Instacart Shopper Taxes in Delaware - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Delaware?

Yes, absolutely. Income earned as an Instacart shopper is taxable at both the federal and Delaware state levels. Because Instacart treats you as an independent contractor, not an employee, you are considered self-employed by the IRS and the State of Delaware. This means you're responsible for reporting your earnings and paying all applicable taxes.

Federal Requirements: You'll report your Instacart income on Schedule C (Profit or Loss from Business) when you file your federal income tax return (Form 1040). Schedule C allows you to deduct business expenses, reducing your taxable income. You’ll calculate your net profit (income minus expenses) on Schedule C, and that profit is then transferred to your Form 1040.

Delaware Requirements: Delaware has a graduated income tax system, meaning the tax rate increases as your income increases. Your net profit from Schedule C will be included in your Delaware taxable income, and you’ll use the Delaware tax rate brackets to calculate your state income tax liability. You'll file this information using Delaware Form 100.

Top Tax Write-offs for Instacart Shoppers

As a self-employed Instacart shopper, you can significantly reduce your tax burden by claiming eligible business deductions. Here are some key write-offs:

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use. Keep a detailed log of all miles driven for Instacart shopping (from leaving to pick up the order to delivering it), and calculate your total mileage deduction.
• Phone Expenses: If you use your personal phone for Instacart (which is likely!), you can deduct the percentage of the phone bill that relates to business use. For example, if you use your phone 75% of the time for Instacart, you can deduct 75% of your phone bill.
• Hot Bags & Shopping Equipment: The cost of insulated bags, shopping carts, or any other equipment specifically used for Instacart shopping is deductible.
• Software & App Fees: Any fees paid to Instacart or for apps used to track mileage or income (like Stride Tax or Everlance) are deductible business expenses.

The 15.3% Self-Employment Tax Surprise

Many independent contractors are surprised by self-employment tax. When you're an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed individual, you're responsible for both the employer and employee portions, totaling 15.3%. This is calculated on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on profits over $400. The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for Delaware Residents

Tax time can be complex, especially when you're self-employed. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software or a dedicated app to simplify tracking. Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking advantage of all available deductions and complying with both federal and Delaware tax laws. Wishing you a profitable and tax-efficient year as an Instacart shopper in Delaware!