Instacart Shopper Taxes in Florida - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Florida?

Yes, your income as an Instacart shopper is taxable at the federal level. Because you are considered an independent contractor, not an employee, the IRS requires you to report your earnings and pay taxes on those earnings. You'll use Schedule C (Profit or Loss from Business) to report your income and expenses when you file your federal income tax return (Form 1040). This schedule calculates your net profit (income minus expenses), which is then added to your other income to determine your adjusted gross income (AGI).

The good news for Florida residents is that Florida has no state income tax. This means you won’t need to file a state income tax return or pay state income tax on your Instacart earnings. However, this only applies to state income tax. You are still responsible for federal taxes.

Top Tax Write-offs for Instacart Shoppers

• 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 deliveries (from leaving to pick up the order to delivering it). Apps like Stride Tax or Everlance can help with this.
• Phone Expenses: You likely use your phone for accepting batches, navigating, and communicating with customers. You can deduct the percentage of your phone bill that relates to your Instacart work. If you use your phone 100% for work, you can deduct the entire bill.
• Hot Bags & Equipment: The cost of insulated bags, phone mounts, or other equipment specifically used for Instacart shopping is deductible. These are considered business expenses.
• Software & App Fees: Any fees Instacart charges you, or the cost of tax preparation software used specifically for your Instacart income, are deductible.

The 15.3% Self-Employment Tax Surprise

As an independent contractor, you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This is called Self-Employment Tax and it totals 15.3% (12.4% for Social Security and 2.9% for Medicare). You'll calculate this on Schedule SE (Self-Employment Tax). Don't be alarmed when you see this amount – it's equivalent to what an employer would normally pay on your behalf if you were an employee. However, you only pay self-employment tax on profits over $400.

Closing Tip for Florida Residents

While you benefit from Florida’s lack of state income tax, diligent record-keeping is crucial for maximizing your federal tax deductions as an Instacart shopper. Consider using accounting software or a dedicated app to track your mileage and expenses throughout the year. Don't hesitate to consult with a qualified tax professional if you have specific questions or complex tax situations. Filing accurately and taking advantage of all eligible deductions will help you minimize your tax liability and avoid potential issues with the IRS.