Instacart Shopper Taxes in New Hampshire - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in New Hampshire?

As an Instacart shopper, your earnings are considered self-employment income, and are taxable at the federal level. You'll report this income on Schedule C (Profit or Loss from Business) when you file your federal income tax return (Form 1040). This schedule allows you to deduct business expenses, reducing your taxable income.

However, New Hampshire is unique! New Hampshire does not have a general income tax on wages or salaries. This means your Instacart earnings themselves are not subject to New Hampshire state income tax. New Hampshire only taxes interest and dividends. You will still need to file a New Hampshire state return, but likely won't owe any income tax on your Instacart income.

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 of your vehicle. Keep a detailed log of all miles driven for Instacart deliveries – from leaving to pick up the order, to dropping it off at the customer. Apps like Stride Tax can help with this.
• Phone Expenses: You likely use your phone for the Instacart app, communication with customers, and navigation. You can deduct the percentage of your phone bill that relates to business use. If you use your phone 50% for Instacart, you can deduct 50% of the 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 Instacart charges you, or the cost of tax preparation software used to file your self-employment taxes, are deductible business expenses.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called Self-Employment Tax and is currently 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 only pay self-employment tax on your profit (income minus expenses). Also, you don't pay Social Security tax on earnings above the annual wage base (which changes each year – for 2024 it's $168,600). However, you do pay Medicare tax on all self-employment income. You'll also get to deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for New Hampshire Residents

While New Hampshire offers a tax advantage by not taxing earned income, accurate record-keeping is still crucial for maximizing your federal deductions and correctly calculating your self-employment tax. Consider using accounting software or a tax app designed for gig workers to simplify the process. Don't hesitate to consult with a qualified tax professional if you have specific questions or a complex tax situation. Wishing you a profitable and tax-smart year!