes, the tax reports generated by your POS 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 provide confirmation that it remits tax 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 isn't in the Merchant Portal, it means one of the following applies:
The merchant store is located in a jurisdiction where DoorDash isn't 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 doesn't generate the Monthly Subtotal Tax Breakdown report.
What if I'm located outside the US?
Puerto Rico: DoorDash remits tax directly for all merchants (effective April 1, 2021). DoorDash's Form SC 2918 - Certificado de Registro de Comerciante is available here.
Canada: See the Marketplace Facilitator Guide for Canada.
Australia and New Zealand: No marketplace facilitator laws apply. Merchants remit all taxes. Speak with a tax professional to make sure you're adhering to the current legal standards.
If you have any questions, please submit a help ticket on the Merchant Portal.
