Instacart Shopper Taxes in Louisiana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Louisiana?

Yes, absolutely. Income earned as an Instacart shopper is taxable at both the federal and Louisiana state levels. Because Instacart treats you as an independent contractor, not an employee, you are responsible for reporting your earnings and paying all applicable taxes.

Federal Taxes: You'll report your Instacart income on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form allows you to deduct business expenses (more on that below) to arrive at your taxable profit. You are essentially running your own small business.

Louisiana State Taxes: Louisiana has a graduated income tax system, meaning the tax rate increases as your income increases. Your Instacart profit (after deducting business expenses on your federal Schedule C) will be used to calculate your Louisiana income tax liability based on the current year's tax brackets. You'll use Form 540 to file your Louisiana state income tax return. The specific brackets for 2024 (filing in 2025) will be available on the Louisiana Department of Revenue website (www.revenue.louisiana.gov).

Top Tax Write-offs for Instacart Shoppers

As an Instacart shopper, you have several opportunities to reduce your taxable income through legitimate business deductions. Keep excellent records of all expenses!

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use. You'll need to track all miles driven for Instacart shopping (from leaving to pick up the order, to delivery, and returning). You can use an app or a mileage log. You cannot include commuting miles.
• Phone Expenses: If you use your personal cell phone for Instacart (and most shoppers do), you can deduct the percentage of the phone bill that relates to business use. Keep records of your phone bill and estimate the business percentage.
• Hot Bags & Shopping Equipment: The cost of insulated bags, shopping carts, or other equipment specifically used for Instacart shopping is deductible.
• Software & Apps: If you use any apps or software to help manage your Instacart business (e.g., mileage trackers, expense trackers), the cost of those subscriptions is deductible.

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 – a total of 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 reduces your overall tax liability.

Closing Tip for Louisiana Residents

Tax laws can be complex, and this is a general guide. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for independent contractors. For personalized advice tailored to your specific situation, and to ensure you're taking advantage of all eligible deductions, consult with a qualified tax professional in Louisiana. The Louisiana Department of Revenue website (www.revenue.louisiana.gov) is also a valuable resource. Good luck, and happy shopping!