Instacart Shopper Taxes in Massachusetts - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Massachusetts?

Yes, absolutely. Income earned as an Instacart shopper is taxable at both the federal and Massachusetts 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 Requirements: 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'll need to track your total earnings from Instacart (as reported on Form 1099-K if you meet the reporting thresholds, or through your Instacart earnings summary if not) and all related expenses.

Massachusetts Requirements: Massachusetts has a flat income tax rate of 5.0% for the 2024 tax year (filing in 2025). This means all of your taxable income, after deductions, will be taxed at this single rate. You will report your federal adjusted gross income (AGI) and any Massachusetts-specific adjustments on Form MA 1040. Massachusetts also requires you to report your self-employment income and pay self-employment tax (discussed below).

Top Tax Write-offs for Instacart Shoppers

As an Instacart shopper, you can significantly reduce your tax liability 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 deliveries (from leaving home to picking up the order, to delivery, and returning home). You can use apps to track this automatically.
• Hot Bags & Equipment: The cost of insulated bags, phone mounts, car chargers, and other equipment necessary for shopping and delivering can be deducted. If the item has a useful life of more than one year, you may need to depreciate it over several years.
• Smartphone & Data Plan (Partial): If you use your smartphone primarily for Instacart work, you can deduct the percentage of your phone bill and data plan that relates to business use. Keep records to support this allocation.
• Instacart Shopper Software/Apps: Any subscription fees or costs associated with apps or software specifically used to manage your Instacart business (e.g., mileage trackers, expense trackers) are deductible.

The 15.3% Self-Employment Tax Surprise

Because you're an independent contractor, you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This is called Self-Employment Tax. The combined rate is 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You'll calculate this on Schedule SE (Self-Employment Tax).

Good news: you get to deduct one-half of your self-employment tax from your adjusted gross income (AGI) on Form 1040, which can lower your overall tax bill. However, this tax is in addition to your regular income tax, so it's important to plan for it.

You only pay self-employment tax on profits over $400.

Closing Tip for Massachusetts Residents

Tax laws can be complex, and this information is for general guidance only. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional, especially in Massachusetts where state tax rules can be nuanced. Proactive tax planning can save you money and avoid potential issues with the IRS or the Massachusetts Department of Revenue. Don't hesitate to seek professional advice tailored to your specific situation!