Instacart Shopper Taxes in Oklahoma - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Oklahoma?

Yes, absolutely. Income earned as an Instacart shopper is taxable at both the federal and Oklahoma 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'll need to track all income received from Instacart – typically reported on Form 1099-K if you meet certain thresholds (generally $20,000 in payments and more than 200 transactions, but this can change, so always check the IRS guidelines).

Oklahoma State Taxes: Oklahoma has a graduated income tax system, meaning the tax rate increases as your income increases. Your Instacart profit (after federal adjustments and deductions) will be subject to Oklahoma income tax. You'll use Form 511, Oklahoma Income Tax Return, to calculate and pay your state income tax. The specific tax brackets for 2024 will be used when filing in 2025, and you can find the current rates on the Oklahoma Tax Commission website (ok.gov/tax).

Top Tax Write-offs for Instacart Shoppers

As an Instacart shopper, you have several potential deductions that can significantly reduce your tax liability. Keep excellent records to support these!

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use. You need to track all miles driven for Instacart shopping – from your home to the store, from the store to the customer, and back. You can use an app or a mileage log. You cannot deduct commuting miles (driving from your home to your first shopping location if it's considered a regular place of business).
• Phone Expenses: If you use your personal cell phone for Instacart (and most shoppers do!), you can deduct the percentage of the phone expense that relates to your Instacart work. Keep records of your phone bill and estimate the business use percentage.
• Hot Bags & Shopping Supplies: The cost of insulated bags, reusable shopping bags specifically for Instacart, hand sanitizer, and other supplies directly related to your shopping activities are deductible.
• Software & Apps: If you use any apps or software specifically to help manage your Instacart business (e.g., mileage trackers, expense trackers), the cost of those subscriptions or purchases is 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. It's 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).

The good news is you only pay self-employment tax on your profit (income minus business expenses). Also, 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 Oklahoma 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, especially regarding Oklahoma's graduated tax rates and potential credits, consulting with a qualified tax professional in Oklahoma is always a wise investment. Don't hesitate to seek professional help to ensure you're maximizing your deductions and complying with all applicable tax laws.