Instacart Shopper Taxes in Ohio - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Ohio?

Yes, absolutely. Income earned as an Instacart shopper is taxable at both the federal and Ohio 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're essentially running your own small business.

Ohio State Taxes: Ohio has a graduated income tax system. This means the tax rate you pay depends on your total taxable income. Your Instacart profit (after deducting business expenses on Schedule C) will be added to your other income, and then Ohio's tax brackets will be applied to determine your state income tax liability. You'll use Ohio Form IT-1040 to file your state taxes. The rates change annually, so refer to the Ohio Department of Taxation website for the most current brackets when filing in 2025.

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 deduct commuting miles to your first order of the day.
• 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 75% for Instacart, you can deduct 75% of the bill.
• Hot Bags & Shopping Equipment: The cost of insulated bags, shopping carts, or other equipment specifically used for Instacart shopping is deductible. If the item has a useful life of more than one year (like a cart), you may need to depreciate it over several years.
• Instacart Shopper Software/Apps: If you pay for any apps or software specifically to help you manage your Instacart business (beyond the Instacart app itself), those costs are deductible.

The 15.3% Self-Employment Tax Surprise

Because you're 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. The combined rate is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings (profit) from Schedule C. However, you only pay self-employment tax on earnings over $400. You'll calculate this on Schedule SE (Self-Employment Tax). The good news is that you can deduct one-half of your self-employment tax from your gross income on Form 1040, which reduces your overall tax liability.

Closing Tip for Ohio Residents

Tax time can be complex, especially when you're self-employed. Don't hesitate to consult with a qualified tax professional in Ohio for personalized advice. Keeping accurate records throughout the year – mileage logs, receipts for expenses, and income statements from Instacart – will make filing much easier and ensure you claim all the deductions you're entitled to. The Ohio Department of Taxation website (https://tax.ohio.gov/) is also a valuable resource. Wishing you a smooth and successful tax season!